Weekly Tip: Arkansas and Montana

 

Weekly Tips

Arkansas and Montana

5/22/2013

You may have seen our press releases recently about Arkansas and Montana becoming the newest Compact States and have wondered about when to add them to your filings. Wonder no more!

Arkansas will become an effective member of the Compact on August 15th. They were eligible to become members 90 days after their legislature ended its session on Friday, May 17th. By statute, the states are afforded 10 business days to review the Uniform Standards and provide notice to any opt outs during that time. With this said, Arkansas will eligible to be included on filings - pending, submitted, or previously approved - on Thursday, August 29th. Arkansas does collect state fees - $50 per form. More information may be found on the Member State Filing Fee chart on the Insurance Company Resources page.

Montana's legislation included a specific effective date of October 1st. Montana will then be eligible to be included on filings - pending, submitted, or previously approved - on Tuesday, October 15th. Montana's unisex requirement is constitutional. Montana opted out of long-term care and individual disability because the Uniform Standards include approval of rates. The IIPRC does not have rate authority with regards to life and annuities. Companies still need to comply with Montana's unisex requirement but can file their life and annuities products and forms through the Compact. The IIPRC Office will be issuing further guidance in September as it works with the Montana Department of Insurance to implement the Compact legislation. Montana does not collect filing fees.

Step-by-step directions for adding a state to your filing - open or closed - may be found on the Insurance Company Resources page. Remember that there are no additional IIPRC fees, but applicable states fees are required. Another key point to remember is that you must be licensed to do business in each of the states.

The IIPRC Office will send out reminders as the effective dates get closer, but make sure that you mark your calendars and plan accordingly. All state specific resources on the Insurance Company Resources page of the website will be updated and announced before the effective dates.