New Mexico Becomes Latest State to Join Interstate Insurance Product Regulation Compact

New Mexico became the 35th member of the Interstate Insurance Product Regulation Commission (the compact) on April 8, 2008 when Governor Bill Richardson signed New Mexico Senate Bill 15 into law. NAIFA – New Mexico supported the passage of this legislation and was actively involved in the process.

“Joining the Compact has been one of my top priorities, as I strongly believe New Mexico and its consumers will benefit from having access to products reviewed under detailed uniform standards with strong consumer protections — and its companies will benefit tremendously from this efficient, cost-effective filing process,” said New Mexico Insurance Superintendent Morris J. Chavez. “I appreciate the support from the legislature and Governor Richardson to enact this important Compact between the states.”

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.

New Mexico is the second state to pass compact legislation in 2009, with Mississippi joining the compact in March. 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.