NAIC Illustrations

What is the NAIC Illustration Model Regulation? #

Big data is transforming the way life insurers assess risk, set policy terms, and communicate with policyholders—but ensuring transparency in policy illustrations remains a regulatory priority. The NAIC Illustration Model Regulation is a standardized framework established by the National Association of Insurance Commissioners (NAIC) to govern how insurers present projected policy values to consumers. Designed to prevent misleading representations, the regulation mandates clear, accurate, and consistent illustrations of life insurance policies. By requiring insurers to disclose key assumptions—such as interest rates, premiums, and potential returns—the model regulation helps consumers make informed decisions while maintaining industry-wide accountability.