DEFINITION of 'Uniform Individual Accident And Sickness Policy Provisions Act'
A regulation that stipulates that individual health insurance policies must contain certain provisions before being valid. The Uniform Individual Accident and Sickness Policy Provisions Act was created by the National Association of Insurance Commissioners (NAIC) and is required by each individual state. This act was created to establish a standard of quality and ensure health insurance policies have an adequate level of coverage by requiring that certain provisions be written into every policy.
BREAKING DOWN 'Uniform Individual Accident And Sickness Policy Provisions Act'
The insurance industry is state-regulated and overseen by the NAIC. The NAIC is made up of elected representatives from each state to ensure that insurance companies are conducting business in a fair and ethical manner. Their goals are to protect the public, promote competition, ensure consumers are being treated fairly, ensure the insurance company is functioning properly, and support and improve regulations. The Uniform Individual Accident and Sickness Policy Provisions Act is just one of many ways the NAIC actions have improved the insurance market as a whole.