On January 6, 2011, New Jersey Governor Chris Christie signed legislation on the Interstate Insurance Product Regulation Compact (the “Compact”).  With the passage of this legislation, New Jersey becomes a member of the national commission that develops uniform standards and consumer protections for asset-based insurance products (e.g., life insurance, annuities, disability income and long-term care insurance).  The Compact also establishes a clearinghouse for review of these product filings.

Proponents of the legislation believe that the Compact’s centralized filing point will improve the efficiency of regulatory decisions, allowing insurers who are doing business in multiple states to compete more effectively in the market place, while continuing to protect consumers through the application of best national practices.

New Jersey is the 38th member to join the Compact, bringing the nationwide premium volume represented by the states in the Compact to just over two-thirds.

Starting January 21, 2011, insurers will be able to include New Jersey for all life insurance and annuity product filings submitted or approved through the Compact.  Long-term care policy filings can not go through the Compact currently.  However, this decision is scheduled to be revisited by the end of 2011.

For a copy of the Compact legislation, click here.