NAIFA Welcomes Opening of Interstate Compact Commission
Strong and uniform product standards, single point-of-contact for product review to benefit consumers, insurers and NAIFA members
WASHINGTON, DC – June 13, 2006 – NAIFA reiterated its strong support of the Interstate Insurance Product Regulation Compact and is eager to participate in the first meeting of the Interstate Compact Commission, scheduled for today.
Contact
Lee Allen
Vice President of Communications and Marketing
703-770-8112
The Interstate Compact is designed to improve speed-to-market conditions
for life insurance, annuity, disability income and long-term care products
by establishing a single point-of-contact for product review. Adoption of
the compact was required by 26 states before the commission could become
operational—that goal was reached last month. So far 27 state legislatures
have adopted the National Association of Insurance Commissioners (NAIC)
model law.
At an NAIC news conference held prior to the commission's inaugural meeting, Alessandro Iuppa, NAIC's president and Maine's state insurance superintendent, outlined plans for the implementation of the Interstate Compact Commission, to be based in Washington, D.C. He hopes it will be operational early in 2007.
"The Interstate Compact is a milestone achievement in the advancement of state insurance regulation, and the NAIC should be commended for its efforts to improve speed to market for these products," said David E. Smithkey, CLU, RFC, NAIFA's president. "NAIFA has strongly supported the compact, and NAIFA state associations around the country have pressed for its adoption so that new products satisfying uniform standards will be available sooner for agents to offer their clients."
NAIFA has not only supported the Interstate Compact but has assisted the NAIC in drafting the commission bylaws "to ensure the compact commission will operate in an open, fair and efficient manner," said David F. Woods, CLU, ChFC, LUTCF, NAIFA's chief executive officer. "We are pleased that the NAIC has given the agent community a formal role in the compact commission so that agents can help the commission develop appropriate product standards and review procedures."
About NAIFA: Founded in 1890 as the National Association of Life Underwriters, the National Association of Insurance and Financial Advisors comprises 800 state and local associations representing the business interests of 225,000 members and their employees nationwide. Members focus their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. NAIFA's mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members. NAIFA's website can be accessed at www.naifa.org.