Alabama Department of Insurance Re-Accredited by NAIC

The Alabama Department of Insurance (ALDOI) announced Aug. 31 that it has been re-accredited by the National Association of Insurance Commissioners (NAIC) for a 5-year term. The ALDOI received its first NAIC accreditation in 1995.

“I’m very proud of our accreditation team here at the Department of Insurance,” said Alabama Insurance Commissioner Jim Ridling. “This is an outstanding and well-deserved accomplishment and it is indicative of the high level of professionalism which exists in this Department.”

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.

Accredited state insurance departments undergo comprehensive, independent review every five years to ensure they meet financial solvency oversight standards. The NAIC accreditation program establishes and maintains sound solvency regulation standards. It provides for the effective regulation of multi-state insurance companies with emphasis on each state agency’s:

• Financial solvency laws and regulations;
• Financial analysis and examination capabilities;
• Organizational and personnel practices; and,
• Insurer organizational review, licensing and change of control of domestic insurers.

The state of Alabama is part of the U.S. insurance regulatory framework, a highly coordinated state-based national system designed to protect policyholders and to serve the greater public interest through the effective regulation of the U.S. insurance marketplace, according to a statement from ALDOI.

Through the NAIC, U.S. insurance regulators establish national standards and best practices, conduct peer reviews and coordinate their regulatory oversight to better protect the interests of consumers while ensuring a strong, viable insurance marketplace.

The mission of the ALDOI is to serve the people of Alabama by regulating the insurance industry, providing consumer protection, promoting market stability, and enforcing fire safety standards and laws.