As a result, GAO said, few states have formal programs for market analysis and examinations are used inconsistently, and in some cases, infrequently.

Moreover, GAO said, states have no generally accepted criteria for determining which companies to examine or which type of examination to perform.

GAO noted that the NAIC has tried to find ways to facilitate uniformity in state market analysis programs and promote interstate cooperation in market conduct examinations.

However, despite these efforts, progress has been slow, GAO said.

Even though NAIC developed a handbook for market conduct examiners, states are not required to use it and it does not contain standards on when to conduct examinations or how to choose companies, GAO said.

Moreover, GAO said, while NAIC developed an Examination Tracking System, which is a computer database aimed at helping states coordinate examinations, states have not used the system widely.

Thus, GAO said, the system has not improved efficiency as quickly as had been hoped.

GAO also noted that NAIC recently announced a major new initiative to improve insurance regulators' use of market analysis and market conduct examinations.

However, GAO said, because progress in the past has been slow, results from the new initiative are uncertain.

The report was requested by House Financial Services Committee Chairman Mike Oxley, R-Ohio.