WASHINGTON (December 4, 2020) - The NAIC Financial Regulation Standards and Accreditation (F) Committee voted to accredit the insurance departments of Idaho, Kentucky, Oklahoma and Vermont. Accredited insurance departments undergo comprehensive, independent review every five years to ensure they meet financial solvency oversight standards.
The NAIC Accreditation Program was established to develop and maintain standards to promote effective insurance company financial solvency regulation. The purpose of the accreditation program is for state insurance departments to meet baseline standards of solvency regulation, particularly with respect to 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. This creates substantial efficiencies for insurance regulators, who are then able to coordinate and rely on each other's work. It also creates far greater efficiencies for insurance companies licensed in accredited states, which are then not subject to financial examinations or other financial oversight by multiple jurisdictions. All fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands are currently accredited.
To become accredited, the state must submit to a full accreditation review. During this review, the team of independent consultants reviews the department's compliance with the standards to develop a recommendation regarding the state's accredited status.