The National Association of Insurance Commissioners (NAIC) Financial Regulation Standards and Accreditation Committee voted to accredit departments in Connecticut, Massachusetts, New York and the U.S. Virgin Islands at the NAIC Fall National Meeting.
The NAIC Accreditation Program demonstrates that state departments of insurance 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 department of insurance must agree to an on-site accreditation review by independent consultants who evaluate the department’s:
- Financial solvency laws and regulations.
- Financial analysis and examination capabilities.
- Organizational and personnel practices.
- Primary licensing, re-domestications, and change of control of domestic insurers.
Accredited insurance departments undergo an independent review every five years to remain accredited, with interim annual reviews. If necessary, key areas for improvement may be provided to the state, and interim follow-up may be required in those areas.