Arlington, VA – The American Consumer Institute (ACI) is pleased to announce the release of a new comprehensive analysis of the National Association of Insurance Commissioners (NAIC), a U.S. standard-setting and regulatory support insurance organization. This analysis raises questions about the organization’s tax status, regulatory activities, influences, operational practices, and spending habits.

To improve transparency and accountability, ACI recommends the following reforms:

  1. Require the NAIC to file an annual Form 990 with the IRS like other nonprofits – This would provide the public with detailed information about the NAIC’s operations, revenue sources, and financial condition.
  2. Subject the NAIC to the same transparency requirements as government agencies if claiming a quasi-governmental status – These must include the Administrative Procedure Act and Freedom of Information Act.
  3. Independent Third-Party Audit – A comprehensive audit should be conducted to review the NAIC’s operations, particularly the potential conflicts of interest in its revenue-generating activities. The audit should also examine governance practices and provide recommendations for ensuring that state governments retain the ability to override NAIC policies.

These reforms will ensure that the NAIC operates in a manner that is consistent with its tax-exempt status and does not abuse its position of influence within the insurance industry.

Read the full report below.

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The Troubling Case of the NAIC and Questions Concerning Transparency and AccountabilityDownload
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Nate Scherer is a Policy Analyst with the American Consumer Institute where he researches and writes about a diverse range of consumer issues. He previously served as a Policy Analyst at the Reason Foundation and has also worked for several other nonprofits including the Texas Public Policy Foundation and the Leadership Institute. More recently, he worked an educator for Fairfax County Public Schools and performed research for Georgetown University’s Edunomics Lab. He possesses a Master of Arts in Teaching in Secondary Education, Social Studies, and has a Bachelor of Arts in Politics. He currently resides in Falls Church, VA.