Outside of federal and state legislature, insurance companies also abide by non-governmental associations that unify the states and help protect consumers. Industry associations such as the National Association of Insurance Commissioners impose major influence on insurance companies to maintain common industry standards.
A major form of self-regulation, the National Association of State Commissioners (NAIC), is widely recognized as a major influence in the insurance industry. NAIC is not a federal or state legislative body, nor does it regulate insurance law, even though its members are the insurance commissioners (i.e., the chief insurance regulators) of each state in the U.S.
Founded in 1871, the National Association of Insurance Commissioners was created as a non-governmental organization that has since created and maintained a uniform set of laws for states to follow in an attempt to standardize multiple-state insurance laws. Though it has created a set of ‘by-laws’ to help centralize the state-run insurance industry, NAIC, itself, does not actually regulate insurance law. The states regulate their respective insurance laws as well as abide by any relevant federal laws. Read More