Delaware Delivers Consumer Protection with Interstate Compact

Aug 6, 2021

Last week Governor John C. Carney signed into law H. 229, which makes Delaware the 45th state plus Puerto Rico and Washington D.C. to join the Interstate Insurance Product Regulation Compact. Sponsored by Representative Bill Bush and Senator Spiros Mantzavinos, the legislation was introduced at the request of Insurance Commissioner Trinidad Navarro and sailed through the legislature with unanimous votes in both chambers within three weeks without any debate.

While many consumers probably are not familiar with the Compact, many have benefited from it and its strong consumer protections.

In the wake of the COVID-19 pandemic, it became clear that consumers across all jurisdictions need ready access to financial protection products offered by the life insurance industry. The Compact helps expedite access through its uniform product standard approvals across most states. Since 2007, the Compact has approved more than 8,300 insurance products from more than 300 companies.

In 2020, the Compact adopted its Expedited Review Program for streamlined and faster product approvals. By joining the Compact, Delaware 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 over 100 uniform standards relating to four product lines – life insurance, annuities, disability income and long-term care insurance. These 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

Vince Ryan

Vince Ryan is Regional Vice President, State Relations at the American Council of Life Insurers (ACLI). He is responsible for state legislative and regulatory affairs in Delaware, New Jersey, Iowa, South Dakota and Wyoming. He joined the ACLI in 2019 from the Delaware Insurance Department.