The Interstate Compact is an initiative of the NAIC, and is an agreement among states to improve the speed-to-market conditions for life insurance, annuity, disability income and long-term care products by establishing a single point-of-filing for product review. The ability to obtain approval from a single source for the sale of insurance products in several states gives insurers a more efficient regulatory process than the current multistate product review system.
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Michael Gerber
Vice President and General Counsel
The Interstate Compact is an initiative of the National Association of Insurance Commissioners (NAIC) to improve the speed-to-market conditions for life insurance, annuity, disability income and long-term care products.
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NAIFA’s Position
NAIFA supports the Interstate Compact. NAIFA members, consumers and insurers all benefit because new insurance products satisfying uniform standards are available sooner. A single point-of-filing for product review also frees up insurance department resources to address other important issues. NAIFA has represented agents in the development of the Compact and the Compact commission's rules and bylaws by submitting multiple written comments to the NAIC and the Compact commission and by testifying at NAIC and Compact commission public hearings. NAIFA and AHIA currently serve as the only agent groups on the Compact commission industry advisory committee, which assists with the operation of the Compact commission. NAIFA encourages its members to support adoption of the Compact in every state and assists state associations with this effort.
NAIC adopted the Compact as a model law in July 2003. With NAIFA's participation the Compact has been endorsed by the National Conference of Insurance Legislators, as well as by the National Conference of State Legislatures. The Compact has been adopted in 33 states and is under consideration in several others. The Compact became operational in 2006 when it was adopted by 26 states (states with over 40 percent of the premium volume for the covered products). The Compact commission continues to develop rules for its operations and uniform standards for certain product lines. NAIFA is participating in the development of these rules and standards. The Compact commission received its first product filings in June 2007, and approved them within 30 days of submission.
Listen to the NAIFA GovPod on the State of State Insurance Regulation and an interview with
NAIC President Sandy Praeger
Helpful Resources
- The State of the Insurance Industry: Examining the Current Regulatory and Oversight Structure (NAIFA’s written testimony submitted to the Senate Committee on Banking, Housing and Urban Affairs, July 29, 2008)
- Moving Insurance Regulation into the 21st Century (Advisor Today, July 2008)
- Protecting and Promoting Your Interests (Advisor Today, July 2008)
- Louisiana Becomes the Latest State to Join the Interstate Compact (NAIFA GovTalk, July 1, 2008)
- NAIFA Applauds South Carolina and Louisiana for Joining the Interstate Insurance Product Regulation Compact (June 26, 2008)
- South Carolina Becomes the 32nd State to Join Interstate Compact (NAIFA GovTalk, June 16, 2008)
- Interstate Insurance Product Regulation Commission Website
- House Subcommittee Holds Hearing Exploring All Sides of Insurance Regulatory Reform (NAIFA GovTalk, May 1, 2008)
- NAIFA’s Interview with NAIC President Sandy Praeger (NAIFA GovPod, April 1, 2008)
- Wisconsin Becomes 31st State to Join the Interstate Compact; NAIFA Wisconsin Plays a Key Role in Legislation’s Passage (NAIFA GovTalk, April 1, 2008)
- Your Guide to the OFC, NARAB II, and the Interstate Compact (Advisor Today, April 2008)
- NAIFA’s February GovPod Delivers a “State of the States” on Regulatory Reform (NAIFA GovTalk, February 1, 2008)
- "NAIFA Supports the Interstate Compact” Bullet Points (April 2008)
- Interstate Compact Commission Testimony Before the U.S. House of Representatives Regarding Options for Regulatory Reform (April 16, 2008)
- Interstate Compact Commission Product Filing Statistics (March 25, 2008)
- State Officials Urge Nationwide Adoption of Interstate Compact (NAIFA GovTalk, March 1, 2008)
- *NAIFA State Legislative Grid: Interstate Insurance Product Regulation Compact (January 1, 2008)
Helpful NAIFA Publications
- Your Guide to the OFC, NARAB II, and the Interstate Compact(Advisor Today, April 2008)
- NAIFA, AHIA Appointed to Interstate Compact Advisory Committee (NAIFA Frontline, March 15, 2007)
- NAIFA Supports Speed to Market (Advisor Today, May 2004)
- Interstate Compact Receives its First Product Filings (NAIFA Frontline, July 2, 2007)
- NAIFA Frontline: Tennessee Becomes 30th Member of the Interstate Compact (NAIFA Frontline, June 1, 2007)
- Interstate Compact Commission Holds First Annual Meeting (NAIFA Frontline, December 1, 2006)
- NAIFA Appointed to Interstate Compact Committee (NAIFA Frontline, July 5, 2006)
- Interstate Compact Commission Holds First Meeting (NAIFA Frontline, June 15, 2006)
- 26 States Adopt Interstate Compact (NAIFA Frontline, May 15, 2006)