"An Act relating to authorizing the state to join with other states in entering into the Interstate Insurance Product Regulation Compact. "
"Consumers will benefit from strong, uniform national product standards."
- Rep. Coghill
This bill adds Alaska to the many other states that have already joined together in the interstate Insurance Product Regulation Act. Life insurance, annuities, disability income, and long term care products for the most apart must be approved by each state before they are marketed. In addition the states have differing requirements for the structure of these products, so products must be revised to meet each individual state's requirements before they are approved for sale. Consequently, it is expensive and time consuming to market new insurance policies or products as compared to competitors in the financial services marketplace who are federally regulated.
House Bill 439 would enhance state regulation of insurance by creating a Commission governed collectively by the states that would serve as a single point of filing for specified insurance products, and that would establish uniform, national standards for those products. Such a system would benefit consumers and state government as well as the insurers. Consumers will benefit from strong, uniform national product standards. The quality of product review will be enhanced as experienced staff will review the filings, thereby enabling regulators to devote more time and resources to monitoring for problems in the marketplace. The public will have more timely access to innovative insurance products. Importantly the state retains the right to opt out of certain adopted standards if a need is determined.