What is the NAIC?

The National Association of Insurance Commissioners (NAIC) is indeed an association that provides resources and support for state regulators. It plays a crucial role in standardizing insurance regulations across different states, which allows for a more coherent regulatory approach, facilitating cooperation among state insurance regulators. The NAIC develops model laws and regulations that states can adopt, assisting them in addressing various insurance-related issues more effectively.

The NAIC does not enforce laws directly; rather, it serves as a collaborative body for state-level authorities, ensuring that they have the necessary tools, information, and guidance to regulate the insurance industry effectively. This collaborative approach helps maintain a balance between consumer protections, industry solvency, and competitive market conditions, which is essential for a well-functioning insurance system.