Long Term Care Certification Practice Test

Which of the following individuals would NOT be permitted to join the NAIC?

1. A state insurance commissioner

2. A federal official

3. A licensed insurance agent

4. A member of the public

The correct answer is: A federal official

The National Association of Insurance Commissioners (NAIC) is primarily composed of state insurance regulators and is focused on promoting uniformity and coordination among state insurance departments. Members typically include state insurance commissioners and regulators who make decisions that influence how insurance is regulated in their respective states. A federal official does not have a role in state-based regulation and, therefore, would not be permitted to join the NAIC. The association's purpose is closely tied to state-level governance and regulatory frameworks. Federal officials operate within a broader federal jurisdiction that does not align with the NAIC’s mission of state-based insurance regulation. In contrast, state insurance commissioners are directly involved in managing and regulating insurance within their states and thus are members of the NAIC. A licensed insurance agent is also relevant, as agents operate under state regulation, making their participation in discussions that the NAIC undertakes crucial. While a member of the public might have an interest in insurance regulation, they do not possess the professional or regulatory background that would qualify them for membership in an organization primarily comprised of state officials. Nonetheless, their involvement may be more limited compared to the other listed roles.