Montana State Life Insurance Practice Exam

Who is responsible for preparing the Buyer's Guide?

1. NAIC (National Association of Insurance Commissioners)

2. SEC (Securities and Exchange Commission)

3. FHA (Federal Housing Administration)

4. NAFIA (National Association of Financial Insurance Agents)

The correct answer is: NAIC (National Association of Insurance Commissioners)

The Buyer's Guide, which is an informational tool designed to assist consumers in understanding life insurance products, is primarily prepared by the National Association of Insurance Commissioners (NAIC). The NAIC is a collective organization of state insurance regulators in the United States, and it develops model regulations that help ensure that consumers have access to the necessary information related to insurance products. By creating the Buyer's Guide, NAIC supports consumer education and promotes a better understanding of life insurance policies, making it easier for potential buyers to make informed decisions. The other organizations listed, such as the Securities and Exchange Commission (SEC), the Federal Housing Administration (FHA), and the National Association of Financial Insurance Agents (NAFIA), focus on different aspects of financial regulation and insurance but are not responsible for preparing the Buyer's Guide. The SEC regulates securities markets, the FHA deals with home mortgage insurance, and NAFIA is involved in representing financial agents rather than creating consumer education materials like the Buyer's Guide.