The National Association of Insurance Commissioners (NAIC) Financial Regulation Standards and Accreditation (F) Committee voted to accredit the Alaska, Iowa, Minnesota, and Ohio departments of insurance at the NAIC Summer National Meeting.
The NAIC Accreditation Program demonstrates that state insurance departments meet standards of solvency regulation and provide effective regulation of multi-state insurers. NAIC accreditation allows non-domestic states to rely on the accredited domestic regulator to fulfill a baseline level of effective financial regulatory oversight.
To become accredited, the state must submit to a full on-site accreditation review by a team of independent consultants, who evaluate the department’s capabilities in the following areas:
- Financial solvency laws and regulations.
- Financial analysis and examination capabilities.
- Organizational and personnel practices.
- Primary licensing, redomestications and change of control of domestic insurers.
For a state to remain accredited, an accreditation review must be performed at least once every five years with interim annual reviews. If necessary, key areas for improvement may be provided to the state, and interim follow-up may be required on those areas.