Interstate Compact Receives Its First Product Filings

The road to modernized insurance regulation reached a landmark in June when the Interstate Compact Commission received its first product filings. Sticking to its schedule, and only one year after starting to build its operations, the commission has now demonstrated that it is ready to begin reviewing new insurance products on behalf of its thirty member states.

The goal of the compact is to improve speed-to-market conditions for life, annuity, long-term care and disability income products. The compact allows companies to file new products for approval with one state-based entity – the Interstate Compact Commission – for sale in every state that enacts the compact law, rather than filing products separately state-by-state. NAIFA and its state associations have pressed for the compact’s adoption nationwide so that innovative products satisfying high uniform standards will be available sooner for agents to offer their clients.

The 30 states that have adopted the compact so far represent half of the national premium volume for the covered products. Compact legislation has also been pending or introduced in eight other states this year.

As the leading associations representing agents selling all the products covered by the compact, NAIFA and AHIA are the only producer representatives on the compact commission’s insurance industry advisory committee. As members of the industry advisory committee, NAIFA and AHIA ensure that the agent viewpoint is heard. With our help, the Interstate Compact Commission continues to develop its operating procedures for product filings and appropriate standards for the review of various life products.

NAIFA hopes the compact will become law in every state to make product speed-to-market a reality for all agents and their clients. NAIFA members are urged to support the compact if it’s introduced in their state, and to ask their insurance commissioners and state legislators to introduce the compact if it’s not yet on their legislative agenda.

You can learn more about the compact at www.naifa.org/advocacy/irr.

Back to July 2, 2007, NAIFA Frontline