The Tennessee Department of Commerce and Insurance (TDCI) has received accreditation from the National Association of Insurance Commissioners (NAIC).
The NAIC is the US standard-setting and regulatory support organisation created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five US territories. To receive NAIC’s accreditation state insurance departments must undergo comprehensive, independent review every five years to ensure they meet financial solvency oversight standards.
The accreditation programme was established to maintain standards and promote effective insurance company financial solvency regulation. It ensures state insurance departments meet baseline standards of solvency regulation, particularly with respect to regulation of multi-state insurers.
It also allows non-domestic states to rely on the accredited domestic regulator to fulfill a baseline level of effective financial regulatory oversight, making regulation more efficient. It means insurance companies licensed in accredited states are not subject to financial examinations or other financial oversight by multiple jurisdictions.
TDCI’s division of insurance regulates approximately 1,917 insurance companies, 1,367 related entities and more than 232,000 insurance agents.
TDCI Commissioner Carter Lawrence explained that NAIC accreditation gives policyholders in the state confidence that insurance companies are being analysed under an appropriately robust, risk-focused approach.
“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,” he said.
Tennessee Department of Commerce and Insurance, TDCI, NAIC, National Association of Insurance Commissioners, Carter Lawrence