Who is responsible for assembling the policy forms for insureds? 1) State Insurance Departments 2) NAIC

Who is responsible for assembling the policy forms for insureds?

1) State Insurance Departments

2) NAIC

3) Insurance carriers

4) Insurance producers

Answer: 3) Insurance carriers

Under insurance contracts, which are basically signed by the insureds (policyholders) and the insurers plus carriers, the latter have the responsibility of arranging the policy form for protection. The former represent a comprehensive, in depth outline of the terms, conditions, coverages, exclusions, and so on, of an insurance policy being offered.

Insurance companies have the underwriters, actuaries and legal experts form groups that together in a crafty manner create a policy documents that go in line with the rules and conditions and appropriately represent insurance products. Through this clients are provided with documents that convey a clear and concise meaning, are fully comprehensive and tailor to particular requests of the target market.

Meanwhile the state insurance departments and professional bodies like the National Association of Insurance Commissioners (NAIC) will have guidelines and supervisory duty and while they may not directly issue the actual policy forms that will be used by the policy holders, that role is managed by the insurance carriers themselves.