Insurance companies are closely monitored by the states, with each state having its own insurance agency or regulator. These regulators are members of the National Association of Insurance Commissioners (NAIC), an organization that stretches across all 50 states, the District of Columbia and five U.S. territories.
The NAIC helps to keep insurance companies from misleading or deceiving consumers, as well as helps ensure the insurance industry remains financially strong. The organization meets regularly to exchange information and establish insurance model rules. In fact, many of our nation’s insurance laws and regulations take shape because of the NAIC’s recommendations.
However, because each state can have its own unique set of regulations and mandates for insurance coverage, companies who do business in several states can find themselves facing many different laws and regulations. Keeping up-to-date and compliant with so many different states can add complexity and cost to the way companies do business.
Additional Information
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