Interstate Insurance Receivership Compact

Beginning in 1990, the National Conference of Insurance Legislators (NCOIL) and the National Association of Insurance Commissioners (NAIC) Midwest Zone developed the Interstate Insurance Receivership Compact. The purpose of the compact is to develop more uniform and coordinated approaches to dealing with insolvent insurance companies, and particularly multistate insurers. The compact establishes a commission to oversee and monitor insurer receiverships. The commissioners would be appointed by each member state. All states are eligible to join the compact. It becomes effective when two states enact it into law. It does not reference congressional consent.