ACT NO. 70
Banking and insurance; interstate insurance product regulation compact
This act creates the Interstate Product Regulation Commission as a central clearinghouse to provide prompt review of covered insurance products under uniform standards, improving the coordination of regulatory resources and expertise between state insurance departments. Individual and group annuity, life insurance, disability income, and long-term care insurance products are covered under the compact. The act is in response to the passage of the federal State Modernization and Regulatory Transparency (SMART) Act which requires the states to adopt such legislation or the federal government will impose a federal structure for the regulation of insurance.
Effective Date: July 1, 2005. The compact shall become effective and binding upon legislative enactment of the compact into law by two compacting states; provided, the commission shall become effective for purposes of adopting uniform standards for, reviewing, and giving approval or disapproval of, products filed with the commission that satisfy applicable uniform standards only after 26 states are compacting states or, alternatively, by states representing greater than 40 percent of the premium volume for life insurance, annuity, disability income, and long-term care insurance products, based on records of the NAIC for the prior year. Thereafter, it shall become effective and binding as to any other compacting state upon enactment of the compact into law by that state.
The Vermont General Assembly
115 State Street