Vaughan: 14 States Have Introduced Compact Bills

The NAIC has a timeline that calls for states to put product standards in place by the end of the year.

Vaughan says she believes the American Council of Life Insurers, Washington, has been active in persuading states to support enactment of the compact. However, she reports that some commissioners say the ACLI could be more active.

The ACLI maintains that it is committed to uniform enactment of the compact model act, not just to promoting a proposal that would give life insurers the option of submitting to regulation by a federal agency.

Vaughan also confirms that some commissioners have approached local and state chapters of the National Association of Insurance and Financial Advisors, Falls Church, Va., regarding the association's new stance supporting optional federal regulation. These commissioners believe that some NAIFA members who voted for the optional federal chartering policy may not have intended for the policy to state what it currently says, Vaughan reports.