More states join anticonsumer insurance regulation 'compact'.State legislatures around the country continue to embrace--or at least seriously consider the proposed Interstate Insurance Product Regulation Compact, despite widespread opposition by consumer groups and questions about its constitutionality raised by at least 40 state attorneys general. At press time, 28 states had joined the compact, and lawmakers in 10 others (Alabama, Arkansas, Connecticut, Illinois, Missouri, New Jersey, New Mexico, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , and Wisconsin) were considering the proposal, drafted by the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. . (See Insurance "Compact" Moves Ahead Despite Consumer Objections, TRIAL 10 (Aug. 2006).) While the compact's purported goal is to provide uniform product standards for certain lines of insurance--including annuities, life insurance, disability income, and long-term-care products--it essentially creates a private corporation, the Interstate Insurance Product Regulation Commission, that replaces a state's insurance regulatory authority; has sweeping legislative, executive, and judicial powers; and acts without accountability. The compact is blatantly unconstitutional: It violates separation and delegation of powers, state constitutional prohibitions on special legislation, and state constitutional guarantees of complete and equal access to the courts. One of the most objectionable provisions of the compact is its broad immunity proposal. Every member of the commission and its officers, executive director, employees, and representatives are immune from liability, both personally and in their official capacity. The compact also: * allows the insurance commissioners of states that have joined the compact to designate anyone--potentially including bankers, industry CEOs, and other insurance representatives--to be a member of the commission and cast a vote on administrative and policy matters * lacks statutory standards for public accountability * designates the location of the commission's principal office in a state as the only venue for judicial proceedings judicial proceedings n. any action by a judge re: trials, hearings, petitions, or other matters formally before the court. (See: judicial) by or against the commission * creates a cumbersome and complex process for opting out of a uniform standard or law * circumvents state confidentiality and nondisclosure laws * provides no assurance of consumer protections. The model has now been enacted in Puerto Rico and 28 states (Alaska, Colorado, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). , North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. , Ohio, Oklahoma, Pennsylvania, Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. , Texas, Utah, Vermont, Virginia, Washington, West Virginia Washington is a census-designated place (CDP) in Wood County, West Virginia, along the Ohio River. The population was 1,170 at the 2000 census. The CDP is home to the Washington Works, one of the largest single facilities of chemicals manufacturing giant DuPont. , and Wyoming). The compact became operational last year for purposes of adopting uniform product standards and for accepting product filings after 26 states joined it. |
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