Compact for Consumers!

Mar 5, 2024

If you asked insurance consumers to describe the Interstate Insurance Product Regulation Compact, you’d probably get a lot of blank stares. But many Americans have benefited from the Compact and its strong consumer protections.

The Compact helps expedite access to financial protection products through its uniform product standard approvals across most states. Since 2007, the Compact has approved 13,695 insurance products from more than 300 companies.

Last week Governor Kristi Noem signed into law H. 1091, which makes South Dakota the 46th state plus Puerto Rico and Washington D.C. to join the Compact. Sponsored by S.D. Representative Amber Arlint and Senator Steve Kolbeck, the legislation was introduced in coordination with Director of Insurance Larry Deiter. Once introduced, the bill sailed through the legislature in the span of five weeks with a unanimous vote in the Senate, and a near unanimous vote in the House.

In 2020, the Compact adopted its Expedited Review Program for streamlined and faster product approvals. By joining the Compact, South Dakota will:

  • Give consumers faster access to competitive insurance products;
  • Enhance the efficiency and effectiveness of how insurance products are filed, reviewed and approved; and
  • Take advantage of uniformity through the development and application of uniform product standards that contain strong consumer protections.

The Compact dates to 2002 when the National Association of Insurance Commissioners developed model legislation that states could adopt to join the Compact. Since then, the Compact has helped millions of Americans achieve greater financial protection and stability.

The Compact has adopted 115 uniform standards related to over 20 types of insurance and 140 various sub-types of insurance. These uniform standards address underlying policies and contracts and their various benefits and features, plus policy applications, enrollment forms, rate schedules, riders, and advertising material.

It continues to develop new, and update existing, product standards, including those pertaining to individual life insurance and group annuities. ACLI has also recommended the development and adoption of additional standards. Moreover, the Compact’s Interstate Insurance Product Regulation Commission serves as a resource for states and regulated entities in maintaining a nationally recognized regulatory review process.

To learn more about the Compact, go to

Alex Young

Alex Young is Legislative Director, State Relations at the American Council of Life Insurers (ACLI). He is responsible for state legislative and regulatory affairs in Kansas, Nebraska, South Dakota, and North Dakota. He joined ACLI in 2018.