What does the National Association of Insurance Commissioners (NAIC) do?

The National Association of Insurance Commissioners (NAIC) plays a crucial role in standardizing regulations for state insurance departments across the United States. It is an organization composed of state insurance regulators that collaborates to establish consistent guidelines and policies, which helps ensure that consumers are protected while maintaining a fair marketplace for insurance. By creating model laws and regulatory frameworks, the NAIC assists individual states in developing their insurance laws, fostering uniformity and clarity in the industry.

The association does not provide Medicare coverage directly nor sell insurance plans to consumers, as these functions are typically managed by private insurance companies. Additionally, while the NAIC may influence regulations surrounding Medicare, it does not have the authority to regulate Medicare premiums; this responsibility lies with federal agencies such as the Centers for Medicare & Medicaid Services (CMS). This differentiation highlights the NAIC's primary focus on regulatory standardization within the insurance sector.