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Regulatory & Compliance

NAIC (National Association of Insurance Commissioners)

The standard-setting organization of U.S. state insurance regulators, which drafts model laws and coordinates cross-state regulation.

Also known as: NAIC

Full Definition

The National Association of Insurance Commissioners (NAIC) is a voluntary body comprising the chief insurance regulators of all 50 states, D.C., and U.S. territories. The NAIC does not directly regulate insurance — the U.S. insurance system is state-based under the McCarran-Ferguson Act — but it drafts model laws and regulations that states commonly adopt. For agents, NAIC-influenced rules include producer licensing standards, suitability in annuity transactions, replacement regulation for life insurance and annuities, and the Unfair Trade Practices Act. The NAIC also operates the State Producer Licensing Database (SPLD) and the NIPR (National Insurance Producer Registry), through which most states process non-resident license applications.

Example

An agent licensed in Texas applies for a non-resident producer license in Florida through NIPR, a NAIC affiliate. Florida's application requirements mirror NAIC model language on CE and background checks.

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