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National Association of Insurance Commissioners

 
Investment Dictionary: National Association of Insurance Commissioners - NAIC
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A nationwide organization whose main responsibility is to protect the interests of insurance consumers. Some of the main objectives of the NAIC are to provide support to insurance regulators across the country by promoting competitive markets, the improvement of insurance regulations and equitable treatment of insurance consumers.

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The NAIC was created in 1871, and is headquartered in Kansas City, Missouri. Through its many committees, task forces, and working groups, the NAIC attempts to develop and implement laws and regulations that create national standards in an attempt to further benefit insurance consumers.

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Insurance Dictionary: National Association of Insurance Commissioners (NAIC)
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Membership organization of state insurance commissioners. One of its goals is to promote uniformity of state regulation and legislation as it concerns the insurance industry. The NAIC opposes federal regulation of insurance. The organization has achieved considerable national uniformity through the adoption of a uniform blank for insurance companies' annual financial reports, a Zone System for the triennial examinations of insurance companies, a standard valuation law for reserves, standard nonforfeiture benefits, and model laws for valuation of the insurance company's securities.

Wikipedia: National Association of Insurance Commissioners
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The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. The NAIC was formed in 1871.

The current president of the NAIC is New Hampshire Insurance Commissioner[1] Roger Sevigny[2].

The NAIC acts as a forum for the creation of model laws and regulations. Each state decides whether to pass each NAIC model law or regulation, and each state may make changes in the enactment process, but the models are widely, albeit somewhat irregularly, adopted. The NAIC also acts at the national level to advance laws and policies supported by state insurance regulators. The NAIC also is responsible for creating the statutory accounting principles (SAP) upon which insurance accounting is based. SAP is often contrasted with Generally Accepted Accounting Principles (GAAP) and is notable for it's very conservative valuation methods. Additionally the NAIC promulgates the NAIC annual statement which incorporates SAP and must be filed with the Department of Insurance in ever state that the Insurance Company writes business in.

The NAIC is not a regulator; while its members are the insurance commissioners (i.e., the chief insurance regulators) of each state and territory, the NAIC is a non-governmental organization that concerns itself with insurance regulatory matters but does not actually regulate. The states have not delegated their regulatory authority to the NAIC.

Although the NAIC's mandate is to benefit state regulators and insurance consumers by promoting uniform laws and regulations, they also make it easier for insurance companies to comply with the laws and regulations in all states in which they do business.

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