What does the NAIC Non-Admitted Insurance Model Act focus on?

The NAIC Non-Admitted Insurance Model Act primarily focuses on establishing a statutory framework for surplus lines insurance, thereby creating a recognized marketplace for non-admitted or surplus lines insurers. This model act aims to facilitate the regulation of surplus lines while ensuring that consumers have access to insurance coverage that may not be available from admitted insurers.

By setting standards for the use of surplus lines insurance, the act helps define the conditions under which these insurers can operate, thereby promoting transparency and stability in the market. It also outlines the licensing procedures and the responsibilities of surplus lines brokers, ensuring that these professionals adhere to regulations that protect consumers and maintain the integrity of the insurance system.

Thus, the primary goal is to create a systematic and regulated approach to surplus lines insurance, which is critical in allowing policyholders access to necessary coverages that the traditional market may not offer.