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

The primary objective of the National Association of Insurance Commissioners (NAIC) is to support state regulation of insurance and promote uniform regulatory practices. The NAIC is an organization made up of state insurance regulators from all 50 states, the District of Columbia, and U.S. territories. Its purpose is to advance regulatory standards and practices to enhance the effectiveness and efficiency of the insurance industry across different states.

By promoting uniformity in regulations, the NAIC helps ensure that insurance companies operate fairly and consistently, which ultimately protects consumers and maintains stability within the insurance market. This cooperative approach allows states to maintain their regulatory authority while benefiting from shared best practices and harmonized standards, which can lead to improved consumer protection and market analysis.

The other options do not accurately capture the core mission of the NAIC. Instead of governing all insurance companies, which is a role played by state regulators, the NAIC acts as a facilitator for state regulatory practices. Setting insurance premium rates is typically a task carried out by individual state agencies, and while the NAIC may provide guidance, it does not set rates itself. Providing insurance to low-income individuals is outside the scope of the NAIC’s primary objectives, as this pertains more to social services and specific insurance programs rather than the