Weekly Tip: Update on Five-Year Review Process

 

Weekly Tips

Update on Five-Year Review Process

4/16/2014

We would like to take a moment of your time to bring you up-to-date on the five-year review process we are currently conducting on the adopted Uniform Standards, Rules, and Operating Procedures.  Similar to administrative procedures in state regulatory agencies, the Insurance Compact "Rulemaking Rule" requires the Insurance Compact to review its Uniform Standards, Rules and Operating Procedures every five years.

Some may recall that the Insurance Compact initiated the five-year review on the Uniform Standards that were adopted and effective prior to December 2007 in July 2012.  All comments were taken into careful consideration by the members of the Product Standards Committee.  The Product Standards Committee recently made a recommendation to the Management Committee regarding proposed amendments to the Standards for Accelerated Death Benefits.  Their recommendation was that these proposed amendments be published on the Docket for a 60-day comment period.  You may find these amendments on the Docket.  We would encourage any and all interested parties to review these amendments and provide any comments.  Comments may be submitted until June 13th.  After the 60-day comment period has expired, a hearing will be held before the Management Committee and Commission take final action. 

It is anticipated that the Product Standards Committee will be making an additional recommendation to the Management Committee during the April 28th teleconference to finalize the first phase of the five-year review.  The Product Standards Committee convened a public call on April 15th for the purpose of bringing forward their recommendation before the call on April 28th.  Once the Management Committee accepts the recommendation from the Product Standards Committee, there will be a 60-day comment period and a public hearing before the Management Committee and Commission take final action.   The recommendation for all the proposed changes/amendments to Uniform Standards as a result of Phase 1 is that they apply to product filings on a going forward basis and would be effective after they are adopted and implemented.

You may be wondering what Phase 1 is.  The work of the Product Standards Committee was broken up into phases for each Notice that has been issued since July 3, 2012.  The Product Standards Committee will next consider public comments along with recommendations from the IIPRC Office for the following Phases:

  • Phase 2 (Notice issued on January 2, 2013 covering Uniform Standards, Rules, and Operating Procedures adopted between January 1, 2008 and June 30, 2008)
  • Phase 3 (Notice issued on August 1, 2013 covering Uniform Standards, Rules, and Operating Procedures adopted between July 1, 2008 and December 31, 2008)  

We have extended the comment period for Phase 4 (Notice issued on January 2, 2014 covering Uniform Standards, Rules, and Operating Procedures adopted between January 1, 2009 and June 30, 2009) until June 1, 2014.

Please monitor the IIPRC Event Calendar and Docket for specific information.  The information on the Docket has been updated to reflect the various phases.  Please visit the page to familiarize yourself with these changes.  If you have any written comments pertaining to the Uniform Standards in Phase 2, 3 or 4, or changes being considered by the Management Committee as recommended by the Product Standards Committee in Phase 1, please submit them to the IIPRC Office at comments@insurancecompact.org.

If you have any questions or comments about this Weekly Tip, the five-year review process, or the Insurance Compact's Uniform Standards, Rules, and Operating Procedures please contact the IIPRC Office.