The National Association of Insurance Commissioners is an organization that represents insurance commissioners across the country.
In the United States, as the insurance sector is very highly regulated, the National Association of Insurance Commissioners was founded in 1871. The U.S. standard-setting organization is governed by the chief insurance regulators from all over the country, including the 50 states, the District of Columbia, and five U.S. territories, to coordinate the regulation of multistate insurers. It is a nonprofit, nonpartisan organization. It provides the data, expertise, and analysis to the insurance commissioners to effectively regulate the industry and protect consumers. It is also often confused with the North American Industry Classification System, which collects, lists, and analyses data on all types of industries.
The headquarters of the National Association of Insurance Commissioners is in Kansas City, MO, and it has major offices in Washington, D.C., New York, and Missouri.
The NAIC system’s goal is to coordinate regulatory oversight, establish standards and best practices, and conduct peer reviews to standardize insurance regulation across all insurance companies in the United States. NAIC numbers are used for training and education. The system provides programs and technology solutions like industry publications, the Regulator Professional Designation Program, and newsletters.
The NAIC provides online tools and information for consumers as well. The NAIC has developed an “Insure U” consumer education program that provides consumers with basic information about different types of insurance—homeowners, life, auto, and health. This program even helps small businesses by providing information and tips about insuring small businesses.
The NAIC comprises seven different committees which cover different fields like market regulation and consumer affairs, property and casualty insurance, financial regulation standards and accreditation, life insurance and annuities, the financial condition of insurers, health insurance, and managed care, and international insurance relations.
The NAIC also functions as a reference for financial and legal services and as a central source of information. It also creates uniform financial reporting for all insurance companies.
The NAIC also helps to bring insurance companies together and facilitates communication. It makes sure that insurance companies can also payout during disasters by providing the required assistance to make that happen.
The main goals behind the setting up of National Association of Insurance Commissioners are:
- Supporting and improving state regulation of insurance.
- To facilitate the equitable and fair treatment of insurance consumers.
- Protection of the public interest.
- Increasing the solvency, dependability, and financial stability of insurance companies
- Promoting competitive markets to benefit the people of all categories.
- Standardize insurance regulations across the country.
What is an NAIC code?
The NAIC assigns a 5-digit NAIC number/code to each authorized and licensed insurance company serving in the United States. This code represents the primary area of business within the insurance industry. The NAIC code can also be found on the NAIC database, which shows information about the insurance company. The information consists of all the company’s financial data and reports filed by the consumers, the number of closed complaints, or any kind of fraud or actions taken against the company. The NAIC keeps a check on the insurance companies and provides oversight for the entire industry.
The NAIC site also provides a platform for consumers to file complaints against insurance carriers.
For example, Allstate homeowners and auto insurance NAIC numbers typically differ from one type of insurance to the next in many companies. National Association of Insurance Commissioners numbers are different from the same company’s life insurance NAIC number. In addition, Liberty Mutual Insurance has a single code for auto and homeowners, and another for fire insurance coverage. This can sometimes be confusing for consumers, so it is very important to have the accurate NAIC number of a company. A company can apply for an NAIC code on the National Association of Insurance Commissioners website.
Some of the NAIC Codes for large insurance carriers in the US are:
- 22055 Geico
- 23043 Liberty Mutual
- MetLife, Inc. – 13092
- 68241 Prudential Financial
- 19232 Allstate
- 71854 AAA Life
- 78700 Aetna
- 19295 American Family
- 25143 State Farm