Weekly Tip: Understanding the Insurance Compact Rulemaking Process, Part 1

 

Weekly Tips

Understanding the Insurance Compact Rulemaking Process, Part 1

7/12/2017​

Have you ever wondered how the Uniform Standards come to be? Over the course of the next few weeks, the Insurance Compact will provide an overview of the Uniform Standards development process, which is deliberative and transparent. In this week’s Weekly Tip, we will explain the advance rulemaking process. The first Uniform Standards were adopted in 2006, after following this same process.

Today, Company filers can file in up to 45 states* utilizing one set of Uniform Standards for one review. The Product Standards Committee is a committee of 20 Insurance Compact regulators charged with developing and updating uniform product standards used to review product filing submissions with the Insurance Compact. The Committee members are subject-matter experts appointed on an annual basis who meet several times a month. Currently, Missouri serves as the Chair and Minnesota serves as the Vice Chair. The full membership list may be found on the About the IIPRC page of the Insurance Compact website.

At the onset of uniform standards development, the Product Standards Committee will convene a public teleconference for the purpose of exposing the initial draft and receiving initial comments. After this public call, the regulators of the Product Standards Committee will meet to take the initial draft and initial comments received into further consideration. Depending on the nature of the uniform standards, there may be additional public calls to address any questions the Committee may have as a result of the initial review, and/or to receive further feedback on revisions to the draft. At the conclusion of its work, the Committee will convene a call for the purpose of exposing the final draft.

During the public calls, the members of the Consumer and Industry Advisory Committees, the Legislative Committee, members of the Commission not on the Product Standards Committee, and all other interested parties are asked to provide comments on the draft uniform standards. This is the first, and not the last, opportunity for comments to be submitted on the draft uniform standards. All are encouraged to provide comments in order to assist the Committee with drafting uniform standards compatible with current product design so that they are used by filing companies. The comments made during the public calls are taken into consideration during the initial review of the drafts by the members of the Committee. The Committee also researches particular provisions and concepts using approved products already on the market.

Once the Product Standards Committee has deemed that the draft is complete, they will present a recommendation to the Management Committee during a meeting of the Management Committee. A Transmittal Memo will accompany the draft uniform standards. The Transmittal Memo is a concise explanatory statement that details the process and key changes made by the Committee in the development of the uniform standards. All materials for the public conference calls will be made available to all via email notice, and also posted to the Event Calendar on the Insurance Compact website.

Next week, the Insurance Compact will review what happens once the recommendation has been presented to the Management Committee. If you have any questions about this Weekly Tip, or the Insurance Compact, please contact the Insurance Compact Office at Comments@insurancecompact.org.

Connecticut may be included in product filings later this month as they became effective members on July 1st. For more information, please see the Weekly Tip issued on June 21st, available on the Insurance Compact website under News and Announcements, and in the Weekly Tip Archive.