NAIC Delays Vote On Compact Draft For Life Product Approvals
Against a backdrop of concern voiced by some insurance commissioners, consumer groups and trial lawyers, a final vote to adopt an interstate compact that would create a single point of product filing was delayed by the National Association of Insurance Commissioners hours before the scheduled vote.
The NAIC will instead decide on whether a public hearing will be held and will vote on the compact sometime before its winter meeting in December. It is likely that a hearing will be held to provide more opportunity for comment, an NAIC spokesperson says.
Commissioners doubts over the compact first surfaced when the NAICs zone of Western states unanimously expressed concern over points in the draft including pre-emption of authority of state courts and state laws.
Montana Insurance Commissioner John Morrison says “a substantial number of consumer protection laws are in place and legislative and legal battles have been fought to put them in place.” Those gains would be lost, he adds.