PIA National outside counsel Robert H. (Skip) Myers, Jr. told a panel hosted by the National Conference of Insurance Legislators (NCOIL) that interstate compacts are the best way to achieve regulatory modernization in insurance.

Panelists on the November 17 discussion entitled Interstate Compacts: An Idea Whose Time Has Come included Myers along with Frances Arricale, Executive Director, Interstate Insurance Product Regulation Commission; Richard Bouhan, Executive Director, National Association of Professional Surplus Lines Offices, Michelle Minton, Policy Analyst, Competitive Enterprise Institute and Robert H. (Skip) Myers, Jr., Managing Partner, Morris, Manning & Martin, LLP. 

The speakers noted that an interstate compact is likely the best state based solution to modernizing insurance regulation. Speakers highlighted the democratic, transparent process of the decision making related to the compact. Arricale outlined how the Interstate Insurance Product Regulation Commission might serve as a model for future compacts. Mr. Bouhan said that a compact would be the best way to clear up inconsistencies in the regulation and tax allocation in the surplus lines industry. Minton observed that while compacts might be able to achieve a certain level of uniformity; it is likely that not all states will participate. In her opinion, the better course of action would be the creation of an optional federal charter.

Myers gave a background and legal analysis of compacts. His conclusion was that compacts are the best vehicle for achieving uniformity without federal intervention.

December 4, 2007