Which option correctly identifies the National Association of Insurance Commissioners?

Which option correctly identifies the National Association of Insurance Commissioners?

• A. North Carolina Rate Bureau
• B. National Association of Insurance Commissioners
• C. Insurance Services Office
• D. Insurance Producer

Answer: (B)

The question tests your knowledge of what NAIC stands for and what role that organization plays. The National Association of Insurance Commissioners is a nationwide association of state insurance regulators that coordinates regulation across states, develops model laws, and provides regulatory support and data collection to help protect consumers. It’s not a rate-making body, a private analytics company, or an individual who sells insurance. The correct identification is the National Association of Insurance Commissioners because that is the official name of the organization that works with state regulators nationwide. The other options refer to entities with different functions: a rate bureau handles rate filings in a specific state, Insurance Services Office is a private data/rating organization, and an Insurance Producer is a licensed person who sells insurance.

The question tests your knowledge of what NAIC stands for and what role that organization plays. The National Association of Insurance Commissioners is a nationwide association of state insurance regulators that coordinates regulation across states, develops model laws, and provides regulatory support and data collection to help protect consumers. It’s not a rate-making body, a private analytics company, or an individual who sells insurance.

The correct identification is the National Association of Insurance Commissioners because that is the official name of the organization that works with state regulators nationwide. The other options refer to entities with different functions: a rate bureau handles rate filings in a specific state, Insurance Services Office is a private data/rating organization, and an Insurance Producer is a licensed person who sells insurance.