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 reg-
ulation by the several States of the business of insurance
is in the public interest;
Whereas the States through the National Association of In-
surance 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 ef-
fect today that have proven to be effective and efficient
mechanisms for the States to strengthen and coordinate
their regulatory responsibilities, particularly as they af-
fect 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
Resolved by the Senate and House of Representatives
of the United States of America in Congress assembled,
SECTION 1. INSURANCE COMPACTS.
The Congress acknowledges the benefits of interstate
compacts to address multistate problems. To the extent
that they are not already empowered to do so, the States
are encouraged and authorized to study and to adopt,
where appropriate, interstate insurance regulatory com-
pacts to address regulatory issues, including the regulation
of alien (non-United States) insurers and reinsurers, in-
surer solvency, rehabilitation and liquidation, guaranty
fund protection, and insurance agent licensing.
SEC. 2. TIME LIMITATIONS.
The States which have a majority of property and
liability insurance premiums paid in the United States
should adopt an interstate compact relating to the certifi-
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cation of alien insurers and reinsurers referred to in sec-
tion 1 within 2 years of the date of the enactment of this
joint resolution. Such compact shall establish minimum
standards for alien insurers and reinsurers to be certified
to do business within such States within 3 years of such
date of enactment.
SEC. 3. REPORT.
The Secretary of Commerce shall submit to the Com-
mittee on Energy and Commerce of the House of Rep-
resentatives and the Committee on Commerce, Science,
and Transportation of the Senate a report which con-
tains—
(1) a determination of the effectiveness of com-
pacts referred to in section 1 with respect to the cer-
tification of alien insurers and reinsurers and other
compact functions,
(2) an assessment of State membership and
participation in such compacts, and
(3) a description of the substantive provisions
of any such compacts.
The first report shall be submitted not later than 27
months after the date of the enactment of this joint resolu-
tion and thereafter every year after such date.
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