The National Association of Insurance Commissioners (NAIC) is a non profit organization set up in 1871 that works at organizing the various supervisory and regulatory efforts of the different State Insurance Commissioners from around the United States. This non profit initiative is run under the provisions of the Internal Revenue Service Code Section 501(c) (3).
The objective of NAIC is to promote uniform insurance laws and regulations across different states or jurisdictions for the benefit of the insurance consumers.
Though the members of the NAIC are the insurance commissioners or the chief insurance regulators of different states, yet the NAIC is not a regulator. The NAIC is a non governmental initiative concerned with regulatory matters of the insurance sector without actually itself regulating. None of the states have delegated their regulatory authority to the NAIC.
The NAIC is a forum for developing and generating draft of model laws and regulations for the insurance sector. The states usually adopt the model laws with or without variations. The NAIC also formulates proposals for accounting standards for the insurance industries.
