ACLI Resolution Supports NAIC Product Approval Interstate Compact
During the annual meeting of the American Council of Life Insurers here, its board voted unanimously to adopt a resolution regarding the latest draft of the product approval interstate compact proposal of the National Association of Insurance Commissioners.
The ACLI notified NAIC President Therese Vaughan of its decision in a letter that said it fully appreciates “the challenge you have faced in balancing competing interests and producing legislation that can be supported by legislators, regulators and the industry alike.”
Noting that the ACLI “remains committed to a dual track approach to regulatory modernization,” the resolution states that the Sept. 27 compact draft is “consistent with the ACLIs objective of improving the uniformity and efficiency of the state-based process of product regulation.”
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The resolution says, however, that “any material weakening of the key operative provisions of the proposal, such as the regulatory opt-out and the binding effect of the compact product standards, would be inconsistent with the ACLIs stated objectives.”
If the Sept. 27 draft is approved by the NAIC “without material changes,” the resolution states, “ACLI staff is instructed to seek enactment of this legislation in those states where the insurance commissioner is seeking enactment of or actively supporting the legislation.”
The resolution states that ACLI “will also seek inclusion of long-term care insurance as a covered product line.”
Finally, the resolution states that the ACLIs CEO Oversight Group on Improving State Regulation will determine whether the final compact legislation approved by the NAIC is “materially consistent with the September 27 draft” endorsed by the ACLI board.
A couple of days after this resolution was approved, a panel discussion on regulatory modernization was held at the ACLIs annual meeting and the compact was one of the areas discussed.