Long Term Care Certification Practice Test

The NAIC does NOT have a role in which of the following?

1. Writing and enacting legislation

2. Setting insurance rates

3. Providing consumer education

4. Regulating insurance market practices

The correct answer is: Writing and enacting legislation

The National Association of Insurance Commissioners (NAIC) is primarily an organization of state insurance regulators that creates model laws and regulations aimed at promoting uniformity in insurance regulation across the states. While the NAIC influences policy and legislative frameworks, it does not have the authority to write or enact legislation, as that power belongs to individual state legislatures. The other roles of the NAIC, such as setting insurance rates, providing consumer education, and regulating insurance market practices, involve collaboration and guideline provision rather than formal legislative authority. Therefore, option A accurately describes an area where the NAIC does not have direct responsibility, emphasizing the organization's role as an advisory body rather than a legislative one.