AN ACT ADOPTING THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS' INTERSTATE INSURANCE PRODUCT REGULATION COMPACT.

OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 ¯ (860) 240-0200

http: //www. cga. ct. gov/ofa

HB-5028

AN ACT ADOPTING THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS' INTERSTATE INSURANCE PRODUCT REGULATION COMPACT.

Agency Affected	Fund-Effect	FY 07 $	FY 08 $
Insurance Dept.	IF - Revenue Loss	Potential Minimal	Potential Minimal

Note: IF=Insurance Fund

Municipal Impact: None

Explanation

The bill adopts the National Association of Insurance Commissioners' (NAIC) Interstate Insurance Product Regulation Compact. Under the bill, insurers that would like a product approved in Compact-participating states in which they hold a license must file appropriate documents with the commission. Although insurers are not prohibited from filing with the state, insurers would save time and gain increased market exposure by filing with the commission. The fee to file and register for product approval with the state is $15. To the extent that fewer insurers file products with the state, the state could experience a revenue loss as less filing fees are collected by the state.

The bill also makes other changes to insurance product regulation, none of which have a fiscal impact.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.