Interstate Insurance Product Regulation Compact
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| Interstate Insurance Product Regulation Compact | |
| Formation date: | 2006 |
| Member jurisdictions: | 46 |
| Issue(s): | Industry regulation |
| Compact website | |
 | |
The Interstate Insurance Product Regulation Compact is an interstate compact among 44 states, Washington D.C., and Puerto Rico. Only California, Delaware, Florida, New York, North Dakota and South Dakota are not members. The compact created the Interstate Insurance Product Regulation Commission (IIPRC) to serve "insurance regulators, consumers and providers by improving the efficiency and effectiveness in the ever-changing insurance marketplace."[1]
History
In 2000, members of the National Association of Insurance Commissioners (NAIC) adopted The Statement of Intent: The Future of Insurance Regulation. The document identified, among other things, the need for a more streamlined way to file, review, and approve products.[1]
The first step in that process was CARFRA (Coordinated Advertising, Rate and Form Review Authority) - a "voluntary pilot program designed to allow regulators to set national product standards and create a single point of filing for designated insurance products, such as life insurance and annuities." Although CARFRA made progress in developing standards, the lack of accompanying changes in state laws and regulations (and corresponding hesitancy of individual companies to file with CARFRA) made any real permanent change impossible.[2]
In 2002, NAIC worked a working group to develop model legislation for an interstate compact that would "develop national uniform standards that would be applicable in multiple states." The initial product of that group was introduced in December 2002 as a jumping off point of sorts for state legislators, attorneys general, governors and other stakeholders as they began to refine the legislation. In July 2003, the NAIC adopted eight amendments to finalize the model legislation.[2]
Governance
The compact took effect when the first two states, Colorado and Utah enacted compact legislation in their respective legislatures. The Interstate Insurance Product Regulation Commission, though, did not officially come into being until May 2006, when 40% of the insurance premium volume nationwide (26 states) adopted the compact.[3]
The commission is composed of one commissioner from each of its 46 member jurisdictions and is organized into several member and advisory committees. Under the compact, the commission has the power to:
- develop uniform standards for product lines
- receive and provide prompt review of products filed therewith, and
- give approval to those product filings satisfying applicable uniform standards[3]
Text of the compact
The legislature of each member state passes the laws with certain modifications, but the core of the legislation remains the same.
See also
External links
- The Council of State Governments - National Center for Interstate Compacts
- Interstate Insurance Product Regulation Compact
- Interstate Insurance Product Regulation Commission
- National Association of Insurance Commissioners
Footnotes
- ↑ 1.0 1.1 Insurance Compact.org, "Main page," accessed February 19, 2021
- ↑ 2.0 2.1 Insurance Compact.org, "A summary of the IIPRC background and development," accessed January 5, 2012
- ↑ 3.0 3.1 Interstate Insurance Product Regulation Commission, "Frequently asked questions," accessed February 3, 2016
