HB 439-INSURANCE PRODUCT REGULATION COMPACT  9:12:03 AM CHAIR RALPH SEEKINS announced CSHB 439(L&C) am to be up for consideration. RYNNIEVA MOSS, Staff for Representative John Coghill, introduced the bill. The Interstate Insurance Product Regulation Act would culminate in the regulation of insurance, annuities, disability income, and long-term care products. Alaska would join twenty other states in creating a commission governed collectively by the states that would establish uniform standards for those products. Language was added on the House floor that would direct the director of the Division of Insurance to opt out of the commission if the standards adopted are less consumer protective than are currently in state law. 9:14:58 AM LINDA HALL, Director, Division of Insurance, (DOI) said CSHB 439(JUD) am is a model act that was proposed by the National Association of Insurance Commissioners in response to a number of perceived needs, including a recognition that the population is becoming increasingly mobile and that insurance products are not state specific. Life insurance and annuities are products that people keep for a long time and are not like an automobile policy, which is state specific. There is a move by certain portions of the insurance industry toward federal regulation but Ms. Hall stated that she is a strong supporter of state regulation. She said consumer protections are best done on a state-by-state basis where there is better access to the regulator. The other particular need is "speed to market of products," she said. The basic structure of this particular compact is that it would delegate to a commission the authority to develop uniform standards for products. 9:16:55 AM Insurance companies could choose to file either in the state or file with the commission. Each state member would have a single vote and it would take a two-thirds majority of the commission to adopt the product standard. There are two ways to opt out of individual standards. Either the regulator could decide the standard is not appropriate or the Legislature could opt out of any standard they feel does not meet the needs of consumers. She said she believes the standards adopted by the commission would provide greater consumer protection. CHAIR SEEKINS asked Mr. George whether he was in favor of the bill. JOHN GEORGE, American Council of Life Insurers, expressed support of the bill. CHAIR SEEKINS closed public testimony. SENATOR CHARLIE HUGGINS moved CSHB 439(L&C) am from committee with individual recommendations and attached fiscal notes. Hearing no objections, the motion carried.