The Interstate Insurance Compact (“Compact”) is an important modernization initiative that benefits state insurance regulators, consumers and the insurance industry. The Compact enhances the efficiency and effectiveness of the way insurance products are filed, reviewed and approved allowing consumers to have faster access to competitive insurance products in an ever-changing global marketplace. The Compact promotes uniformity through application of national product standards embedded with strong consumer protections.

The Compact established a multi-state public entity, the Interstate Insurance Product Regulation Commission (IIPRC) which serves as an instrumentality of the Member States. The IIPRC serves as a central point of electronic filing for certain insurance products, including life insurance, annuities, disability income and long-term care insurance to develop uniform product standards, affording a high level of protection to purchasers of asset protection insurance products.

The Compact is good news for both consumers and insurers. Consumer protection is the hallmark of the state-based regulatory system. Insurers may continue to rely on the extensive expertise of the states in reviewing complex products. State insurance regulators believe the state-based IIPRC is the preferred solution to enhance speed-to-market efficiencies while continuing to provide insurance consumers with strong and established protections.

Since meeting its operational threshold in May 2006, the IIPRC now has 36 Member States representing over half of the premium volume nationwide. The Management Committee of the IIPRC manages the affairs of the Commission. The Management Committee Members currently include the six largest Compacting States according to premium volume: Massachusetts, Michigan, North Carolina, Ohio, Pennsylvania and Texas; four mid-sized states, Georgia, Indiana, Virginia, and Wisconsin; and one additional state from each of four regional zones, Idaho, Oklahoma, Vermont and West Virginia. Additional Members of the Compact include: Alaska, Colorado, Hawaii, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Washington, and Wyoming.

The following provides a highlight of achievements and outlines continuing plans of the IIPRC.

June 2006: Inaugural Meeting of IIPRC in Washington, DC. Under the motto banner of “States, Strength and Speed Aligned”, the IIPRC Members reaffirm their commitment to modernize state-based insurance regulation to meet the needs of the evolving global insurance marketplace while continuing to uphold strong consumer protections.

July through December 2006: IIPRC works on establishing its operational foundation through extensive consultations with regulators, legislative representatives, consumers, and industry in developing and adopting the Bylaws. The IIPRC holds First Annual IIPRC Meeting in Lansdowne, VA. The first Uniform Standards are adopted within the initial six (6) months of operation The IIPRC Legislative Committee names its leadership and works as an active partner to oversee the progress of the IIPRC.

First Half of 2007: IIPRC continues developing its operations by hiring an Administrative Coordinator to manage the administrative requirements and vital public notice platforms; and by electing Officers from West Virginia, Michigan and Minnesota.. Additional work is completed on the System for Electronic Rate and Form Filing (SERFF) which allows companies to electronically file their products with the IIPRC; and a state filing fee collection structure is put in place to ensure that all proper state fees are collected on behalf of the Member States. The IIPRC is afforded a secondment of an interim product filing examiner from a Member State to review anticipated Compact filings.

Second Half of 2007: First Filings Received. In addition to its first five (5) adopted Uniform Standards, the IIPRC has Uniform Standards for a Life Application and six (6) Riders in filing effect for June. Upon adopting its “Product Filing Rule” which allows for the filing of already-approved Member State forms with IIPRC forms for review (“Mix and Match” provision), the IIPRC is open for business and receives its first product filings by insurers on target with its mid-2007 time frame. The IIPRC approves the first product filings received in under 30 days. The IIPRC adopts a Compact filing fee structure as the Compact Statute provides that the IIPRC shall be funded by filing fees. The Commission held its Second Annual Meeting and elected officers from West Virginia, Ohio and Minnesota to serve during the remainder of 2007 and 2008; as well as adopting nine (9) more standards to bring the total Uniform Standards to 36.

Spring 2008: Experienced Regulators and Actuary join the IIPRC team. Annual Registration Fees are instituted and collected from companies who wish to file with the IIPRC. IIPRC Code of Ethics is adopted. The IIPRC continues to adopt additional Uniform Standards, outreach to more States to join the Compact, and encourage insurers to utilize the IIPRC central point of product filing.

Summer into Fall 2008: Additional States join the Compact to bring the premium volume represented to over one-half of the premium volume nationwide. Additional Uniform Standards are developed and are in effect, bringing the total at the end of 2008, to 46 Uniform Standards. IIPRC Members adopt Communications/Marketing Strategy.

Spring 2009: Mississippi becomes 34th member state to enact the Compact Legislation and will become an effective member on July 1, 2009. New Mexico becomes 35th member state to enact the Compact Legislation and will become an effective member on June 19, 2009.

Summer 2009: More Uniform Standards become effective in both the life and annuity product lines, bringing the total to over 50 Uniform Standards in effect. Missouri becomes the 36th member state to enact the Compact Legislation and will become an effective member on August 28, 2009. Additional states expected to adopt the Compact Legislation.