OFIS head pushes for action on insurance compact

Category: Chronicle Archives Published on Thursday, 20 July 2006 20:00 Written by Michigan Chronicle

Office of Financial and Insurance Services (OFIS) Commissioner Linda A. Watters has called on legislators to pass legislation that would permit Michigan to join an Interstate Insurance Compact that is supported by insurance regulators and industry nationwide.

With passage by 27 states recently, the Compact created an Interstate Commission that provides participating states with the ability to collectively use their expertise to develop uniform national product standards, affording a high level of protection to consumers of life insurance, annuities, disability income and long-term care insurance products. The newly created commission met for the first time in conjunction with the National Association of Insurance Commissioners (NAIC) summer meeting in Washington, D.C., recently.

“By not adopting the Compact, we are missing the boat on participating in cutting-edge initiatives which will not only benefit the industry but will provide more protection to consumers as well,” Watters said.

The Interstate Insurance Product Regulation Commission held a public meeting and press conference at the National Press Club on June 13 in Washington, D.C. This was the first meeting of the Commission since it achieved its operational goal of adoption by 26 states. The NAIC exceeded its goals for the compact by adding Minnesota as the 27th state and reaching approximately 41 percent of the premium volume.

The bills that would bring Michigan into the Compact have been stalled in the Michigan legislature.

The Compact establishes a central point of filing for insurance products, enhancing the speed and efficiency of regulatory decisions.

The 27 Compacting states include Alaska, Colorado, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Minnesota, Nebraska, New Hampshire, North Carolina, Ohio, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, Texas, Utah, Vermont, Virginia, Washington, West Virginia and Wyoming.