INSURANCE REGULATION

The possibility that an insurance company might not be able to pay legitimate claims to or for its policyholders is the primary concern of the insurance regulators who monitor the financial condition and operations of the insurance companies.

• NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS (NAIC)

Was established to encourage coordination and cooperation among state insurance departments. NAIC consists of Commissioners of Insurance Departments of each state, the District of Columbia and US territories and possessions. The NAIC coordinates insurance regulation activities among the various insurance departments.

A Model Law is a document drafted by NAIC in a style similar to the state statute, that reflects NAIC proposed solutions to the given problem and provides a common basis to the states for drafting laws that affect the insurance industry.

Despite the difference among the state regulations, the primary objectives of insurance regulations are

· Rate Regulation

· Solvency Surveillance

· Consumer Protection

Who Provides Insurance