INSURANCE COMPACT TESTIFIES TO START-UP SUCCESS

WASHINGTON, D.C. (April 16, 2008) — Interstate Insurance Product Regulation Commission (IIPRC) Executive Director Frances Arricale testified today before the U.S. House Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, highlighting the successful state-based efforts to modernize insurance regulation under the Interstate Insurance Compact.

“The Insurance Compact is a key successful speed-to-market initiative launched by state insurance regulators, in partnership with state legislators across the country, to meet the challenges of insurance regulation within an international financial market dynamic,” Arricale explained. “We have built the framework for the future of insurance product regulation — and the future is now.”

With 31 member states to date representing half of premium volume for asset-based insurance products nationwide, the Insurance Compact has made great advances to modernize and streamline state regulatory processes in short order.

"The Insurance Compact represents a key state-based modernization reform initiative that benefits consumers, industry and regulators,” Arricale said. “It makes insurance regulation more efficient and effective in the financial marketplace, while maintaining and enhancing protections for consumers."

The IIPRC provides a central point of electronic product filing under nationally recognized uniform standards. This regulatory filing platform was successfully launched in 2007, affording insurers the ability to make one filing under one set of standards for one regulatory approval issued in less than 60 days that is valid in all IIPRC member jurisdictions.

“The success of the Insurance Compact clearly demonstrates the time-tested expertise of the state regulatory system, implementing speed-to-market reform by leveraging our interstate collective framework,” said Ohio Insurance Director Mary Jo Hudson, who is vice-chair of the IIPRC’s Management Committee. “We encourage the remaining states to join the Insurance Compact as we expand our goals of uniformity and consumer protection nationwide.”

Ten jurisdictions have Insurance Compact legislation pending and under consideration this year: Alabama, California, Connecticut, District of Columbia, Illinois, Louisiana, Missouri, New Jersey, New York and South Carolina.

Click HERE to view the full text of Arricale’s testimony.

About the Commission

Currently, 31 members have joined the Interstate Insurance Product Regulation Commission (IIPRC). Compacting members are Alaska, Colorado, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New Hampshire, North Carolina, Ohio, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

The IIPRC enables state insurance regulators to develop uniform national standards for asset protection insurance products, such as life insurance, annuities, disability income and long-term care insurance. The IIPRC establishes a central filing point for these insurance products, enhancing the speed and efficiency of regulatory decisions and allowing companies to compete more effectively in the modern financial marketplace, while continuing to provide protection for consumers.

For more information, visit www.insurancecompact.org.