In the stunning decision of Amica Life Insurance Company v. Wertz, the Colorado Supreme Court dealt a serious blow to the Interstate Insurance Product Regulation Commission (the “Interstate Insurance Compact” or the “Compact”).
The Court ruled that the Colorado General Assembly was not permitted to delegate authority to the Interstate Insurance Compact to adopt a life insurance product standard that varied from varying law in the Colorado Insurance Code. This decision is a stunning setback for state insurance regulation and, in an effort to preserve a more generous suicide exclusion in Colorado law, the Colorado Supreme Court has called into question the Compact product standards, at least in Colorado. However, the ripple effects might be felt nationally. Congressional action may provide an elegant solution to this new problem.
Our attorneys Mary Jo Hudson and James Eklund take a closer look at the background of the case, the recent decision and next steps.