The NAIC's primary role is to provide model laws and regulations to be adopted and enforced by the individual states.

• A. Enforces federal consumer protection
• B. Issues licenses to agents
• C. Provides model laws and regulations to be adopted and enforced by the individual states
• D. Sets reserve requirements for insurers

Answer: (C)

The main concept is that the NAIC creates model laws and model regulations for states to adopt and enforce. The NAIC is a voluntary group of state insurance regulators, not a federal regulator, so its job isn’t to enforce nationwide rules or issue licenses. Licensing of agents is handled by state insurance departments, not the NAIC. Likewise, reserve requirements are set by state statutes and regulatory standards overseen at the state level, not by the NAIC issuing federal rules. States can adopt NAIC model laws and regulations as written or with modifications, and those models then guide how the states regulate insurance within their borders. That’s why providing model laws and regulations for state adoption is the best description of the NAIC’s primary role.