Massachusetts Life Producer Practice Exam

Which of the following is NOT an objective of the National Association of Insurance Commissioners?

1. Provide educational resources to consumers

2. Regulate state insurance commissioners

3. Facilitate the forming of insurance policies

4. Promote uniform insurance regulations

The correct answer is: Regulate state insurance commissioners

The National Association of Insurance Commissioners (NAIC) is primarily focused on supporting state insurance regulation rather than regulating the state insurance commissioners themselves. Its objectives include providing educational resources to consumers, facilitating the formation of insurance policies, and promoting uniform insurance regulations across the states to ensure consistency and protect consumers. By choosing to regulate insurance commissioners, that implies an oversight role that the NAIC does not fulfill. Instead, it assists these commissioners by creating model laws and regulations that state insurance departments can adopt, thereby fostering a cooperative approach to insurance regulation. This emphasis on collaboration helps to maintain a stable insurance market and ensures that the needs of consumers are met effectively.