5.3 Flashcards
The various models of law established by the NAIC are designed to ______.
bring uniformity between the Federal Government and the various state insurance laws.
The NAIC is not a federal or state legislative body, nor does it regulate insurance law, even though its members are the ______.
insurance commissioners 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 ______. 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.
standardize multiple-state insurance laws
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.
insurance Commissioners from each of the 50 states, the District of Columbia, and surrounding U.S. territories
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.
uniformity throughout the insurance industry
