The standards encourage uniform regulation across states, but this can stifle state innovation or flexibility to adapt oversight to local market conditions. Smaller or less complex state markets may be forced into “one size fits all” rules that don’t really fit their risk profile.
Maintaining accreditation is resource-intensive. Smaller state departments may face staffing, training, and technology costs that strain their budgets. This can also create barriers for smaller states to maintain compliance without significant outside assistance.
Since the NAIC is funded heavily by the insurance industry, the standards may reflect industry priorities, and uniform oversight could entrench industry influence at a national scale.
~~
Yes. One of the key pillars of NAIC accreditation is that a state's insurance department must have adequate statutory and administrative authority aligned with NAIC model laws and regulations. Accreditation hinges on having these baseline legal frameworks in place.
Comments
Also is it safe to say on exams that implementing the model laws increases the chances for state to get accredited?
The standards encourage uniform regulation across states, but this can stifle state innovation or flexibility to adapt oversight to local market conditions. Smaller or less complex state markets may be forced into “one size fits all” rules that don’t really fit their risk profile.
Maintaining accreditation is resource-intensive. Smaller state departments may face staffing, training, and technology costs that strain their budgets. This can also create barriers for smaller states to maintain compliance without significant outside assistance.
Since the NAIC is funded heavily by the insurance industry, the standards may reflect industry priorities, and uniform oversight could entrench industry influence at a national scale.
~~
Yes. One of the key pillars of NAIC accreditation is that a state's insurance department must have adequate statutory and administrative authority aligned with NAIC model laws and regulations. Accreditation hinges on having these baseline legal frameworks in place.