NU Online News Service, Oct. 15, 9:39 a.m. San Diego – The American Council of Life Insurers announced at its annual meeting here that its board of directors unanimously supports a September 27 draft of an interstate compact that is being developed by state insurance regulators.
The interstate compact under development by the National Association of Insurance Commissioners, Kansas City, Mo., would create a single point of filing for life insurance products including life insurance, annuities, disability and long-term care insurance.
The ACLI board commended the NAIC’s effort and reiterated its commitment to a dual track approach to regulation. It noted that the September 27 draft remains consistent with improving the uniformity and effectiveness of the state-based system.
But it also noted that any “material weakening of key provisions” of the compact including an opt-out provision and product standards could affect that support.
The ACLI said that if the September 27 draft is approved, then it will seek enactment of this legislation in those states in which the insurance commissioner is seeking enactment of the compact or is actively supporting the legislation.
The ACLI also said that it is seeking inclusion of long-term care insurance as a covered product line in the compact.
It said that its CEO Oversight Board has been authorized to make a determination as to whether a final version of the compact adopted by the NAIC is “materially consistent” with the September 27 interstate compact draft.
The NAIC interstate compact draft is expected to be fully adopted by the organization in the next few weeks so that it can be brought to state legislatures for the 2003 legislative session.