A state that wants to join the Interstate Insurance Product Regulation Compact may try to opt out of use of one IIPRC annuity provision.
The Missouri Department of Insurance, Financial Institutions and Professional Registration has reviewed the standards developed by the Interstate Insurance Product Regulation Commission, Washington, and it has decided that it has questions about whether one, relating to the “Market Value Adjustment Feature Provided Through the General Account,” may provide less protection for consumers than Missouri’s laws and regulations now provide, according to John Huff, the department’s director.
“Please allow this correspondence to serve as Missouri’s formal election that it will ‘opt out’ of” the standard, Huff writes.
But the Missouri department will be holding a hearing to make sure that it understands the MVA standard correctly, and it will go through a formal regulatory process before it makes a formal decision to opt out, Huff writes.
“The department is hopeful that through further collaboration with the Product Standards Committee, this particular standard will include language that allows Missouri to participate in this area of uniformity and takes into account the established levels of consumer protection that Missourians currently require,” Huff writes.
“Please know that this process was undertaken with the greatest care and in no manner serves to make any statement with respect to any of the other Interstate Compact’s uniform standards,” Huff writes. “The state of Missouri firmly believes in the mission of the Interstate Compact and its efforts to bring further uniformity to insurance products.”
State regulators developed the Interstate Compact and the Interstate Insurance Product, which accepts and reviews product filings and other filings for member states, in an effort to iron out the differences between the member states and streamline the process insurers go through when introducing and updating products in multiple states.
The IIPRC expects to hold an emergency meeting Friday to consider Missouri’s petition to opt out of the MVA standard, officials say.