What is the primary role of organizations like ISO and AAIS in the insurance industry?

Organizations like ISO (Insurance Services Office) and AAIS (American Association of Insurance Services) play a crucial role in the insurance industry primarily by developing standardized policy forms and regulations. These organizations assist insurance companies in creating consistent and clear insurance products, which is essential for ensuring that policies are understandable and meet legal and regulatory standards.

By producing standardized forms, ISO and AAIS help streamline the underwriting and claims process for insurers, making it easier for them to offer coverage and for consumers to understand their policies. This standardization also promotes fair competition among insurance providers, as it allows them to offer policies that are easily comparable.

In contrast, the other options mentioned do not accurately describe the primary function of these organizations. Legal representation for insured individuals is typically handled by attorneys, not by these standard-setting organizations. Selling insurance products directly to consumers is the role of insurance agents or brokers. Investigating claims is generally the responsibility of adjusters, who work on behalf of insurers, rather than organizations focused on policy development and standardization. Thus, the focus on developing policy forms and regulations accurately captures the essential role that ISO and AAIS play in the insurance ecosystem.