5.3 Flashcards

1
Q

The various models of law established by the NAIC are designed to ______.

A

bring uniformity between the Federal Government and the various state insurance laws.

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2
Q

The NAIC is not a federal or state legislative body, nor does it regulate insurance law, even though its members are the ______.

A

insurance commissioners of each state in the U.S.

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3
Q

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 ______. Though it has created a set of ‘by-laws to help centralize the state-run insurance industry, the NAIC, itself, does not actually regulate insurance law. The states regulate their respective insurance laws as well as abide by any relevant federal laws.

A

standardize multiple-state insurance laws

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4
Q

The NAIC is composed of ______. These members are either elected to their post, or appointed by their states’ governor and are represented by an executive committee comprised of the President, President-Elect, Vice President and Secretary-Treasurer of the NAIC. All members of the NAIC elect these governing members on an annual basis.

A

insurance Commissioners from each of the 50 states, the District of Columbia, and surrounding U.S. territories

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5
Q

The NAIC’s ‘by-laws’ promote ______ and enable insurance companies to better comply with the laws and regulations set forth in all states in which they conduct insurance business.

A

uniformity throughout the insurance industry

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