An alternate product filing approach announced by three large states was called “reckless” by New York Insurance Superintendent Greg Serio.
California, Florida and Texas signed a memorandum of agreement to provide a consistent set of standards for the approval of new annuity and life insurance products. The agreement was announced during the winter meeting of the National Association of Insurance Commissioners, prompting an executive session that delayed the announcement of the new leadership.
Last July, after over a year of work, the NAIC adopted an interstate compact model for life insurance products that was supported by the National Conference of Insurance Legislators and the National Conference of State Legislatures.
The compact is one of the key points that regulators intend to use to streamline product filing and promote state regulation. In fact, the new incoming NAIC President, Ernst Csiszar, South Carolina director, said the development of standards will be one of the NAICs major goals in 2004.
Csiszar says the announcement will not hurt work on the compact but rather will reinforce NAICs direction of creating a single point of filing for products. The agreement among the three states removes desk drawer rules but still leaves each states own standards in place, he says. In order to have a compact, uniform standards must be developed, Csiszar says. He notes that the three states had said they will continue work on the compact.