Legal & Regulatory
Model Law (NAIC)
NAIC model laws are standardized legislative and regulatory templates designed to promote uniformity in state insurance regulation, covering everything from claims practices to solvency requirements.
Last reviewed: May 2026 · Editorial methodology
Definition
An NAIC Model Law (or Model Regulation) is a standardized legislative or regulatory template drafted by the National Association of Insurance Commissioners (NAIC) and made available to state legislatures and insurance departments for adoption as state law or regulation. Because insurance in the US is primarily regulated at the state level, the NAIC's model law process is the primary mechanism for coordinating regulatory consistency across jurisdictions. Model laws are developed through NAIC working groups with input from regulators, consumer advocates, and industry representatives, and are approved by the full NAIC membership. States are not required to adopt model laws, but adoption facilitates insurer compliance across multiple states and is sometimes incentivized through federal policy (as with the Gramm-Leach-Bliley Act's privacy provisions). Key NAIC model laws include the Unfair Claims Settlement Practices Model Act (which forms the basis of bad faith law in most states), the Insurance Data Security Model Law (addressing cybersecurity requirements for insurers), and the Life Insurance Policy Lapse and External Review Model Act. As of 2025, the NAIC's model law library contains over 250 model laws and regulations covering virtually every aspect of insurance regulation.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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