The Interstate Insurance Product Regulation Commission (IIPRC) annual budget process is an open process with participation by IIPRC Members and all interested parties, including the Legislative Committee and the Industry and Consumer Advisory Committees. The IIPRC Executive Director is charged with drafting an annual proposed budget for review by the IIPRC membership. Throughout the development of the IIPRC's budget, there are numerous and rigorous reviews conducted by the IIPRC Office in consultation with the National Association of Insurance Commissioners (NAIC) Finance Department which provides accounting and financial services under the IIPRC - NAIC Services Agreement. The IIPRC Officers and the IIPRC Finance Committee review and agree upon a final proposed budget which is then recommended to the Management Committee for a 30-day public comment period, including a public hearing. During this 30-day exposure, all interested parties may review and submit comments regarding the proposed IIPRC Annual Budget. The final Budget is then the subject of a majority vote by both the Management Committee and the full Commission before it is accepted and implemented by the IIPRC Office.
IIPRC 2009 Budget
The 2009 Annual Budget process began in early summer 2008 with a proposal from the Executive Director working with the NAIC Finance Department. In July, at the monthly Management Committee Meeting, the Finance Committee recommended to the Management Committee that the proposed budget be exposed for a 30-day comment period with the intent of adopting the 2009 Annual Budget during the upcoming Annual Meeting in September. During the September Annual Meeting of the IIPRC, there was a Public Hearing before the Management Committee to afford all interested parties an opportunity to comment on the 2009 Annual Budget. The 2009 Annual Budget was approved by the Management Committee immediately following the Public Hearing, and then adopted by the full Commission membership during the Annual Meeting of the IIPRC.
The 2009 budget proposes revenues and expenses of $1.3 million and $1.5 million, respectively. The IIPRC 2009 Annual Budget is forecasting revenue growth of 134.3%, largely due to the Annual Registration Fees that are anticipated for 2009. The remaining expenses are to be covered by a Line of Credit Agreement with the NAIC.
The 2009 Annual Budget represents the fact that the Compact is still working through its operational start-up. There was great initial success in initiating the Compact's product review operations, and the Compact has had some self-generated revenue from Compact filing fees. However, as with any start-up, the operations need to continue to grow, and this Budget reflects that fact.
During the drafting process, it was recognized that the Finance Committee will need to assess the IIPRC budgetary needs on a quarterly basis as we move through the third operational year. As is the nature of a start-up operation, the financial needs and considerations of the IIPRC will evolve. The IIPRC Officers and Finance Committee, along with the IIPRC Executive Director and Operations Manager, will stand ready to make additional recommendations throughout the year as the financial progress of the IIPRC is evaluated.
IIPRC 2008 Budget
The IIPRC Management Committee exposed the 2008 Annual Budget for a 30-day public comment period during the September 2007 Annual Meeting. The Management Committee held a public hearing on the 2008 Annual Budget in November 2007. The 2008 Annual Budget was approved by the Management Committee immediately following the hearing. The full Commission adopted the 2008 budget at the December 2007 Winter National Meeting.
Should you have any questions about the IIPRC budget, please feel free to contact the IIPRC Office.
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