HB75 Alabama 2011 Session

Summary

Primary Sponsor

Gregory Canfield

Republican

Co-Sponsors

Joe FaustGreg Wren

Session

Regular Session 2011

Title

Interstate Insurance Product Regulation Compact, adopted

Summary

HB75 would let Alabama join the Interstate Insurance Product Regulation Compact to uniformly approve certain life, annuity, disability income, and long-term care insurance products through a central commission, with the Alabama Commissioner of Insurance as the state's representative.

What This Bill Does

Alabama would join the Interstate Insurance Product Regulation Compact and designate the Commissioner of Insurance as Alabama’s representative on the new Interstate Insurance Product Regulation Commission. The Commission would develop uniform standards for individual and group annuity, life, disability income, and long-term care insurance products and would review and approve or disapprove product filings and related advertisements. States can opt out of uniform standards under the commission’s rules, and the act describes governance, funding, and enforcement mechanisms for the commission.

Who It Affects

• Consumers in Alabama would gain standardized protections and clearer, faster product approvals and advertising through a uniform regulatory framework.
• Insurers and third-party filers would file products and advertisements with the Commission and follow its uniform standards, while Alabama regulators interact with the Commission via the designated state representative; options to opt out and the rules governing implementation would also affect them.

Key Provisions

• Alabama joins the Interstate Insurance Product Regulation Compact and designates the Alabama Commissioner of Insurance as the state's representative to the Commission.
• The Compact aims to promote consumer interests by creating uniform standards for annuity, life, disability income, and long-term care insurance products and to establish a central review clearinghouse.
• The Commission shall have the power to promulgate rules and uniform standards that are binding in compacting states for the covered products and related advertisements.
• A compacting state may opt out of a uniform standard under Article VII, and long-term care standards must meet or exceed NAIC model protections unless otherwise allowed.
• The Commission will receive and review product filings and rate filings for disability income and long-term care products and approve those that meet the uniform standards.
• The Commission may require pre-approval of advertisements for products where the Commission determines advertising could mislead the public, and may approve the ads that meet the standards.
• The Commission can establish a self-certification process for certain products and advertisements without prior Commission approval.
• The Commission is organized with a management committee (including representatives from large premium-volume states and others), elects officers, and can hire staff and set policies.
• There will be legislative and advisory committees, including consumer representatives and insurance industry representatives.
• The Commission is exempt from state taxes, must publish bylaws, maintain records, conduct audits, and provide annual reports.
• The Commission can enforce compliance, provide for dispute resolution, and may issue subpoenas and sue or be sued as needed.
• Filing of products and ads with the Commission requires fees; products approved can be sold in compacting states; public access to filings is governed with privacy protections.
• Disputes about Commission decisions can be appealed to review panels and, where appropriate, judicial review is available.
• Withdrawal, default, and dissolution rules govern how states may leave or be removed from the compact, and consequences if membership falls to one state.
• The Compact becomes effective after two compacting states enact it, with additional states joining as thresholds are met; Alabama’s act would take effect immediately upon passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance