Wisconsin Becomes 31st State to Join the Interstate Compact; NAIFA-Wisconsin Plays a Key Role in the Legislation’s Passage

On March 25, 2008, Wisconsin Governor Jim Doyle signed into law Senate Bill 294, which enters the Badger State into the Interstate Insurance Product Regulation Commission. The passage of this bill makes Wisconsin the thirty-first state to join the Interstate Compact.

Taking the forefront in the efforts to pass this legislation were the dedicated members of NAIFA-Wisconsin. The state association held its Day on the Hill on February 13, sending over 100 NAIFA members to lobby members of the Wisconsin Senate and Assembly to urge them to move the Interstate Compact Bill out of their respective committees and onto the floor for final vote. By the next day, the Assembly Insurance Committee had scheduled a hearing and a vote on the legislation, and by March 25, the governor had signed the bill into law.

Laura DeGolier, Wisconsin State APIC Chair, noted that this situation highlights how successful these campaigns can be. “As the State APIC chair, I have used this scenario to let our people know that we can have an impact if we all work together.”

Wisconsin State Executive Susan Linck echoed these sentiments when saying, “It was a great reward for our ground troops,” and that “we made sure they all knew how effective they were.”

The Interstate Compact improves speed-to-market conditions for product approval of life insurance, annuity, disability income, and long-term care products by establishing a single point of review for products. The primary objective of the compact is to create a much more efficient system for any insurer who operates in multiple states. By having products reviewed in one place, once a product is approved, an insurer can then sell this product in any state that is a member of the Interstate Compact, thus placing products in the marketplace faster, more efficiently, and at a lower cost.
 
NAIFA supports the Interstate Compact, and has been heavily involved in efforts to see it advance. NAIFA has represented agents in the development of the Compact and the Compact commission's rules, standards and bylaws by submitting multiple written comments to the NAIC and the Compact commission. Additionally, NAIFA has testified at NAIC and Compact commission public hearings. NAIFA and AHIA are presently the only agent groups on the Compact commission industry advisory committee.

At present, the Compact has been adopted in 31 states, and legislation is pending in nine other states. NAIFA encourages its members to support adoption of the Compact in every state.

To learn more about the interstate compact visit the insurance regulatory reform section of NAIFA’s website at www.naifa.org/advocacy/irr/irc.cfm

To hear NAIFA experts discuss the interstate compact (and other efforts to improve state insurance regulation) listen to the February NAIFA GovPod "The State of the States" at www.naifa.org/advocacy/podcasts.cfm

NAIFA Staff Contact: Michael Gerber, Vice President & General Counsel, at mgerber@naifa.org or 703-770-8190.