A Beginner’s Guide to Interstate Compacts

During the Spring 2004 NAIC meeting, it was announced that Colorado has become the first state to adopt the updated Interstate Insurance Product Regulation Compact developed by the NAIC. Several other states have the compact before their legislatures and the goal is to have at least 30 states ratify the compact by 2008. Many readers that may have been aware of the interstate compact under development might still be unfamiliar with the interstate compact process in general. This article provides a simple explanation of the interstate compact process, describes some of the current interstate compacts in place, and provides readers with a general background of the interstate compact concept.