The National Association of Insurance Commissioners (NAIC) is an organization that works on setting uniform policies regarding insurance. The insurance regulators from all states, the District of Columbia, and U.S. territories are part of the NAIC. This non-profit organization provides support to the insurance regulators so they can better serve the insurance consumers in their jurisdictions.
Insurance is regulated at the state level. Insurance regulators are the state-level bodies in charge of setting regulations for the state. The goal of the insurance regulatory system is to protect insurance consumers by providing guidelines for insurance companies operating in the state.
The National Association of Insurance Commissioners was formed in 1871 by the state insurance regulators. It was developed because of a need for more uniform regulation of insurance companies operating in multiple states. The original focus of the group was to enact a consistent method of reporting financial information from insurance companies.
Participation in the NAIC is voluntary for insurance regulatory officials. The organization offers classes and training courses for insurance regulators to provide education on insurance topics. It also created the Insurance Regulator Professional Designation Program to provide specific instruction for regulators.
The National Association of Insurance Commissioners receives its funding from various sources, including the states that choose to participate. The states pay membership fees to cover some of the NAIC's costs. Its funding also comes from various fees for services provided by the organization, and the sale of publications and data.
Each year, the National Association of Insurance Commissioners meets four times. The location changes with each meeting, but the NAIC tries to hold a meeting in each of the four areas of the country each year. These bring together the insurance regulators to discuss insurance issues with a national impact. Policies are established to regulate the national insurance issues when they are deemed appropriate. While some insurance topics are better suited for a state level, other issues need a national uniform policy established.
Insurance regulators receive support from the NAIC in many forms. In addition to education programs, the NAIC provides regular communication to regulators regarding insurance company financial information and insurance law changes. The state regulators can get advice on insurance law issues. States also receive technical support from the organization.
The National Association of Insurance Commissioners also provides education and support to insurance consumers. The Insure U program aims to educate consumers on insurance options and insurance topics in general. The program covers health, automobile, homeowners, renter's, and life insurance, as well as a special section for small business owners.
