What is the primary function of the National Association of Insurance Commissioners (NAIC)?

The primary function of the National Association of Insurance Commissioners (NAIC) is to coordinate regulatory oversight across states. The NAIC is composed of state insurance regulators from all 50 states, the District of Columbia, and U.S. territories. Its main purpose is to facilitate interstate cooperation and ensure a consistent approach to insurance regulation among the states.

By developing model laws and regulations, the NAIC helps to promote best practices and enhance regulatory efficiency, ensuring that consumers are protected while also supporting the stability of the insurance market. This coordination helps address issues that cross state lines effectively, such as multi-state insurance sales and consumer protections.

In contrast to direct involvement in regulating prices, assisting profit-making for insurers, or providing insurance to consumers, the focus of the NAIC remains on fostering effective regulatory cooperation and uniformity among the states. This helps ensure a more secure and reliable insurance marketplace for both consumers and insurers alike.