FOR IMMEDIATE RELEASE

PENNSYLVANIA JOINS THE INTERSTATE COMPACT

CHICAGO, IL  (December 5, 2005) -  Pennsylvania Governor Edward G. Rendell signed the Interstate Compact on November 23, 2005 making Pennsylvania the 19^th state to join the Compact. With eight other states, including Texas, joining the Compact so far in 2005, the goal of 26 states or states with 40 percent of the premium volume is well within reach over the next year. The current compacting states represent approximately 30 percent of the premium volume. The nineteen states include Colorado, Hawaii, Idaho, Indiana, Iowa, Kansas, Maine, Maryland, Nebraska, New Hampshire, North Carolina, Pennsylvania, Rhode Island, Texas, Utah, Vermont, Virginia, Washington and West Virginia.  

"We are very excited to be in on the ground floor of this very important initiative that will modernize the way products are filed and approved," said Pennsylvania Insurance Commissioner Diane Koken, the current NAIC President, "I commend the Governor and the legislature for recognizing the benefits that the Compact will bring to Pennsylvania through use of a uniform process and standards that will ensure strong consumer protections in an ever-changing marketplace."

  "As state insurance regulators, we should be very proud of this significant effort and accomplishment as we were initially told that it could take up to seven years to get this initiative passed in the requisite number of states," said Maine Insurance Superintendent Alessandro Iuppa, the NAIC President for 2006, "As a compacting state, I appreciate all the efforts of the NAIC in developing consensus in many areas and in proposing strong uniform standards. As incoming NAIC President, I will continue to focus on this critical initiative as I believe that working together, we can meet and exceed the Compact's operational goals before the end of 2006."  

At the NAIC's Winter National Meeting, the Speed-to-Market Task Force will consider three additional product standards dealing with immediate annuities, bringing the total number of standards developed by the Working Group to 38.  The Interstate Compact Implementation Task will also meet to continue its discussion on proposed rules for the Compact. In addition, the compacting states will also hold a meeting in conjunction with the NAIC's Winter meeting. 

ABOUT THE NAIC

About the NAIC Headquartered in Kansas City, Missouri, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and the five U.S. territories. The NAIC’s overriding objective is to assist state insurance regulators in protecting consumers and helping maintain the financial stability of the insurance industry by offering financial, actuarial, legal, computer, research, market conduct and economic expertise. Formed in 1871, the NAIC is the oldest association of state officials. For more than 135 years, state-based insurance supervision has served the needs of consumers, industry and the business of insurance at-large by ensuring hands-on, frontline protection for consumers, while providing insurers the uniform platforms and coordinated systems they need to compete effectively in an ever-changing marketplace. For more information, visit NAIC on the Web at: http://www.naic.org/press_home.htm

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