Tennessee Receives Accreditation from National Insurance Organization

NASHVILLE – The Tennessee Department of Commerce and Insurance (TDCI) is proud to announce that Tennessee has again received accreditation from the National Association of Insurance Commissioners (NAIC).

As part of the NAIC’s accreditation program, state insurance departments must undergo comprehensive, independent review every five years to ensure they meet financial solvency oversight standards.

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. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

The NAIC’s 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’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 accreditation program is a key tool in promoting and maintaining state-based regulation of the insurance industry. The creation of the accreditation program was prompted by a congressional report that highlighted weaknesses in state-based regulation. Since then, the program has aided states in correcting these deficiencies. States that maintain their accredited status demonstrate that the current means of regulatory monitoring is intact and continues to work effectively. As of August 2015, there are a total of 52 jurisdictions that are accredited, including all 50 states, the District of Columbia and Puerto Rico.

 “Accreditation gives Tennesseans confidence that this department is meeting NAIC’s rigorous standards,” said TDCI Commissioner Julie Mix McPeak. “I congratulate our team on the hard work needed to meet the accreditation standards.”

Tennessee’s accreditation was finalized after a recent vote by NAIC’s Financial Regulation Standards and Accreditation Committee. The committee also voted to accredit New Jersey and New Mexico.

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