How will the Compact raise product standards and consumer protection?
The standard-setting process in the Compact engages the collective expertise of the Member insurance departments as well as seeks the input of the greater state insurance regulatory community through the NAIC. Comments and concerns from legislative representatives, consumers and industry assist in informing our process to ensure high level standards. As the process is open to public participation, all interested parties are invited to comment as well. Another important feature of the process is its voluntary nature. If product standards created by the IIPRC are not adequate, states will opt-out of the uniform standards, and the Compact will not work. Finally, the Compact requires supermajorities of both the Management Committee and the full Commission membership of the IIPRC to approve uniform product standards. These features promote a consensus-based approach to decision-making, which promises to produce higher product standards to benefit consumers, in exchange for an effective sing
