Tennessee Insurance Dept. Receives NAIC Accreditation

The Tennessee Department of Commerce and Insurance (TDCI) has received accreditation from the National Association of Insurance Commissioners (NAIC).

The NAIC is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review and coordinate their regulatory oversight.

TDCI’s Division of Insurance regulates approximately 1,917 insurance companies, 1,367 related entities and more than 232,000 insurance agents.

“Accreditation from the NAIC gives Tennessee policyholders confidence that Tennessee’s domestic insurance companies are being continually analyzed under a robust, risk-focused approach that results in more financially sound insurance companies operating in our state,” said TDCI Commissioner Carter Lawrence. “Tennessee insurance companies can conduct business knowing their insurance industry is well-regulated in conformance with national and state standards and best practices while maintaining a level playing field.”

As part of the NAIC’s Accreditation Program, state insurance departments must undergo comprehensive, independent review every five years to ensure they meet financial solvency oversight standards. During this review, the team of independent consultants reviews the department’s compliance with the standards to develop a recommendation regarding the state’s accreditation status.

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.

The accreditation 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,” TDCI said in a statement.

All fifty states, the District of Columbia and the U.S. Virgin Islands are currently accredited.

Source: Tennessee Department of Insurance

Topics Tennessee