The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the
50 states, the
District of Columbia
)
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, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
, and five
U.S. territories
Territories of the United States are sub-national administrative divisions overseen by the federal government of the United States. The various American territories differ from the U.S. states and tribal reservations as they are not sover ...
.
Mission and function
Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. The NAIC is an Internal Revenue Code Section
501(c)(3)
A 501(c)(3) organization is a United States corporation, trust, unincorporated association or other type of organization exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code. It is one of the 29 types of 50 ...
non-profit organization
A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
.
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
The statutory accounting principles are a set of accounting rules for insurance companies set forth by the National Association of Insurance Commissioners. They are used to prepare the statutory financial statements of insurance companies. Statutor ...
(SAP) upon which insurance accounting is based. SAP is often contrasted with
Generally Accepted Accounting Principles
Publicly traded companies typically are subject to rigorous standards. Small and midsized businesses often follow more simplified standards, plus any specific disclosures required by their specific lenders and shareholders. Some firms operate on th ...
(GAAP) and is notable for its 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 every state in which an insurance company writes business.
The NAIC is not a regulator; while its members are the insurance commissioners (i.e., the chief insurance regulators) of each U.S. state and six territories, 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, by promoting uniformity of regulation among the states, it also makes it easier for insurance companies to comply with the laws and regulations in all states in which they do business.
National meetings and publications
The NAIC holds three national meetings a year, in the spring, summer, and fall throughout the United States. Members of state insurance departments, NAIC staff, and insurance industry representatives gather to learn about new, upcoming NAIC initiatives on emerging topics in the field of insurance regulation. During the meeting, committees, task forces, and working groups gather to discuss and review drafts of new and revised model laws, guidelines, and white papers. All amendments and committee actions are recorded in a memorandum and made available on the NAIC website.
Following every national meeting, the official ''Proceedings of the NAIC'' is published. The ''Proceedings'' serve as the permanent record of all NAIC actions, including model laws and regulations, as well as committee and task force minutes and reports. The current and some archival issues of the ''Proceedings'' are publicly available for download in PDF format on the NAIC Publications department website.
History
After ''
Paul v. Virginia
''Paul v. Virginia'', 75 U.S. (8 Wall.) 168 (1869), is a United States corporate law, U.S. corporate law decision by the United States Supreme Court. It held that a corporation is not a citizen within the meaning of the Privileges and Immunities C ...
'', state insurance commissioners formed the National Insurance Convention in 1871 to coordinate; this became the National Convention of Insurance Commissioners and then the National Association of Insurance Commissioners. During the first session, a uniform annual statement was adopted and life insurance companies but not fire insurance companies were required to make reserve deposits to protect their policyholders.
In the second session a model law was passed; many states adopted a standard fire insurance policy known as the New York Standard Fire Policy of 1886.
[ It has been argued that the policy was designed to favor the industry, as it contains various conditions which, if not adhered to, render the policy void.][
]
Organization structure and officers
National Association of Insurance Commissioners was incorporated in Delaware
Delaware ( ) is a state in the Mid-Atlantic region of the United States, bordering Maryland to its south and west; Pennsylvania to its north; and New Jersey and the Atlantic Ocean to its east. The state takes its name from the adjacent Del ...
on October 6, 1999.[National Association of Insurance Commissioners]
. ''Division of Corporations''. Delaware Department of State. Retrieved December 21, 2019. NAIC's central office is in Kansas City, Missouri
Kansas City (abbreviated KC or KCMO) is the largest city in Missouri by population and area. As of the 2020 census, the city had a population of 508,090 in 2020, making it the 36th most-populous city in the United States. It is the central ...
in the Town Pavilion
Town Pavilion is a 38-story skyscraper at 1111 Main Street on the northeast corner of 12th and Main Streets in Downtown Kansas City, Missouri, around the corner from Oppenstein Brothers Memorial Park. The tower occupies the former site of seve ...
, its executive offices are in Washington, D.C.
)
, image_skyline =
, image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
, and the Capital Markets & Investment Analysis Office is in New York City
New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
.[
Officers of NAIC include a ]president
President most commonly refers to:
*President (corporate title)
*President (education), a leader of a college or university
*President (government title)
President may also refer to:
Automobiles
* Nissan President, a 1966–2010 Japanese ful ...
, president-elect
An ''officer-elect'' is a person who has been elected to a position but has not yet been installed. Notably, a president who has been elected but not yet installed would be referred to as a ''president-elect'' (e.g. president-elect of the Unit ...
, vice president
A vice president, also director in British English, is an officer in government or business who is below the president (chief executive officer) in rank. It can also refer to executive vice presidents, signifying that the vice president is on t ...
, and secretary
A secretary, administrative professional, administrative assistant, executive assistant, administrative officer, administrative support specialist, clerk, military assistant, management assistant, office secretary, or personal assistant is a w ...
-treasurer
A treasurer is the person responsible for running the treasury of an organization. The significant core functions of a corporate treasurer include cash and liquidity management, risk management, and corporate finance.
Government
The treasury o ...
, who are elected annually by the membership by secret ballot. To help organize NAIC's efforts, the United States has been divided into four geographic zones: Northeastern, Southeastern, Midwestern and Western; each zone has its own chair, vice chair and secretary who sit on the NAIC's executive committee. NAIC also maintains additional standing committees to address specific charges as approved by NAIC leadership.[Committees, Task Forces, and Working Groups]
. ''National Association of Insurance Commissioners''. Retrieved December 21, 2019.
Presidents
*Chlora Lindley-Myers (2023)
*Dean Cameron (2022)
*David Altmaier (2021)
*Raymond Farmer (2020)
See also
*Insurance Regulatory Information System The Insurance Regulatory Information System (IRIS) is a database of insurance companies in the United States run by the National Association of Insurance Commissioners. IRIS is designed to provide information about insurers' financial solvency
Sol ...
References
External links
*
NAIC's Research Quarterly
free full-text for 1995-2005 of discontinued publication.
LVM Versicherung Bremen
(in German)
{{authority control
Insurance in the United States
Professional associations based in the United States
Government-related professional associations in the United States
Organizations based in Kansas City, Missouri
Insurance organizations
Insurance regulation
Regulation in the United States