The Interstate Insurance Product Regulation Commission (“IIPRC”) issued a press release on January 6, 2012 (the “Release”) announcing that Illinois will accept variable life and annuity product filings using Interstate Insurance Compact (“Compact”) standards.  The Compact is a modernization initiative promoting uniform product standards across states.  The IIPRC is a central point for electronic filing of products.  Among other things, the IIPRC through the Compact has adopted uniform standards covering different types of variable life insurance policies and annuity contracts.  These standards are based on the National Association of Insurance Commissioners (“NAIC”) Variable Life Insurance Policy Model Regulation and the NAIC Variable Annuity Model Regulation.  The standards apply to variable products where the investment performance of the separate account is directly reflected in the variable investment option.

According to the Release, Illinois initially had a stay of effectiveness of the Compact’s uniform standards, but has now lifted the stay, with the exception of the additional standards for market value adjustment (MVA) through separate accounts.  Illinois has requested a 120 stay in connection with this feature while it pursues legislative action.

Click here for a copy of the Release.

Click here for the Compact Standards.

Click here for a copy of Illinois’ request for a 120 day stay.