Arkansas Life and Health Insurance Practice Exam 2025 - Free Life and Health Insurance Practice Questions and Study Guide

Question: 1 / 400

What authority does the National Association of Insurance Commissioners (NAIC) have over insurance regulation?

Direct legal authority

Limited legal authority

No legal authority over insurance regulation

The correct answer is C. No legal authority over insurance regulation. The National Association of Insurance Commissioners (NAIC) is a standard-setting and regulatory support organization created and governed by the chief insurance regulators from all 50 U.S. states, the District of Columbia, and five U.S. territories. While the NAIC plays a significant role in setting insurance industry standards and best practices, it does not have direct legal authority over insurance regulation. Instead, the NAIC provides a forum for regulators to coordinate their regulatory oversight and develop model laws and regulations that individual states may choose to adopt. This decentralized approach reflects the U.S. system of state-based insurance regulation, where each state government retains the legal authority to regulate insurance within its borders.

Get further explanation with Examzify DeepDiveBeta

Full legal authority

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy