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

The primary role of the National Association of Insurance Commissioners (NAIC) is to oversee and regulate insurance practices to ensure consumer protection. The NAIC is a collective organization of state regulators that creates a framework for the regulation of the insurance industry. It sets standards and guidelines related to insurance practices, helping to ensure that consumers are treated fairly and that the insurance market operates efficiently. This involves coordinating regulatory efforts among the states, providing a forum for discussing issues, and developing model laws and regulations that state insurance departments can adopt or adapt as needed.

The association does not provide insurance or sell insurance products, nor does it set prices for insurance nationwide. Instead, it focuses on providing a cohesive regulatory environment that fosters consumer confidence and protects policyholders by ensuring that insurance companies are financially stable and comply with various legal and ethical standards.