WASHINGTON, D.C. — The National Association of Insurance Commissioners (NAIC) Financial Regulation Standards and Accreditation Committee has renewed the Maryland Insurance Administration’s accreditation for the next five years.
Accredited insurance departments across the country undergo comprehensive, independent review every five years to ensure they meet financial solvency oversight standards.
“Accreditation is critical to efficient solvency regulation and the ability of the Administration to coordinate seamlessly with other states,” said Maryland Insurance Commissioner Kathleen A. Birrane. “We are gratified that we received the highest possible ratings and were accredited for the full five-year period with no required interim reviews. This is a testament to the strength of the Administration’s Examination and Audit Unit and the very experienced and sophisticated experts that have day-to-day responsibility for the fiscal oversight of Maryland’s $29 billion insurance market.”
The NAIC Accreditation Program was established to develop and maintain standards to promote effective insurance company financial solvency regulation. The purpose of the accreditation program is for state insurance departments to meet baseline standards of solvency regulation, particularly with respect to regulation of multi-state insurers.
NAIC accreditation allows non-domestic states to rely on the accredited domestic regulator to fulfill a baseline level of effective financial regulatory oversight. This creates substantial efficiencies for insurance regulators, who are then able to coordinate and rely on each other's work. It also creates far greater efficiencies for insurance companies licensed in accredited states, which are then not subject to financial examinations or other financial oversight by multiple jurisdictions. Insurance departments in Oregon and Washington state also received accreditation this week.
To become accredited, the state must submit to a full on-site accreditation review. During this review, a team of independent consultants reviews the department's compliance with the standards to develop a recommendation regarding the state's accredited status.
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