Insurance regulation in a nutshell

Section VI.9.Enforcement Actions

Like insurers, if an insurance intermediary fails to comply with an insurance regulatory requirement in a state, it may be subject to one or more kinds of sanctions in an enforcement action brought by that state’s insurance regulator.
For example, a state insurance regulator may place on probation, suspend, revoke or refuse to issue or renew an insurance producer’s license or may levy a civil penalty or any combination of actions, for violating any insurance laws, or violating any regulation, subpoena or order of the state insurance regulator or of another state’s insurance regulator.¹⁰⁸

ARTICLE VII

The NAIC

Section VII.1.History; Purpose

The NAIC was organized in 1871. One of its first objectives was the adoption by all states of a uniform blank for insurer annual financial reports – a core function still conducted by the NAIC (see Section III.2.).¹⁰⁹
The NAIC was previously an unincorporated association, but was formally organized as a nonstock corporation under Delaware law on October 6, 1999. Its Certificate of Incorporation, Article VI, provides that its purposes include:
. . . to assist state insurance regulators, individually and collectively, in serving the public interest and achieving the following fundamental insurance regulatory goals in a responsive, efficient and cost-effective manner, consistent with the wishes of its members:
(a) Protect the public interest, promote competitive markets and facilitate the fair and equitable treatment of insurance consumers;
(b) Promote, in the public interest, the reliability, solvency and financial solidity of insurance institutions; and
(c) Support and improve state regulation of insurance.
The membership of the NAIC consists of state insurance regulators from the District of Columbia and each of the states of the U.S., including its territories and insular possessions.
The NAIC generally meets quarterly to conduct its affairs. Activities are conducted through committees, subcommittees, task forces and working groups staffed by state insurance regulators and their staffs with final action taken by the NAIC members as a whole. The NAIC has its own staff that supports the activities of the state insurance regulators. A listing of committees and committee charges (current assignments) together with information on current activities is available on the website of the NAIC – www.naic.org (select “Committees and Activities”). The NAIC publishes minutes of its meetings in the form of the NAIC Proceedings, which are available for purchase from the NAIC. NAIC Proceedings are also available from the following subscription services: Westlaw and Lexis.