< Back to H.J.Res. 414 (103rd Congress, 1993–1994)

Text of To authorize and encourage States to adopt interstate compacts for the regulation of interstate insurance.

This resolution was introduced on September 23, 1994, in a previous session of Congress, but was not enacted. The text of the bill below is as of Sep 23, 1994 (Introduced).

Source: GPO

HJ 414 IH

103d CONGRESS

2d Session

H. J. RES. 414

To authorize and encourage States to adopt interstate compacts for the regulation of interstate insurance.

IN THE HOUSE OF REPRESENTATIVES

September 23, 1994

Mr. MCMILLAN introduced the following joint resolution; which was referred jointly to the Committees on the Judiciary and Energy and Commerce


JOINT RESOLUTION

To authorize and encourage States to adopt interstate compacts for the regulation of interstate insurance.

Whereas Article I of the Constitution of the United States authorizes cooperation among the States through the use of interstate compacts;

Whereas the McCarran-Ferguson Act recognizes that the regulation by the several States of the business of insurance is in the public interest;

Whereas the States through the National Association of Insurance Commissioners have been engaged in an ongoing effort to improve regulation through a voluntary solvency standard and accreditation program;

Whereas there are more than 140 interstate compacts in effect today that have proven to be effective and efficient mechanisms for the States to strengthen and coordinate their regulatory responsibilities, particularly as they affect complicated and comprehensive multistate issues;

Whereas it is in the best interests of the people of the United States for the regulatory capability of those States to be enhanced; and

Whereas the business of insurance is increasingly a multistate and international business: Now, therefore, be it

    Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. INSURANCE COMPACTS.

    The Congress acknowledges the benefits of interstate compacts to address multistate problems. To the extent that they are not already empowered to do so, the States are encouraged and authorized to study and to adopt, where appropriate, interstate insurance regulatory compacts to address regulatory issues, including the regulation of alien (non-United States) insurers and reinsurers, insurer solvency, rehabilitation and liquidation, guaranty fund protection, and insurance agent licensing.

SEC. 2. TIME LIMITATIONS.

    The States which have a majority of property and liability insurance premiums paid in the United States should adopt an interstate compact relating to the certification of alien insurers and reinsurers referred to in section 1 within 2 years of the date of the enactment of this joint resolution. Such compact shall establish minimum standards for alien insurers and reinsurers to be certified to do business within such States within 3 years of such date of enactment.

SEC. 3. REPORT.

    The Secretary of Commerce shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report which contains--

      (1) a determination of the effectiveness of compacts referred to in section 1 with respect to the certification of alien insurers and reinsurers and other compact functions,

      (2) an assessment of State membership and participation in such compacts, and

      (3) a description of the substantive provisions of any such compacts.

    The first report shall be submitted not later than 27 months after the date of the enactment of this joint resolution and thereafter every year after such date.