What is the primary financial statement prepared by insurers and required by every state insurance department?

The primary financial statement prepared by insurers and required by every state insurance department is the NAIC Annual Statement. This comprehensive report is developed in accordance with the standards set by the National Association of Insurance Commissioners (NAIC) and is a crucial tool for regulators to assess the financial health and stability of insurance companies.

Each state insurance department requires insurers to file this statement annually, which includes detailed information on the insurer's assets, liabilities, revenue, expenses, and surplus. By mandating this report, regulatory bodies can ensure that insurance companies are financially sound and capable of meeting their obligations to policyholders. The NAIC Annual Statement not only aids in regulatory oversight but also provides valuable data for market analysis and risk assessment, making it an indispensable element of the insurance regulatory framework.