What is the NAIC?






If you’ve ever thought it would be nice to have an organization that looks out for your needs and wants, in regards to car insurance — the NAIC answers that request and much more. In the following information, we will explain more about the NAIC and discuss what this non-profit organization does in detail.

Quick Description

Briefly, the NAIC, otherwise known as The National Association of Insurance Commissioners performs as a supervisor and non-governmental regulator for state insurance commissioners all across the United States (including, all 50 states, the District of Columbia and all 5 territories). The NAIC operates as a forum where model laws and regulations are made. However, each individual state determines whether they will pass the model laws and regulations set forth by the NAIC. The states are presented with the models and they are able to change or adjust the laws/regulations for each state. Whether the laws are modified or stay the same, they are often accepted/adopted by the state insurance regulators and regarded as law.

Responsibilities

The NAIC assists insurance regulators in every state, at an individual and group level by performing several duties and responsibilities. The National Association of Insurance Commissioners performs five separate functions:

  • Protecting the public interest
  • Ensuring the fair and unbiased treatment of insurance consumers
  • Promoting competitive markets
  • Improving the regulation of insurance for each state by providing uniform regulation, when uniformity is required — especially for insurance providers who provide insurance for multiple states
  • Supporting the professional reliability and financial strength of insurance companies

Consumer Protection

This consumer “watchdog” organization was formed in 1871. The NAIC has offices in New York, Kansas City, MO and Washington D.C., which provide services and perform specific responsibilities and are designed to assist insurance commissioners, as well as, consumers.

Functions

The majority of NAIC workers are based in the Kansas City, Missouri office. Kansas City is the home of several different office functions including:

  • ·The Executive Division – includes the Business Strategy Risk Management, the Compliance Department and the Finance Department
  • ·The Communications/Media Relations Division – provides communications through news releases, electronic and internet-based material, media relations and promotes consumer education through Insure U
  • ·Human Resources and Internal Services Department – includes copy and mail services, records management, and other human resource activities
  • ·The Information Systems Division – provides technical information to regulators, which helps promote system standardization and shared regulatory information
  • ·Insurance Products and Services Division – handles marketing and provides financial data to external customers and regulators, as well as, overseeing the System for Electronic Rate and Form Filing (SERFF) and the SBS, otherwise known as the State-Based Systems Program
  • ·Legal Division – Handles research and analytics related to insurance law. In addition, this division also works as in-house counsel to the NAIC, as well
  • ·Regulatory Services Division – Provides support to staff and other members for regulatory information related to Market Regulation, Financial Regulatory Services, Actuarial & Statistical Services
  • ·Member Services Division – This division offers several options to staff and members by providing Library Resources, Meeting Planning and Education/Training
  • ·Technical Services Division – Technical services provides technology support with StateNet, MyNAIC and I-Site.The NAIC’s help desk is available to those needing support during the hours of 8 am to 5 pm (Central) Monday-Friday.

The NAIC is designed to provide support, information and regulatory assistance to insurance consumers. It’s comforting to know that there is an organization out there, that is working for you and your specific insurance needs.


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