What is the main purpose of the National Association of Insurance Commissioners (NAIC)?

• A. To set insurance premiums nationwide
• B. To provide regulatory standards and coordinate state insurance regulators
• C. To serve as a sales platform for insurance
• D. To manage insurance companies directly

Answer: (B)

The main purpose of the National Association of Insurance Commissioners (NAIC) is to provide regulatory standards and coordinate state insurance regulators. This organization plays a critical role in the insurance industry by creating a framework that helps ensure fair practices and consumer protections across the various states. Through collaboration among state regulators, the NAIC develops model laws and regulations that can be adopted by individual states, promoting uniformity and consistency in insurance regulation.

The NAIC does not set insurance premiums nationwide, which means it does not dictate the specific costs of insurance products to consumers; rather, it focuses on the regulatory aspects. It also does not serve as a sales platform for insurance, as its functions are centered around regulation rather than sales or distribution. Lastly, while the NAIC supports the proper functioning of insurance companies, it does not manage them directly; that responsibility lies with state regulators. Thus, the correct answer reflects the organization's mission in supporting and enhancing the regulatory structure for insurance across the United States.