Connecticut House Bill HB05343

Connecticut 2016 Regular Session

• Introduced: 2/18/16
• Refer: 2/18/16

Caption

An Act Adopting The National Association Of Insurance Commissioners' Interstate Insurance Product Regulation Compact.

Impact

If enacted, HB 05343 would significantly impact state laws governing insurance product approvals. It will allow insurance products certified by the commission to bypass individual state review processes, thus promoting a more cohesive regulatory landscape. However, each state retains the option to 'opt-out' of certain uniform standards if it determines that they do not sufficiently protect its citizens. This could lead to potential disparities in consumer protections depending on the choices of each state.

Summary

House Bill 05343 seeks to adopt the National Association of Insurance Commissioners' Interstate Insurance Product Regulation Compact, which aims to create a more streamlined process for approving and regulating insurance products across member states. The bill establishes a commission that will develop uniform standards for product lines, thereby allowing insurers to receive prompt reviews and approvals for their product offerings. This initiative is seen as a move to facilitate commerce in the insurance marketplace, reducing redundancy and inconsistency among various state regulations.

Contention

Opponents of HB 05343 have raised concerns that adopting a one-size-fits-all approach could undermine local regulatory standards and may not adequately address specific consumer needs. Fears persist that the compact may diminish the ability of individual states to enforce stricter protections, particularly for vulnerable populations such as the elderly or low-income policyholders. Conversely, proponents argue that standardized regulations can foster healthy competition and simplify compliance for insurers.