NAIC Product Filing Compact Draft Due Friday

She says those points include a state's right to opt out of the compact if it does not want to participate in the compact for certain product lines; the inclusion of advertising requirements as part of the compact; and preemption of provisions in the compact.

Parachini explains that, for the sake of uniformity, it is important that states not readily opt out of the compact once they agree to participate. Language in the draft also needs to be strong enough so that the compact's provisions would not be preempted, she adds.

And, with the exception of long-term care insurance, for which advertising is now filed with state regulators, other products should not have advertising filing requirements with the compact, she says.

Creating compact advertising filing requirements for disability insurance, life insurance and annuities would create a new standard for insurers that do not currently have to file advertising for those products, according to Parachini.

In any case, ACLI will be looking at the new draft closely, because getting the compact enacted will be a "heavy lift," Parachini says.

Language must be the same in different states, and making changes will be difficult once the model is enacted, Parachini says.