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 provide a framework for insurance regulation. This organization plays a crucial role in standardizing insurance laws and regulations across different states in the U.S. by promoting cooperation among state insurance regulators. This collaborative effort helps ensure that states can work together to address regulatory challenges, enhance market stability, and protect consumers effectively.

The NAIC develops model laws and regulations, which states can adopt to create a more uniform system of insurance regulation. This fosters consistency in oversight and helps maintain the financial stability of insurance companies, ultimately benefiting policyholders by ensuring that insurers remain solvent and capable of meeting their obligations.

With this solid regulatory framework, the NAIC supports states in their efforts to regulate the insurance market effectively, ensuring that consumer interests are safeguarded while promoting a fair and competitive market environment.