The Business Council supports S.426 which authorizes New York State to enter into the Interstate Insurance Product Regulation Compact. The Compact is governed by a multi-state public entity, the Interstate Insurance Product Regulation Commission, (IIPRC). The Commission, an instrumentality of the Member States, serves as a central point of electronic filing for certain insurance products, including life insurance, annuities, disability income and long-term care insurance to develop uniform product standards, affording a high level of protection to purchasers of asset protection insurance products.
The Superintendent of the Department of Financial Services (DFS) would be the State’s representative and voting member at the Commission. New York has a large premium volume and would automatically become a member of the Compact’s Management Committee and would have a primary role in setting standards for the entire Compact. New York State would be a very powerful and influential voice in the Compact.
Currently, 45 jurisdictions have entered into the Interstate Insurance Product Regulation Compact, including the New York border states of Massachusetts, New Jersey, Pennsylvania and Vermont.
The Business Council believes the state’s entrance into the Compact would be extremely beneficial to New York’s life insurance industry because it will enhance the efficiency and effectiveness of the way insurance products are filed, reviewed and approved in New York State which consequently will allow consumers to have faster access to competitive insurance products in an ever-changing global marketplace.
For these reasons, The Business Council supports S.426 (Seward).