Each state has established an administrative agency, known as the state insurance
department that is under the direction of an insurance commissioner or a state superintendent
of insurance.
The state insurance department is charged with ensuring that insurers operating within the
state comply with all state insurance laws and regulations.
The National Association of Insurance Commissioners (NAIC) is a non-governmental
organization consisting of the insurance commissioners or superintendents of the various state
insurance departments.
NAIC primary function is to promote the uniformity of state regulation and to pass as model
bill.
A model bill is a sample law to regulate state insurance laws.
Insurance companies operate as corporations.
Corporation is as entity by the authority of an governmental unit which
When the company meet the requirements for incorporation, the state issues a certificate of
incorporation or corporate charter by which the business gains its legal existence as a
corporation.
State insurance department takes care of minimum number of directors, duties of directors and
the rights of shareholders.
The state insurance department issues a certificate of authority or license that grants the
company to conduct business.