4
QuizMultiple Choice

Government Regulation of Insurance

Question 4 • (AG Q4) Financial Literacy: 25-26 (JRush)

Insurance company solvency standards are mainly the responsibility of _____.

Answer
A
each individual insurance company
B
the governor of the state
C
the Federal Government
D
the National Association of Insurance Commissioners

Explanation

The National Association of Insurance Commissioners (NAIC) develops model laws and standards that states use to oversee insurers’ financial solvency. Insurance regulation is carried out mainly by state insurance departments, not by the federal government or a governor acting alone. Therefore, the best choice is the National Association of Insurance Commissioners.

AI-written and checked against the verified answer.

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