What is the main purpose of the National Association of Insurance Commissioners (NAIC)?

The main purpose of the National Association of Insurance Commissioners (NAIC) is to coordinate regulations among state insurance agencies. The NAIC facilitates the development of consistent regulations across states, promoting uniformity in insurance practices. This is important because insurance is primarily regulated at the state level, and the NAIC helps ensure that consumers are protected and that insurance markets operate effectively and efficiently across different jurisdictions. By serving as a forum for state regulators to share information, collaborate on regulatory initiatives, and develop model laws, the NAIC plays a crucial role in maintaining the stability and integrity of the insurance industry.

Other options do not align with the core functions of the NAIC. For example, while consumer protection is an important aspect of insurance regulation, the NAIC itself is not primarily a consumer protection agency. It focuses more on the administration and coordination of regulations rather than directly distributing insurance funds or establishing standards for insurance agents.