National association of insurance commissioners

National Association of Insurance Commissioners

Abbreviation	NAIC
Formation	1871
Type	Standard-setting organization
Headquarters	Kansas City, Missouri
Location	United States
Membership	State government insurance regulators
CEO	Michael F. Consedine
Website	naic.org

The National Association of Insurance Commissioners (NAIC) is a U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia, and five U.S. territories. The NAIC is charged with setting standards and best practices, conducting peer review, and coordinating regulatory oversight for the state insurance regulators. It is headquartered in Kansas City, Missouri, with an additional office in Washington, D.C.

History

The NAIC was established in 1871 by insurance regulators from several states to address the need for uniform regulations in the insurance industry. This was in response to the varying state laws that often led to confusion and inconsistency in insurance practices. Since its inception, the NAIC has played a pivotal role in shaping the insurance regulatory landscape in the United States.

Function

The primary function of the NAIC is to assist state insurance regulators in promoting a healthy insurance marketplace. The association develops model laws and regulations aimed at creating consistency across state lines and helping states retain regulatory authority over insurance. The NAIC also provides a forum for the development of policies and delivers regulatory support functions.

Model Laws and Regulations

The NAIC creates model laws and regulations to help ensure a sound insurance regulatory framework across the United States. These models, while not binding, are often adopted or adapted by individual states to help standardize regulations and protect policyholders.

Financial Regulation

One of the critical roles of the NAIC is overseeing the financial health of insurance companies. This includes the accreditation program, which sets standards for state insurance department operations. Through its financial regulation standards, the NAIC helps ensure that insurance companies remain solvent and are able to meet their obligations to policyholders.

Education and Training

The NAIC provides education, training, and support to state insurance regulators to help them stay informed about the latest developments in insurance and regulatory practices. This includes national meetings, training programs, and seminars.

Consumer Protection

Consumer protection is a key focus of the NAIC. The organization develops standards and best practices aimed at protecting the interests of insurance consumers. It also provides resources and tools to help consumers understand their rights and the basics of insurance.

Technology and Innovation

The NAIC actively promotes the adoption of technology in the insurance sector. This includes initiatives to streamline regulatory processes and enhance the efficiency of supervision through technology.

See Also

• Insurance regulation
• Financial regulation
• Consumer protection