Insurance regulation in a nutshell

Section VII.2.Model Law and Regulations

One of the key activities of the NAIC is the adoption of model laws and regulations, and amendments thereto. These model laws and regulations (many of which are referred to in this paper) are recommended for each state to enact (through their state legislatures) or promulgate (as regulations to the extent they may be promulgated by a state insurance regulator).
The NAIC publishes a multiple-volume set of model laws and regulations titled “Model Laws, Regulations and Guidelines” which collects all current model laws and regulations. Each model law or regulation includes (i) the text of the model law or regulation together with its history (citing to the NAIC Proceedings), (ii) a listing of states that have enacted the model or a related law, and its citation, and (iii) usually a history of the model law or regulation prepared by the NAIC staff.

Section VII.3.Statutory Financial Statement Forms

The unaudited annual and quarterly financial statements filed by licensed insurers with state insurance regulators in the states in which they are licensed are maintained by the NAIC (see Section III.2.). The subcommittee charged with this task is the Financial Condition (E) Subcommittee, which conducts its work through the Accounting Practices and Procedures (E) Task Force and its Blanks Working Group (the form of financial statement is often called the “annual statement blank”).

Section VII.4.Statutory Accounting Practices

The statutory accounting practices used to complete the unaudited annual and quarterly financial statements (see Section III.2.) and audited financial statement (see Section III.3.) of U.S. insurers are also maintained by the NAIC. The subcommittee charged with this task is the Financial Condition (E) Subcommittee, which conducts its work through the Accounting Practices and Procedures (E) Task Force and its Statutory Accounting Practices Working Group. The statutory accounting practices are republished each March as the “Accounting Practices and Procedures Manual.” For subscribers to the Accounting Practices and Procedures Manual, interim updates are available on the NAIC’s website, www.naic.org.