Interstate Insurance Product Regulation Compact Operational Plans Early 2007
by Rose M. LeiterAugust 2006
Within three years after adoption, 27 jurisdictions have signed the Interstate Insurance Product Regulation Compact into law. As the operational goal for the Compact was 26 jurisdictions, the first meeting of the Compact’s Commission was held on June 13, 2006. The Compact’s operations and processes will be put into place within the coming months, and plans are to be fully operational in early 2007.
The Interstate Insurance Product Regulation Compact allows the collaboration of participating states to provide uniform national product standards for life, annuities, disability income, and long term care insurance products. It also provides a central filing point for these products.
The Compact benefits consumers, insurers, and state regulators. Consumers will be protected by high product standards. Insurers will benefit with speed to market along with fairer competition with banks and securities firms. State regulators will be able to work together providing higher quality and increased efficiency of the insurance products.
The 27 jurisdictions that have signed the Compact into law include Alaska, Colorado, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Minnesota, Nebraska, New Hampshire, North Carolina, Ohio, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, Texas, Utah, Vermont, Virginia, Washington, West Virginia and Wyoming. The Compact is currently pending with 10 other jurisdictions.