What is the role of the National Association of Insurance Commissioners (NAIC)?

The role of the National Association of Insurance Commissioners (NAIC) is fundamentally about coordinating insurance regulation among state departments. The NAIC is comprised of state insurance regulators from all 50 states and U.S. territories, and its primary purpose is to create a unified approach to regulatory issues in the insurance industry.

By facilitating collaboration and communication among state regulators, the NAIC helps ensure that regulatory standards and practices are consistent across states, which is essential given that the insurance industry is primarily regulated at the state level. This coordination helps to protect consumers while also fostering a more stable and efficient insurance market. The NAIC develops model laws and regulations which states can adopt, making it easier to address cross-state issues and enhance the regulatory framework.

The other options do not accurately represent the NAIC's role. While the NAIC does work to integrate regulatory frameworks, it does not possess the authority to directly regulate insurers; that responsibility lies with individual state insurance departments. Additionally, the NAIC is not involved in selling insurance, as that is a function reserved for insurance companies and agents.