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Interstate Insurance Product Regulation Compact 20

Interstate Insurance Product Regulation Compact

2010 Legislation

Last updated: November 22, 2010

NCSL Staff Contact: Heather Morton, Denver, (303) 364-7700

States are committed to pursuing modernization of state insurance regulation and they are adopting a streamlined system of product regulation over four product lines: life insurance, annuities, disability income, and long-term care insurance. Through the compact, states are creating uniform product standards, which allows insurers to market insurance products more quickly since they will not have to meet state-specific standards.

Since meeting its operational threshold in May 2006, the Interstate Insurance Product Regulation Compact (IIPRC) now has 36 member states representing over half of the premium volume nationwide.

In the 2010 legislative session, five bills in four states were introduced regarding the IIPRC. Illinois enacted legislation, joining the IIPRC.

FL | IL | NJ | NY
STATES
BILL SUMMARY
Alabama
none
Alaska
none
Arizona
none
Arkansas
none
California
none
Colorado
none
Connecticut
none
Delaware
none
District of Columbia
none
Florida

S.B. 2456
Died in committee 4/30/10
Creates the Interstate Insurance Product Regulation Commission. Provides responsibilities of the commission. Specifies the commission as an instrumentality of the compact states. Provides for venue. Specifies the powers of the commission. Provides for organization of the commission. Provides for membership, voting, and bylaws. Designates the commissioner of the Office of Insurance Regulation as the representative of Florida on the commission.

Georgia
none
Guam
none
Hawaii
none
Idaho
none
Illinois

S.B. 2544
Veto overridden 11/30/10, Public Act 96-1481
Creates the Interstate Insurance Product Regulation Compact. Provides that the purposes of the Compact include the promotion and protection of the interests of consumers of individual and group annuity, life insurance, disability income, and long-term care insurance products. Creates the Interstate Insurance Product Regulation Commission to develop uniform standards for insurance products covered under the Compact, establish a central clearing house to receive and provide prompt review of insurance products covered under the Compact, provide appropriate regulatory approval, and improve coordination of regulatory resources and expertise between state insurance departments.

Indiana
none
Iowa
none
Kansas
none
Kentucky
none
Louisiana
none
Maine
none
Maryland
none
Massachusetts
none
Michigan
none
Minnesota
none
Mississippi
none
Missouri
none
Montana
none
Nebraska
none
Nevada
none
New Hampshire
none
New Jersey

A.B. 483
Sent to governor 11/22/10
S.B. 175
Substituted 10/18/10
This bill, the "Interstate Insurance Product Regulation Compact," is designed to: promote and protect the interests of consumers of individual and group annuity, life insurance, disability income, and long-term care insurance products; develop uniform standards for these insurance products; establish a central clearinghouse to receive and provide prompt review of insurance products covered under the compact and, in certain cases, advertisements related to those insurance products submitted by insurers authorized to do business in one or more compacting states; give appropriate regulatory approval to those product filings and advertisements satisfying applicable uniform standards; and improve coordination of regulatory resources and expertise among state insurance departments regarding the setting of uniform standards and review of insurance products covered under the compact. Under this bill, any state is eligible to become a compacting state, and the compact shall become effective and binding upon legislative enactment of the compact into law by two compacting states. The bill provides that the compacting states shall establish a joint public agency known as the "Interstate Insurance Product Regulation Commission." Under the bill, the commission shall 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 as developed by the commission. Governance, duties, and responsibilities and membership of the commission are established by the bill. Upon establishment of the commission, insurers and third party filers seeking to have a product approved by the commission shall file the product with, and pay applicable filing fees to, the commission. Any product approved by the commission may be sold or otherwise issued in those compacting states for which the insurer is legally authorized to do business. The bill also provides for a compacting state to "opt out" of certain uniform standards, and provides that a state may prospectively opt out of all uniform standards pertaining to long-term care insurance products by expressly providing for that opt out in the compact legislation. The bill contains a provision that New Jersey opts out of any future uniform standards established by the commission with respect to long-term care insurance products because this state has previously enacted the "New Jersey Long-Term Care Insurance Act," P.L.2003, c.207 (C.17B:27E-1 et seq.), which currently facilitates flexibility and innovation in the development of long-term care insurance coverage. The bill provides that compacting states may withdraw from the compact altogether, by repealing the statute which enacted the compact into law. Finally, the bill provides that the commissioner of Banking and Insurance shall report to the Legislature, as provided pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), within one year of the effective date of the bill or within one year of the operational date of the compact for the long-term care insurance products, whichever is later, the commissioner’s recommendation as to whether the state should participate in the compact with respect to all uniform standards involving long-term care insurance products under the compact.

New Mexico
none
New York

S.B. 4869
Passed Senate 6/22/10
Establishes the "Interstate Insurance Product Regulation Compact" to regulate certain insurance products among member states and to promote and protect the interest of consumers of individual and group annuity, life insurance, disability income and long term care insurance products.

North Carolina
none
North Dakota
none
Ohio
none
Oklahoma
none
Oregon
none
Pennsylvania
none
Puerto Rico
none
Rhode Island
none
South Carolina
none
South Dakota
none
Tennessee
none
Texas
none
Utah
none
Vermont
none
Virginia
none
Washington
none
West Virginia
none
Wisconsin
none
Wyoming
none

 

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