What is the National Association of Insurance Commissioners (NAIC)?
The National Association of Insurance Commissioners, or NAIC, is a national organization that is made up of each state’s insurance director and commissioner. The goal of the NAIC is to protect the insurance consumers. To do this, the NAIC sets standards of professional conduct for insurance providers, tries to reduce differences among state insurance laws, ensures that insurance agents meet the standards for licensure, and helps regulate the insurance industry.
National Association of Insurance Commissioners – (NAIC)
The National Association of Insurance Commissioners, also known as the NAIC, is comprised of all state insurance directors and commissioners. This is a national organization, but it is made up of state insurance officials. In general, the NAIC is designed to protect the rights of insurance consumers. To reach that end, it has several objectives that it seeks to fulfill. The first is to ensure that insurance providers maintain high standards of professional conduct.
The second objective is to align state laws to limit discrepancy between states. Each state has the right to come up with its own insurance laws. This national organization is in place to help streamline the regulations relating to insurance so that rules don’t differ too much from state to state. It also sets standards for licensure and helps states regulate the insurance industry.
To execute similar objectives as the NAIC, the advertising code and unfair trade practices act has established a uniform set of ethics standards for all individuals licensed as insurance producers.
Provided by: Mometrix Test Preparation
Last updated: 06/27/2018