Final answer:
The NAIC model laws can be modified by individual states, making the statement false. These model laws are guidelines for standardization, but state regulators have the flexibility to adopt, modify, or ignore them.
Step-by-step explanation:
The statement that the NAIC model laws cannot be modified across the states is actually false. The National Association of Insurance Commissioners (NAIC) provides a set of model laws aimed at standardization of insurance regulation. However, these model laws are not mandatory, and states can choose to adopt them as they are, modify them, or completely ignore them in favor of their state-specific insurance laws.
Due to this flexibility, there can be significant variability in how insurance is regulated from one state to another. While the NAIC's efforts promote some degree of consistency, the ultimate control lies with individual state governments to determine the extent to which they will follow or deviate from these models.