Mississippi Becomes Latest Member of Interstate Insurance Product Regulation Compact

Mississippi became the newest member of the Interstate Insurance Product Regulation Commission (the compact) on March 17, 2008. By signing Mississippi Senate Bill 2841 into law, Governor Haley Barbour made Mississippi the 34th member of the compact. NAIFA –  Mississippi supported the passage of this legislation and was actively involved in the process.

“I thank the legislators and governors for passing this important compact, which protects Mississippi consumers,” said MS Insurance Commissioner Mike Chaney.  “The compact legislation is important for modernization of the product filing review and approval process for Mississippi companies and consumers.

The Interstate Compact aims to improve the speed-to-market conditions for life insurance, annuity, disability income and long-term care products through the use of one regulatory body to review new insurance products. The ability to obtain approval from a single source for the sale of insurance products in multiple states gives insurers a more efficient and uniform product approval process than the multistate product review system. Faster product review benefits consumers and NAIFA members by making new protection products available sooner.

NAIFA has been a strong supporter of the Interstate Compact since helping the National Association of Insurance Commissioners (NAIC) draft the model Compact law in 2002. This support continues today as NAIFA, and its health insurance conference AHIA, are the only groups representing the agent community on the Compact Commission’s Industry Advisory Committee. NAIFA state associations across the country have also been critical proponents of Compact legislation as it’s introduced in state houses across the country. The Compact became operational in 2006 and began accepting its first product filings in 2007. 

Mississippi is the first state to pass compact legislation in 2009, but it is expected that several other states will advance legislation this year. NAIFA will continue to follow any developments and will keep members informed.

To learn more about the Interstate Compact and NAIFA’s involvement, please visit here.

NAIFA Staff Contact:  Michael Gerber, NAIFA General Counsel, at (703) 770-8190.