Interstate Insurance Product Regulation Compact

2009 Legislation

Last updated: April 16, 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.

In the 2009 legislative session, 11 bills in seven states were introduced regarding the IIPRC. Mississippi, Missouri and New Mexico joined the compact.

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

 

CT | MS | MO | NJ | NM | NY | TN
STATES
BILL SUMMARY
Alabama
none
Alaska
none
Arizona
none
Arkansas
none
California
none
Colorado
none
Connecticut

S.B. 456
Failed Joint Favorable deadline 3/12/09
Adopts the National Association of Insurance Commissioners' Interstate Insurance Product Regulation Compact.

Delaware
none
District of Columbia
none
Florida
none
Georgia
none
Guam
none
Hawaii
none
Idaho
none
Illinois
none
Indiana
none
Iowa
none
Kansas
none
Kentucky
none
Louisiana
none
Maine
none
Maryland
none
Massachusetts
none
Michigan
none
Minnesota
none
Mississippi

H.B. 694
Died in committee 2/3/09
Enacts the Interstate Insurance Product Regulation Compact; sets forth the purposes of the compact; defines certain terms used in the compact; establishes the interstate insurance product regulation commission; sets forth the powers of the commission; sets forth provisions for the organization of the commission; sets forth provisions regarding the meetings and acts of the commission; sets forth the rules and operating procedures of the commission; sets forth provisions regarding commission records and enforcement; sets forth provisions regarding dispute resolution of the commission; sets forth provisions regarding product filing with and approval from the commission; sets forth provisions regarding review of commission decisions regarding filings; sets forth provisions regarding the finances of the commission; sets forth provisions regarding compacting states eligible for, the effective date of, and amendments to the compact; sets forth provisions regarding withdrawal from the compact, default under the compact, and dissolution of the compact; sets forth provisions regarding the severability and construction of the provisions of the compact; sets forth provisions regarding the binding effect of the compact and the effect of the compact on other laws.

 

S.B. 2841
Signed by governor 3/17/09, Chapter 357
Enacts the Interstate Insurance Product Regulation Compact; sets forth the purposes of the compact; defines certain terms used in the compact; establishes the interstate insurance product regulation commission; sets forth the powers of the commission; sets forth provisions for the organization of the commission; sets forth provisions regarding the meetings and acts of the commission; sets forth the rules and operating procedures of the commission; sets forth provisions regarding commission records and enforcement; sets forth provisions regarding dispute resolution of the commission; sets forth provisions regarding product filing with and approval from the commission; sets forth provisions regarding review of commission decisions regarding filings; sets forth provisions regarding the finances of the commission; sets forth provisions regarding compacting states eligible for, the effective date of, and amendments to the compact; sets forth provisions regarding withdrawal from the compact, default under the compact, and dissolution of the compact; sets forth provisions regarding the severability and construction of the provisions of the compact; sets forth provisions regarding the binding effect of the compact and the effect of the compact on other laws.

Missouri

H.B. 577
Signed by governor 7/13/09
This bill changes the laws regarding the regulation of insurance. The bill establishes the Interstate Insurance Product Regulation Compact to develop uniform standards for certain insurance products and the Interstate Insurance Product Regulation Commission to create a central clearinghouse to receive and provide the prompt review of insurance products covered under the compact, provide appropriate regulatory approval, and improve the coordination of regulatory resources and expertise between state insurance departments. The compact is to promote and protect the interests of consumers of individual and group annuity, life insurance, disability income, and long-term care insurance products. The compact creates a single point to file products for regulatory review and approval and for certain insurance products and rate filings which would be subject to uniform national standards. States that are members of the compact will develop uniform standards that apply to products filed with the commission. If a product is approved under the compact, an insurer will be able to sell the product in multiple states without separate filings in each state. The compact will not prevent an insurance company from filing products in individual states through the existing form filing process. Individual states will continue to regulate market activities and allow for the coordination among states to identify violations of the uniform standards. If a state disagrees with a product standard developed by the commission, the state can opt out of the uniform standard. For long-term care insurance, states can opt out at the time of joining the compact. All states joining the compact will be involved in setting up and overseeing the activities of the compact. The commission is required to report annually to the general assembly and governor in compacting states. The annual report must include the results of an audit by an independent certified public accountant.

Montana
none
Nebraska
none
Nevada
none
New Hampshire
none
New Jersey

A.B. 2614
Passed Assembly 2/5/09
S.B. 1258
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. Finally, the bill provides that compacting states may withdraw from the compact altogether, by repealing the statute which enacted the compact into law.

New Mexico

S.B. 15
Signed by governor 4/7/09, Chapter 188
Enacts the Interstate Insurance Product Regulation Compact; provides for non-preemption.

New York

A.B. 6191
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.

 

S.B. 4869
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

H.B. 471
S.B. 601
Clarifies that commissioner of commerce and insurance, or the commissioner's designee, shall serve as the state's representative to the interstate insurance product regulation commission.

Texas
none
Utah
none
Vermont
none
Virginia
none
Washington
none
West Virginia
none
Wisconsin
none
Wyoming
none

  

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