This investigative report finds that the National Association of Insurance Commissioners (NAIC) may be overcharging insurance companies who pass these costs along to consumers in the form of higher prices. State laws require companies to electronically file financial and rate information with the NAIC, who set filing fees without state approval or review. Effectively, states have given away their taxing authority to a nonprofit corporation. By one measure, the NAIC fees produce $8 of revenue for every $1 of cost, a profitable venture for the nonprofit corporation.
Insurance commissioners frequently call on the companies they regulate to refund any and all excessive fees. Now, it is time for the NAIC should do the same and give back to the public. So, what does the NAIC do with these excessive revenues? Read this report, available here.