Bill No.: SF0020 Drafter: LGC

LSO No.: 06LSO-0060 Effective Date: 3/9/2006

Enrolled Act No.: SEA0008

Chapter No.: 22

Prime Sponsor: Joint Corporations, Elections and Political Subdivisions Interim Committee

Catch Title: Interstate insurance product regulation compact.

Subject: The act enters the state into the interstate insurance product regulation compact.

Summary/Major Elements:

· The compact allows insurance companies to submit potential insurance contracts for life, long term care, annuity and disability policies to a centralized office for filing, review and approval. 

· Currently seventeen states have entered the compact.  The compact does not take effect until it is entered by 26 states, or until the states entered cover 40% of the premium volume in the country. 

· The compact delegates the authority to pre-approve policy forms to an interstate insurance product regulation commission made of member states.  There is also an opt-out provision if the state does not wish to continue with its participation in the compact.

· The act provides for formation of the interstate insurance product regulation commission, provides voting rights and procedures for member states, and provides for rulemaking and operating procedures for the commission.

· The act provides procedures for review of commission decisions regarding filings and allows states to approve filings that have not been approved by the commission.

Comments:

· Popular name: Interstate Insurance Product Regulation Compact

· Contains delayed effective/repeal date: The compact does not go into effect until it is entered by 26 states, or until the states entered cover 40% of the premium volume in the country.