IA

103D CONGRESS

2D SESSION H. J. RES. 414

To authorize and encourage States to adopt interstate compacts for the

regulation of interstate insurance.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 23, 1994

Mr. MCMILLAN introduced the following joint resolution; which was referred

jointly to the Committees on the Judiciary and Energy and Commerce

JOINT RESOLUTION

To authorize and encourage States to adopt interstate

compacts for the regulation of interstate insurance.

Whereas Article I of the Constitution of the United States

authorizes cooperation among the States through the use

of interstate compacts;

Whereas the McCarran-Ferguson Act recognizes that the regulation by the several States of the business of insurance

is in the public interest;

Whereas the States through the National Association of Insurance Commissioners have been engaged in an ongoing

effort to improve regulation through a voluntary solvency

standard and accreditation program;
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Whereas there are more than 140 interstate compacts in effect today that have proven to be effective and efficient

mechanisms for the States to strengthen and coordinate

their regulatory responsibilities, particularly as they affect complicated and comprehensive multistate issues;

Whereas it is in the best interests of the people of the United

States for the regulatory capability of those States to be

enhanced; and

Whereas the business of insurance is increasingly a

multistate and international business: Now, therefore, be

it

1 Resolved by the Senate and House of Representatives

2 of the United States of America in Congress assembled,

3 SECTION 1. INSURANCE COMPACTS.

4 The Congress acknowledges the benefits of interstate

5 compacts to address multistate problems. To the extent

6 that they are not already empowered to do so, the States

7 are encouraged and authorized to study and to adopt,

8 where appropriate, interstate insurance regulatory com9 pacts to address regulatory issues, including the regulation

10 of alien (non-United States) insurers and reinsurers, in11 surer solvency, rehabilitation and liquidation, guaranty

12 fund protection, and insurance agent licensing.

13 SEC. 2. TIME LIMITATIONS.

14 The States which have a majority of property and

15 liability insurance premiums paid in the United States

16 should adopt an interstate compact relating to the certifi-
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1 cation of alien insurers and reinsurers referred to in sec2 tion 1 within 2 years of the date of the enactment of this

3 joint resolution. Such compact shall establish minimum

4 standards for alien insurers and reinsurers to be certified

5 to do business within such States within 3 years of such

6 date of enactment.

7 SEC. 3. REPORT.

8 The Secretary of Commerce shall submit to the Com9 mittee on Energy and Commerce of the House of Rep10 resentatives and the Committee on Commerce, Science,

11 and Transportation of the Senate a report which con12 tains—

13 (1) a determination of the effectiveness of com14 pacts referred to in section 1 with respect to the cer15 tification of alien insurers and reinsurers and other

16 compact functions,

17 (2) an assessment of State membership and

18 participation in such compacts, and

19 (3) a description of the substantive provisions

20 of any such compacts.

21 The first report shall be submitted not later than 27

22 months after the date of the enactment of this joint resolu23 tion and thereafter every year after such date.

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