NU Online News Service, May 17, 6:10 p.m. – The effort to create a single entity that can accept insurance filings for all states is advancing quickly.
Representatives for three key groups–the National Assocation of Insurance Commissioners, Kansas City, Mo.; the National Conference of Insurance Legislators, Albany, N.Y.; and the National Conference of State Legislatures, Denver–all reacted favorably to a draft compact at a recent meeting, according NAIC President Terri Vaughan, who is the Iowa insurance commissioner.
The meeting included Vaughan; NCOIL President William Larkin, a Republican state senator from New York; and NCSL President Stephen Saland, another Republican state senator from New York.
Other commissioners present included New York Commissioner Greg Serio; NAIC Vice President and Arkansas Commissioner Mike Pickens; NAIC Secretary Treasurer and Illinois Director Nat Shapo; and North Dakota Commissioner Jim Poolman.
“I think that legislators were very interested, given the environment that we are living in right now,” Vaughan adds.
There has been a call by some insurers for Congress to explore an optional federal charter proposal.
Larkin is confident that a compact can be created. “It will not be an easy sell because we are talking about giving up turf,” Larkin says.
But Larkin emphasizes the benefits of creating a compact, including meeting speed-to-market and producer licensing needs. “The idea of a compact has been tried before and is a benefit to consumers,” he says.
At the recent meeting on the compact, “there was no disagreement,” says NCOIL Executive Director Robert Mackin. “It was very positive.”
The interstate compact would create the foundation for a single-point of filing for insurance products. States would sign onto the compact and a product, if approved, could be introduced in all compact states.