An insurance company code is a specific code assigned to authorized insurance retailers in the U.S. There are two types of insurance company codes: the NAIC code and the DMV code.
An NAIC insurance company code is a five-digit code that is assigned to an insurance company by the National Association of Insurance Commissioners (NAIC), which is an organization created to conduct regulatory oversight of insurance practices in the U.S.
Because each state has its own insurance commissioner and insurance laws, the NAIC used insurance company codes to can track companies across state lines and helps to establish standards and best practices. The NAIC also provides consumer productions and reports.
Insurance companies’ codes can be used on the NAIC database to do the following:
- View the number of closed complaints
- Report fraud
- Review enforcement actions taken against a company
- Read market conduct examination reports
- Download financial statement data
While you’re required to have liability insurance in your state, you don’t have to use a specific provider. If you have a complaint with your insurance company, contact your state insurance commissioner. These complaints will then be listed and searchable under the insurance company’s code.
NAIC codes don’t only apply to automobile insurance companies. Any American insurance company that underwrites coverage has an NAIC number, including health insurance, life insurance, and fire insurance companies.
Also, a single insurance company may have more than one NAIC number. This happens when the parent company includes multiple underwriting organizations. When this is the case, the NAIC groups each organization into a group code under the parent company to keep things simple.
A DMV code is a three-digit code assigned to insurance companies that are authorized to sell insurance in that state. While NAIC codes are standardized across the nation, DMV codes are specific to individual states and issued by a state’s insurance commissioner, as each state has different insurance laws and regulations.
As a consumer, you do not really need to know which company is assigned which codes while shopping for auto insurance. This is something you do not need to know until after you have purchased insurance.