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NAIC Approves Interstate Compact

The National Association of Insurance Commissioners (NAIC) has enacted the Interstate Insurance Product Regulation Compact (IIPRC) during its annual meeting in San Diego, California. The...
December 9, 2002

The National Association of Insurance Commissioners (NAIC) has enacted the Interstate Insurance Product Regulation Compact (IIPRC) during its annual meeting in San Diego, California. The compact create a single, uniform set of standards and processes for regulatory approval of insurance products, including life insurance, annuities, disability income and long-term care products. The compact is designed to preserve existing consumer-protection laws in the states. 

The Compact will now go to the National Conference of State Legislatures (NCSL) for comments and approval. The NCSL Task Force to Streamline and Simplify Insurance Regulations will meet on Wednesday December 11, 2002 to take this up. Committee Chair State Senator Kemp Hannon (R-NY) commended the collaborative work by NCSL, NAIC and the National Conference of Insurance Legislators (NCOIL) on this venture. Agreement on the Compact had been sought by the end of this year to enable it to go before state legislatures for adoption in 2003.

What It Means to Agents:  While improving industry competitiveness and the "speed to market" of new insurance products, the proposed Compact will provide an efficient filing process for insurance products while maintaining the state-based regulatory system. The proposal has the flexibility to include life insurance, annuities, disability income and possibly long-term care products.