[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.J. Res. 414 Introduced in House (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.
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