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Its Official: The NAIC is Not a Regulator

The National Association of Insurance Commissioners (NAIC) has acknowledged in a letter to a member of Congress that it is not a “regulatory body,” but acts to provide a “forum and vehicle” for its members who are standard-setters
March 28, 2012

The National Association of Insurance Commissioners (NAIC) has acknowledged in a letter to a member of Congress that it is not a “regulatory body,” but acts to provide a “forum and vehicle” for its members who are standard-setters. The question of just what the NAIC is was raised by Rep. Ed Royce (R-Calif.), a senior member of the House Financial Services Committee, after the NAIC described itself as a “standard-setting organization” rather than a trade group. NAIC President Kevin McCarty said members of the NAIC object to being characterized as a “trade association.” “The NAIC is an association of elected and appointed state-regulatory officials charged with regulating the insurance industry under state law,” he said, adding the NAIC “does play an integral role in the national system of state-based regulation as a forum for standard setting, but it is not a regulator.”

Rep. Royce asked for the clarification within the context of the impending Federal Insurance Office report to Congress on the state of the U.S. insurance-regulatory system. It should be noted that Rep. Royce is no friend of state insurance regulation. He once favorably described an optional federal charter for insurers as a “first step” toward federal regulation of insurance.

Read the entire article on NAIC's role: NAIC Clarifies Role: It’s Not a Regulator (National Underwriter 3/21/12)

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