What is the primary function of the National Association of Insurance Commissioners (NAIC)?

The primary function of the National Association of Insurance Commissioners (NAIC) is to coordinate insurance regulations across different states. The NAIC is a collective of state insurance regulators that works to develop model laws and regulations that can be adopted by individual states to ensure consistency in insurance practices. This harmonization helps address the complexities of regulating insurance, which is primarily handled at the state level in the United States. By facilitating cooperation and information sharing among states, the NAIC aims to enhance the regulatory framework, protect consumers, and ensure the financial stability of insurance markets.

In contrast, setting universal insurance rates could create conflicts with state-specific legal frameworks, and overseeing insurance agent licensing is typically managed at the state level rather than being a function of the NAIC. Additionally, providing legal representation for insurers is outside the scope of the NAIC’s responsibilities, which focus on regulation and standardization rather than legal advocacy.