|
||||||||||||||||||||
|
||||||||||||||||||||
| ||||||||||||||||||||
|
||||||||||||||||||||
| ||||||||||||||||||||
1 | AN ACT concerning insurance.
| |||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||
4 | Section 1. Short title. This Act may be cited as the | |||||||||||||||||||
5 | Interstate Insurance Product Regulation Compact. | |||||||||||||||||||
6 | Section 5. Agreement. Pursuant to terms and conditions of | |||||||||||||||||||
7 | this Act, the State of Illinois seeks to join with other States | |||||||||||||||||||
8 | and establish the Interstate Insurance Product Regulation | |||||||||||||||||||
9 | Compact, and thus become a member of the Interstate Insurance | |||||||||||||||||||
10 | Product Regulation Commission. The representative of this | |||||||||||||||||||
11 | State to the Commission shall be the Director of Insurance. | |||||||||||||||||||
12 | Section 10. Ratification. The State of Illinois ratifies, | |||||||||||||||||||
13 | approves, and adopts the following interstate compact: | |||||||||||||||||||
14 | Article I. PURPOSES | |||||||||||||||||||
15 | The purposes of this Compact are, through means of joint | |||||||||||||||||||
16 | and cooperative action among the Compacting States: | |||||||||||||||||||
17 | 1. To promote and protect the interest of consumers of | |||||||||||||||||||
18 | individual and group annuity, life insurance, disability | |||||||||||||||||||
19 | income and long-term care insurance products; | |||||||||||||||||||
20 | 2. To develop uniform standards for insurance products | |||||||||||||||||||
21 | covered under the Compact; | |||||||||||||||||||
22 | 3. To establish a central clearinghouse to receive and | |||||||||||||||||||
23 | provide prompt review of insurance products covered under | |||||||||||||||||||
24 | the Compact and, in certain cases, advertisements related | |||||||||||||||||||
25 | thereto, submitted by insurers authorized to do business in | |||||||||||||||||||
26 | one or more Compacting States; | |||||||||||||||||||
27 | 4. To give appropriate regulatory approval to those | |||||||||||||||||||
28 | product filings and advertisements satisfying the | |||||||||||||||||||
29 | applicable uniform standard; | |||||||||||||||||||
30 | 5. To improve coordination of regulatory resources and |
| |||||||
|
|||||||
1 | expertise between state insurance departments regarding | ||||||
2 | the setting of uniform standards and review of insurance | ||||||
3 | products covered under the Compact; | ||||||
4 | 6. To create the Interstate Insurance Product | ||||||
5 | Regulation Commission; and | ||||||
6 | 7. To perform these and such other related functions as | ||||||
7 | may be consistent with the state regulation of the business | ||||||
8 | of insurance. | ||||||
9 | Article II. DEFINITIONS | ||||||
10 | For purposes of this Compact: | ||||||
11 | 1. "Advertisement" means any material designed to | ||||||
12 | create public interest in a Product, or induce the public | ||||||
13 | to purchase, increase, modify, reinstate, borrow on, | ||||||
14 | surrender, replace or retain a policy, as more specifically | ||||||
15 | defined in the Rules and Operating Procedures of the | ||||||
16 | Commission. | ||||||
17 | 2. "Bylaws" mean those bylaws established by the | ||||||
18 | Commission for its governance, or for directing or | ||||||
19 | controlling the Commission's actions or conduct. | ||||||
20 | 3. "Compacting State" means any State which has enacted | ||||||
21 | this Compact legislation and which has not withdrawn | ||||||
22 | pursuant to Article XIV, Section 1, or been terminated | ||||||
23 | pursuant to Article XIV, Section 2. | ||||||
24 | 4. "Commission" means the "Interstate Insurance | ||||||
25 | Product Regulation Commission" established by this | ||||||
26 | Compact. | ||||||
27 | 5. "Commissioner" means the chief insurance regulatory | ||||||
28 | official of a State including, but not limited to | ||||||
29 | commissioner, superintendent, director or administrator. | ||||||
30 | 6. "Domiciliary State" means the state in which an | ||||||
31 | Insurer is incorporated or organized; or, in the case of an | ||||||
32 | alien Insurer, its state of entry. | ||||||
33 | 7. "Insurer" means any entity licensed by a State to | ||||||
34 | issue contracts of insurance for any of the lines of | ||||||
35 | insurance covered by this Act. |
| |||||||
|
|||||||
1 | 8. "Member" means the person chosen by a Compacting | ||||||
2 | State as its representative to the Commission, or his or | ||||||
3 | her designee. | ||||||
4 | 9. "Non-compacting State" means any State which is not | ||||||
5 | at the time a Compacting State. | ||||||
6 | 10. "Operating Procedures" mean procedures promulgated | ||||||
7 | by the Commission implementing a Rule, Uniform Standard or | ||||||
8 | a provision of this Compact. | ||||||
9 | 11. "Product" means the form of a policy or contract, | ||||||
10 | including any application, endorsement, or related form | ||||||
11 | which is attached to and made a part of the policy or | ||||||
12 | contract, and any evidence of coverage or certificate, for | ||||||
13 | an individual or group annuity, life insurance, disability | ||||||
14 | income or long-term care insurance product that an Insurer | ||||||
15 | is authorized to issue. | ||||||
16 | 12. "Rule" means a statement of general or particular | ||||||
17 | applicability and future effect promulgated by the | ||||||
18 | Commission, including a Uniform Standard developed | ||||||
19 | pursuant to Article VII of this Compact, designed to | ||||||
20 | implement, interpret, or prescribe law or policy or | ||||||
21 | describing the organization, procedure, or practice | ||||||
22 | requirements of the Commission, which shall have the force | ||||||
23 | and effect of law in the Compacting States. | ||||||
24 | 13. "State" means any state, district or territory of | ||||||
25 | the United States of America. | ||||||
26 | 14. "Third-Party Filer" means an entity that submits a | ||||||
27 | Product filing to the Commission on behalf of an Insurer. | ||||||
28 | 15. "Uniform Standard" means a standard adopted by the | ||||||
29 | Commission for a Product line, pursuant to Article VII of | ||||||
30 | this Compact, and shall include all of the Product | ||||||
31 | requirements in aggregate; provided, that each Uniform | ||||||
32 | Standard shall be construed, whether express or implied, to | ||||||
33 | prohibit the use of any inconsistent, misleading or | ||||||
34 | ambiguous provisions in a Product and the form of the | ||||||
35 | Product made available to the public shall not be unfair, | ||||||
36 | inequitable or against public policy as determined by the |
| |||||||
|
|||||||
1 | Commission. | ||||||
2 | Article III. ESTABLISHMENT OF THE COMMISSION AND VENUE | ||||||
3 | 1. The Compacting States hereby create and establish a | ||||||
4 | joint public agency known as the "Interstate Insurance Product | ||||||
5 | Regulation Commission." Pursuant to Article IV, the Commission | ||||||
6 | will have the power to develop Uniform Standards for Product | ||||||
7 | lines, receive and provide prompt review of Products filed | ||||||
8 | therewith, and give approval to those Product filings | ||||||
9 | satisfying applicable Uniform Standards; provided, it is not | ||||||
10 | intended for the Commission to be the exclusive entity for | ||||||
11 | receipt and review of insurance product filings. Nothing herein | ||||||
12 | shall prohibit any Insurer from filing its product in any State | ||||||
13 | wherein the Insurer is licensed to conduct the business of | ||||||
14 | insurance; and any such filing shall be subject to the laws of | ||||||
15 | the State where filed. | ||||||
16 | 2. The Commission is a body corporate and politic, and an | ||||||
17 | instrumentality of the Compacting States. | ||||||
18 | 3. The Commission is solely responsible for its liabilities | ||||||
19 | except as otherwise specifically provided in this Compact. | ||||||
20 | 4. Venue is proper and judicial proceedings by or against | ||||||
21 | the Commission shall be brought solely and exclusively in a | ||||||
22 | Court of competent jurisdiction where the principal office of | ||||||
23 | the Commission is located.
| ||||||
24 | Article IV. POWERS OF THE COMMISSION | ||||||
25 | The Commission shall have the following powers: | ||||||
26 | 1. To promulgate Rules, pursuant to Article VII of this | ||||||
27 | Compact, which shall have the force and effect of law and | ||||||
28 | shall be binding in the Compacting States to the extent and | ||||||
29 | in the manner provided in this Compact; | ||||||
30 | 2. To exercise its rule-making authority and establish | ||||||
31 | reasonable Uniform Standards for Products covered under | ||||||
32 | the Compact, and Advertisement related thereto, which | ||||||
33 | shall have the force and effect of law and shall be binding | ||||||
34 | in the Compacting States, but only for those Products filed |
| |||||||
|
|||||||
1 | with the Commission, provided, that a Compacting State | ||||||
2 | shall have the right to opt out of such Uniform Standard | ||||||
3 | pursuant to Article VII, to the extent and in the manner | ||||||
4 | provided in this Compact, and, provided further, that any | ||||||
5 | Uniform Standard established by the Commission for | ||||||
6 | long-term care insurance products may provide the same or | ||||||
7 | greater protections for consumers as, but shall not provide | ||||||
8 | less than, those protections set forth in the National | ||||||
9 | Association of Insurance Commissioners' Long-Term Care | ||||||
10 | Insurance Model Act and Long-Term Care Insurance Model | ||||||
11 | Regulation, respectively, adopted as of 2001. The | ||||||
12 | Commission shall consider whether any subsequent | ||||||
13 | amendments to the NAIC Long-Term Care Insurance Model Act | ||||||
14 | or Long-Term Care Insurance Model Regulation adopted by the | ||||||
15 | NAIC require amending of the Uniform Standards established | ||||||
16 | by the Commission for long-term care insurance products; | ||||||
17 | 3. To receive and review in an expeditious manner | ||||||
18 | Products filed with the Commission, and rate filings for | ||||||
19 | disability income and long-term care insurance Products, | ||||||
20 | and give approval of those Products and rate filings that | ||||||
21 | satisfy the applicable Uniform Standard, where such | ||||||
22 | approval shall have the force and effect of law and be | ||||||
23 | binding on the Compacting States to the extent and in the | ||||||
24 | manner provided in the Compact; | ||||||
25 | 4. To receive and review in an expeditious manner | ||||||
26 | Advertisement relating to long-term care insurance | ||||||
27 | products for which Uniform Standards have been adopted by | ||||||
28 | the Commission, and give approval to all Advertisement that | ||||||
29 | satisfies the applicable Uniform Standard. For any product | ||||||
30 | covered under this Compact, other than long-term care | ||||||
31 | insurance products, the Commission shall have the | ||||||
32 | authority to require an insurer to submit all or any part | ||||||
33 | of its Advertisement with respect to that product for | ||||||
34 | review or approval prior to use, if the Commission | ||||||
35 | determines that the nature of the product is such that an | ||||||
36 | Advertisement of the product could have the capacity or |
| |||||||
|
|||||||
1 | tendency to mislead the public. The actions of Commission | ||||||
2 | as provided in this section shall have the force and effect | ||||||
3 | of law and shall be binding in the Compacting States to the | ||||||
4 | extent and in the manner provided in the Compact; | ||||||
5 | 5. To exercise its rule-making authority and designate | ||||||
6 | Products and Advertisement that may be subject to a | ||||||
7 | self-certification process without the need for prior | ||||||
8 | approval by the Commission. | ||||||
9 | 6. To promulgate Operating Procedures, pursuant to | ||||||
10 | Article VII of this Compact, which shall be binding in the | ||||||
11 | Compacting States to the extent and in the manner provided | ||||||
12 | in this Compact;
| ||||||
13 | 7. To bring and prosecute legal proceedings or actions | ||||||
14 | in its name as the Commission; provided, that the standing | ||||||
15 | of any state insurance department to sue or be sued under | ||||||
16 | applicable law shall not be affected; | ||||||
17 | 8. To issue subpoenas requiring the attendance and | ||||||
18 | testimony of witnesses and the production of evidence; | ||||||
19 | 9. To establish and maintain offices;
| ||||||
20 | 10. To purchase and maintain insurance and bonds; | ||||||
21 | 11. To borrow, accept or contract for services of | ||||||
22 | personnel, including, but not limited to, employees of a | ||||||
23 | Compacting State; | ||||||
24 | 12. To hire employees, professionals or specialists, | ||||||
25 | and elect or appoint officers, and to fix their | ||||||
26 | compensation, define their duties and give them | ||||||
27 | appropriate authority to carry out the purposes of the | ||||||
28 | Compact, and determine their qualifications; and to | ||||||
29 | establish the Commission's personnel policies and programs | ||||||
30 | relating to, among other things, conflicts of interest, | ||||||
31 | rates of compensation and qualifications of personnel; | ||||||
32 | 13. To accept any and all appropriate donations and | ||||||
33 | grants of money, equipment, supplies, materials and | ||||||
34 | services, and to receive, utilize and dispose of the same; | ||||||
35 | provided that at all times the Commission shall strive to | ||||||
36 | avoid any appearance of impropriety; |
| |||||||
|
|||||||
1 | 14. To lease, purchase, accept appropriate gifts or | ||||||
2 | donations of, or otherwise to own, hold, improve or use, | ||||||
3 | any property, real, personal or mixed; provided that at all | ||||||
4 | times the Commission shall strive to avoid any appearance | ||||||
5 | of impropriety; | ||||||
6 | 15. To sell, convey, mortgage, pledge, lease, | ||||||
7 | exchange, abandon or otherwise dispose of any property, | ||||||
8 | real, personal or mixed; | ||||||
9 | 16. To remit filing fees to Compacting States as may be | ||||||
10 | set forth in the Bylaws, Rules or Operating Procedures; | ||||||
11 | 17. To enforce compliance by Compacting States with | ||||||
12 | Rules, Uniform Standards, Operating Procedures and Bylaws;
| ||||||
13 | Drafting Note: It is recognized that the Commission must | ||||||
14 | have authority to enforce compliance by Compacting States | ||||||
15 | with the Bylaws, Rules or Operating Procedures of the | ||||||
16 | Commission. | ||||||
17 | 18. To provide for dispute resolution among Compacting | ||||||
18 | States; | ||||||
19 | 19. To advise Compacting States on issues relating to | ||||||
20 | Insurers domiciled or doing business in Non-compacting | ||||||
21 | jurisdictions, consistent with the purposes of this | ||||||
22 | Compact; | ||||||
23 | 20. To provide advice and training to those personnel | ||||||
24 | in state insurance departments responsible for product | ||||||
25 | review, and to be a resource for state insurance | ||||||
26 | departments; | ||||||
27 | 21. To establish a budget and make expenditures; | ||||||
28 | 22. To borrow money; | ||||||
29 | 23. To appoint committees, including advisory | ||||||
30 | committees comprising Members, state insurance regulators, | ||||||
31 | state legislators or their representatives, insurance | ||||||
32 | industry and consumer representatives, and such other | ||||||
33 | interested persons as may be designated in the Bylaws; | ||||||
34 | 24. To provide and receive information from, and to | ||||||
35 | cooperate with law enforcement agencies; | ||||||
36 | 25. To adopt and use a corporate seal; and |
| |||||||
|
|||||||
1 | 26. To perform such other functions as may be necessary | ||||||
2 | or appropriate to achieve the purposes of this Compact | ||||||
3 | consistent with the state regulation of the business of | ||||||
4 | insurance. | ||||||
5 | Article V. ORGANIZATION OF THE COMMISSION | ||||||
6 | 1. Membership, Voting and Bylaws. | ||||||
7 | a. Each Compacting State shall have and be limited to one | ||||||
8 | Member. Each Member shall be qualified to serve in that | ||||||
9 | capacity pursuant to applicable law of the Compacting State. | ||||||
10 | Any Member may be removed or suspended from office as provided | ||||||
11 | by the law of the State from which he or she shall be | ||||||
12 | appointed. Any vacancy occurring in the Commission shall be | ||||||
13 | filled in accordance with the laws of the Compacting State | ||||||
14 | wherein the vacancy exists. Nothing herein shall be construed | ||||||
15 | to affect the manner in which a Compacting State determines the | ||||||
16 | election or appointment and qualification of its own | ||||||
17 | Commissioner. | ||||||
18 | b. Each Member shall be entitled to one vote and shall have | ||||||
19 | an opportunity to participate in the governance of the | ||||||
20 | Commission in accordance with the Bylaws. Notwithstanding any | ||||||
21 | provision herein to the contrary, no action of the Commission | ||||||
22 | with respect to the promulgation of a Uniform Standard shall be | ||||||
23 | effective unless two-thirds (2/3) of the Members vote in favor | ||||||
24 | thereof. | ||||||
25 | c. The Commission shall, by a majority of the Members, | ||||||
26 | prescribe Bylaws to govern its conduct as may be necessary or | ||||||
27 | appropriate to carry out the purposes, and exercise the powers, | ||||||
28 | of the Compact, including, but not limited to: | ||||||
29 | i. establishing the fiscal year of the Commission; | ||||||
30 | ii. providing reasonable procedures for appointing | ||||||
31 | and electing members, as well as holding meetings, of | ||||||
32 | the Management Committee; | ||||||
33 | iii. providing reasonable standards and | ||||||
34 | procedures: | ||||||
35 | (i) for the establishment and meetings of other |
| |||||||
|
|||||||
1 | committees, and | ||||||
2 | (ii) governing any general or specific delegation | ||||||
3 | of any authority or function of the Commission; | ||||||
4 | iv. providing reasonable procedures for calling | ||||||
5 | and conducting meetings of the Commission that | ||||||
6 | consists of a majority of Commission members, ensuring | ||||||
7 | reasonable advance notice of each such meeting, and | ||||||
8 | providing for the right of citizens to attend each such | ||||||
9 | meeting with enumerated exceptions designed to protect | ||||||
10 | the public's interest, the privacy of individuals, and | ||||||
11 | insurers' proprietary information, including trade | ||||||
12 | secrets. The Commission may meet in camera only after a | ||||||
13 | majority of the entire membership votes to close a | ||||||
14 | meeting en toto or in part. As soon as practicable, the | ||||||
15 | Commission must make public (i) a copy of the vote to | ||||||
16 | close the meeting revealing the vote of each Member | ||||||
17 | with no proxy votes allowed, and (ii) votes taken | ||||||
18 | during such meeting; | ||||||
19 | v. establishing the titles, duties and authority | ||||||
20 | and reasonable procedures for the election of the | ||||||
21 | officers of the Commission; | ||||||
22 | vi. providing reasonable standards and procedures | ||||||
23 | for the establishment of the personnel policies and | ||||||
24 | programs of the Commission. Notwithstanding any civil | ||||||
25 | service or other similar laws of any Compacting State, | ||||||
26 | the Bylaws shall exclusively govern the personnel | ||||||
27 | policies and programs of the Commission;
vii. | ||||||
28 | promulgating a code of ethics to address permissible | ||||||
29 | and prohibited activities of commission members and | ||||||
30 | employees; and
viii. providing a mechanism for winding | ||||||
31 | up the operations of the Commission and the equitable | ||||||
32 | disposition of any surplus funds that may exist after | ||||||
33 | the termination of the Compact after the payment and/or | ||||||
34 | reserving of all of its debts and obligations. | ||||||
35 | d. The Commission shall publish its bylaws in a convenient | ||||||
36 | form and file a copy thereof and a copy of any amendment |
| |||||||
|
|||||||
1 | thereto, with the appropriate agency or officer in each of the | ||||||
2 | Compacting States. | ||||||
3 | 2. Management Committee, Officers and Personnel. | ||||||
4 | a. A Management Committee comprising no more than fourteen | ||||||
5 | (14) members shall be established as follows: | ||||||
6 | (i) One (1) member from each of the six (6) | ||||||
7 | Compacting States with the largest premium volume for | ||||||
8 | individual and group annuities, life, disability | ||||||
9 | income and long-term care insurance products, | ||||||
10 | determined from the records of the NAIC for the prior | ||||||
11 | year; | ||||||
12 | (ii) Four (4) members from those Compacting States | ||||||
13 | with at least two percent (2%) of the market based on | ||||||
14 | the premium volume described above, other than the six | ||||||
15 | (6) Compacting States with the largest premium volume, | ||||||
16 | selected on a rotating basis as provided in the Bylaws, | ||||||
17 | and; | ||||||
18 | (iii) Four (4) members from those Compacting | ||||||
19 | States with less than two percent (2%) of the market, | ||||||
20 | based on the premium volume described above, with one | ||||||
21 | (1) selected from each of the four (4) zone regions of | ||||||
22 | the NAIC as provided in the Bylaws. | ||||||
23 | b. The Management Committee shall have such authority and | ||||||
24 | duties as may be set forth in the Bylaws, including but not | ||||||
25 | limited to:
i. managing the affairs of the Commission in a | ||||||
26 | manner consistent with the Bylaws and purposes of the | ||||||
27 | Commission; | ||||||
28 | ii. establishing and overseeing an organizational | ||||||
29 | structure within, and appropriate procedures for, the | ||||||
30 | Commission to provide for the creation of Uniform | ||||||
31 | Standards and other Rules, receipt and review of | ||||||
32 | product filings, administrative and technical support | ||||||
33 | functions, review of decisions regarding the | ||||||
34 | disapproval of a product filing, and the review of | ||||||
35 | elections made by a Compacting State to opt out of a | ||||||
36 | Uniform Standard; provided that a Uniform Standard |
| |||||||
|
|||||||
1 | shall not be submitted to the Compacting States for | ||||||
2 | adoption unless approved by two-thirds (2/3) of the | ||||||
3 | members of the Management Committee; | ||||||
4 | iii. overseeing the offices of the Commission; and | ||||||
5 | iv. planning, implementing, and coordinating | ||||||
6 | communications and activities with other state, | ||||||
7 | federal and local government organizations in order to | ||||||
8 | advance the goals of the Commission. | ||||||
9 | c. The Commission shall elect annually officers from the | ||||||
10 | Management Committee, with each having such authority and | ||||||
11 | duties, as may be specified in the Bylaws. | ||||||
12 | d. The Management Committee may, subject to the approval of | ||||||
13 | the Commission, appoint or retain an executive director for | ||||||
14 | such period, upon such terms and conditions and for such | ||||||
15 | compensation as the Commission may deem appropriate. The | ||||||
16 | executive director shall serve as secretary to the Commission, | ||||||
17 | but shall not be a Member of the Commission. The executive | ||||||
18 | director shall hire and supervise such other staff as may be | ||||||
19 | authorized by the Commission. | ||||||
20 | 3. Legislative and Advisory Committees. | ||||||
21 | a. A legislative committee comprising state legislators or | ||||||
22 | their designees shall be established to monitor the operations | ||||||
23 | of, and make recommendations to, the Commission, including the | ||||||
24 | Management Committee; provided that the manner of selection and | ||||||
25 | term of any legislative committee member shall be as set forth | ||||||
26 | in the Bylaws. Prior to the adoption by the Commission of any | ||||||
27 | Uniform Standard, revision to the Bylaws, annual budget or | ||||||
28 | other significant matter as may be provided in the Bylaws, the | ||||||
29 | Management Committee shall consult with and report to the | ||||||
30 | legislative committee.
| ||||||
31 | b. The Commission shall establish two (2) advisory | ||||||
32 | committees, one of which shall comprise consumer | ||||||
33 | representatives independent of the insurance industry, and the | ||||||
34 | other comprising insurance industry representatives. | ||||||
35 | c. The Commission may establish additional advisory | ||||||
36 | committees as its Bylaws may provide for the carrying out of |
| |||||||
|
|||||||
1 | its functions. | ||||||
2 | 4. Corporate Records of the Commission
The Commission shall | ||||||
3 | maintain its corporate books and records in accordance with the | ||||||
4 | Bylaws. | ||||||
5 | 5. Qualified Immunity, Defense and Indemnification. | ||||||
6 | a. The Members, officers, executive director, employees | ||||||
7 | and representatives of the Commission shall be immune from suit | ||||||
8 | and liability, either personally or in their official capacity, | ||||||
9 | for any claim for damage to or loss of property or personal | ||||||
10 | injury or other civil liability caused by or arising out of any | ||||||
11 | actual or alleged act, error or omission that occurred, or that | ||||||
12 | the person against whom the claim is made had a reasonable | ||||||
13 | basis for believing occurred within the scope of Commission | ||||||
14 | employment, duties or responsibilities; provided, that nothing | ||||||
15 | in this paragraph shall be construed to protect any such person | ||||||
16 | from suit and/or liability for any damage, loss, injury or | ||||||
17 | liability caused by the intentional or willful and wanton | ||||||
18 | misconduct of that person. | ||||||
19 | b. The Commission shall defend any Member, officer, | ||||||
20 | executive director, employee or representative of the | ||||||
21 | Commission in any civil action seeking to impose liability | ||||||
22 | arising out of any actual or alleged act, error or omission | ||||||
23 | that occurred within the scope of Commission employment, duties | ||||||
24 | or responsibilities, or that the person against whom the claim | ||||||
25 | is made had a reasonable basis for believing occurred within | ||||||
26 | the scope of Commission employment, duties or | ||||||
27 | responsibilities; provided, that nothing herein shall be | ||||||
28 | construed to prohibit that person from retaining his or her own | ||||||
29 | counsel; and provided further, that the actual or alleged act, | ||||||
30 | error or omission did not result from that person's intentional | ||||||
31 | or willful and wanton misconduct. | ||||||
32 | c. The Commission shall indemnify and hold harmless any | ||||||
33 | Member, officer, executive director, employee or | ||||||
34 | representative of the Commission for the amount of any | ||||||
35 | settlement or judgment obtained against that person arising out | ||||||
36 | of any actual or alleged act, error or omission that occurred |
| |||||||
|
|||||||
1 | within the scope of Commission employment, duties or | ||||||
2 | responsibilities, or that such person had a reasonable basis | ||||||
3 | for believing occurred within the scope of Commission | ||||||
4 | employment, duties or responsibilities, provided, that the | ||||||
5 | actual or alleged act, error or omission did not result from | ||||||
6 | the intentional or willful and wanton misconduct of that | ||||||
7 | person.
| ||||||
8 | Article VI. MEETINGS AND ACTS OF THE COMMISSION | ||||||
9 | 1. The Commission shall meet and take such actions as are | ||||||
10 | consistent with the provisions of this Compact and the Bylaws. | ||||||
11 | 2. Each Member of the Commission shall have the right and | ||||||
12 | power to cast a vote to which that Compacting State is entitled | ||||||
13 | and to participate in the business and affairs of the | ||||||
14 | Commission. A Member shall vote in person or by such other | ||||||
15 | means as provided in the Bylaws. The Bylaws may provide for | ||||||
16 | Members' participation in meetings by telephone or other means | ||||||
17 | of communication. | ||||||
18 | 3. The Commission shall meet at least once during each | ||||||
19 | calendar year. Additional meetings shall be held as set forth | ||||||
20 | in the Bylaws.
| ||||||
21 | Article VII. RULES & OPERATING PROCEDURES: RULEMAKING | ||||||
22 | FUNCTIONS OF THE COMMISSION AND OPTING OUT OF UNIFORM STANDARDS | ||||||
23 | 1. Rulemaking Authority. The Commission shall promulgate | ||||||
24 | reasonable Rules, including Uniform Standards, and Operating | ||||||
25 | Procedures in order to effectively and efficiently achieve the | ||||||
26 | purposes of this Compact. Notwithstanding the foregoing, in the | ||||||
27 | event the Commission exercises its rulemaking authority in a | ||||||
28 | manner that is beyond the scope of the purposes of this Act, or | ||||||
29 | the powers granted hereunder, then such an action by the | ||||||
30 | Commission shall be invalid and have no force and effect. | ||||||
31 | 2. Rulemaking Procedure. Rules and Operating Procedures | ||||||
32 | shall be made pursuant to a rulemaking process that conforms to | ||||||
33 | the Model State Administrative Procedure Act of 1981 as | ||||||
34 | amended, as may be appropriate to the operations of the |
| |||||||
|
|||||||
1 | Commission. Before the Commission adopts a Uniform Standard, | ||||||
2 | the Commission shall give written notice to the relevant state | ||||||
3 | legislative committee(s) in each Compacting State responsible | ||||||
4 | for insurance issues of its intention to adopt the Uniform | ||||||
5 | Standard. The Commission in adopting a Uniform Standard shall | ||||||
6 | consider fully all submitted materials and issue a concise | ||||||
7 | explanation of its decision. | ||||||
8 | 3. Effective Date and Opt Out of a Uniform Standard. A | ||||||
9 | Uniform Standard shall become effective ninety (90) days after | ||||||
10 | its promulgation by the Commission or such later date as the | ||||||
11 | Commission may determine; provided, however, that a Compacting | ||||||
12 | State may opt out of a Uniform Standard as provided in this | ||||||
13 | Article. "Opt out" shall be defined as any action by a | ||||||
14 | Compacting State to decline to adopt or participate in a | ||||||
15 | promulgated Uniform Standard. All other Rules and Operating | ||||||
16 | Procedures, and amendments thereto, shall become effective as | ||||||
17 | of the date specified in each Rule, Operating Procedure or | ||||||
18 | amendment. | ||||||
19 | 4. Opt Out Procedure. A Compacting State may opt out of a | ||||||
20 | Uniform Standard, either by legislation or regulation duly | ||||||
21 | promulgated by the Insurance Department under the Compacting | ||||||
22 | State's Administrative Procedure Act. If a Compacting State | ||||||
23 | elects to opt out of a Uniform Standard by regulation, it must | ||||||
24 | (a) give written notice to the Commission no later than ten | ||||||
25 | (10) business days after the Uniform Standard is promulgated, | ||||||
26 | or at the time the State becomes a Compacting State and (b) | ||||||
27 | find that the Uniform Standard does not provide reasonable | ||||||
28 | protections to the citizens of the State, given the conditions | ||||||
29 | in the State. The Commissioner shall make specific findings of | ||||||
30 | fact and conclusions of law, based on a preponderance of the | ||||||
31 | evidence, detailing the conditions in the State which warrant a | ||||||
32 | departure from the Uniform Standard and determining that the | ||||||
33 | Uniform Standard would not reasonably protect the citizens of | ||||||
34 | the State. The Commissioner must consider and balance the | ||||||
35 | following factors and find that the conditions in the State and | ||||||
36 | needs of the citizens of the State outweigh: |
| |||||||
|
|||||||
1 | (i) the intent of the legislature to participate in, | ||||||
2 | and the benefits of, an interstate agreement to establish | ||||||
3 | national uniform consumer protections for the Products | ||||||
4 | subject to this Act; and | ||||||
5 | (ii) the presumption that a Uniform Standard adopted by | ||||||
6 | the Commission provides reasonable protections to | ||||||
7 | consumers of the relevant Product.
Notwithstanding the | ||||||
8 | foregoing, a Compacting State may, at the time of its | ||||||
9 | enactment of this Compact, prospectively opt out of all | ||||||
10 | Uniform Standards involving long-term care insurance | ||||||
11 | products by expressly providing for such opt out in the | ||||||
12 | enacted Compact, and such an opt out shall not be treated | ||||||
13 | as a material variance in the offer or acceptance of any | ||||||
14 | State to participate in this Compact. Such an opt out shall | ||||||
15 | be effective at the time of enactment of this Compact by | ||||||
16 | the Compacting State and shall apply to all existing | ||||||
17 | Uniform Standards involving long-term care insurance | ||||||
18 | products and those subsequently promulgated. | ||||||
19 | 5. Effect of Opt Out. If a Compacting State elects to opt | ||||||
20 | out of a Uniform Standard, the Uniform Standard shall remain | ||||||
21 | applicable in the Compacting State electing to opt out until | ||||||
22 | such time the opt out legislation is enacted into law or the | ||||||
23 | regulation opting out becomes effective.
Once the opt out of a | ||||||
24 | Uniform Standard by a Compacting State becomes effective as | ||||||
25 | provided under the laws of that State, the Uniform Standard | ||||||
26 | shall have no further force and effect in that State unless and | ||||||
27 | until the legislation or regulation implementing the opt out is | ||||||
28 | repealed or otherwise becomes ineffective under the laws of the | ||||||
29 | State. If a Compacting State opts out of a Uniform Standard | ||||||
30 | after the Uniform Standard has been made effective in that | ||||||
31 | State, the opt out shall have the same prospective effect as | ||||||
32 | provided under Article XIV for withdrawals. | ||||||
33 | 6. Stay of Uniform Standard. If a Compacting State has | ||||||
34 | formally initiated the process of opting out of a Uniform | ||||||
35 | Standard by regulation, and while the regulatory opt out is | ||||||
36 | pending, the Compacting State may petition the Commission, at |
| |||||||
|
|||||||
1 | least fifteen (15) days before the effective date of the | ||||||
2 | Uniform Standard, to stay the effectiveness of the Uniform | ||||||
3 | Standard in that State. The Commission may grant a stay if it | ||||||
4 | determines the regulatory opt out is being pursued in a | ||||||
5 | reasonable manner and there is a likelihood of success. If a | ||||||
6 | stay is granted or extended by the Commission, the stay or | ||||||
7 | extension thereof may postpone the effective date by up to | ||||||
8 | ninety (90) days, unless affirmatively extended by the | ||||||
9 | Commission; provided, a stay may not be permitted to remain in | ||||||
10 | effect for more than one (1) year unless the Compacting State | ||||||
11 | can show extraordinary circumstances which warrant a | ||||||
12 | continuance of the stay, including, but not limited to, the | ||||||
13 | existence of a legal challenge which prevents the Compacting | ||||||
14 | State from opting out. A stay may be terminated by the | ||||||
15 | Commission upon notice that the rulemaking process has been | ||||||
16 | terminated. | ||||||
17 | 7. Not later than thirty (30) days after a Rule or | ||||||
18 | Operating Procedure is promulgated, any person may file a | ||||||
19 | petition for judicial review of the Rule or Operating | ||||||
20 | Procedure; provided, that the filing of such a petition shall | ||||||
21 | not stay or otherwise prevent the Rule or Operating Procedure | ||||||
22 | from becoming effective unless the court finds that the | ||||||
23 | petitioner has a substantial likelihood of success. The court | ||||||
24 | shall give deference to the actions of the Commission | ||||||
25 | consistent with applicable law and shall not find the Rule or | ||||||
26 | Operating Procedure to be unlawful if the Rule or Operating | ||||||
27 | Procedure represents a reasonable exercise of the Commission's | ||||||
28 | authority. | ||||||
29 | Article VIII. COMMISSION RECORDS AND ENFORCEMENT | ||||||
30 | 1. The Commission shall promulgate Rules establishing | ||||||
31 | conditions and procedures for public inspection and copying of | ||||||
32 | its information and official records, except such information | ||||||
33 | and records involving the privacy of individuals and insurers' | ||||||
34 | trade secrets. The Commission may promulgate additional Rules | ||||||
35 | under which it may make available to federal and state |
| |||||||
|
|||||||
1 | agencies, including law enforcement agencies, records and | ||||||
2 | information otherwise exempt from disclosure, and may enter | ||||||
3 | into agreements with such agencies to receive or exchange | ||||||
4 | information or records subject to nondisclosure and | ||||||
5 | confidentiality provisions. | ||||||
6 | 2. Except as to privileged records, data and information, | ||||||
7 | the laws of any Compacting State pertaining to confidentiality | ||||||
8 | or nondisclosure shall not relieve any Compacting State | ||||||
9 | Commissioner of the duty to disclose any relevant records, data | ||||||
10 | or information to the Commission; provided, that disclosure to | ||||||
11 | the Commission shall not be deemed to waive or otherwise affect | ||||||
12 | any confidentiality requirement; and further provided, that, | ||||||
13 | except as otherwise expressly provided in this Act, the | ||||||
14 | Commission shall not be subject to the Compacting State's laws | ||||||
15 | pertaining to confidentiality and nondisclosure with respect | ||||||
16 | to records, data and information in its possession. | ||||||
17 | Confidential information of the Commission shall remain | ||||||
18 | confidential after such information is provided to any | ||||||
19 | Commissioner. | ||||||
20 | 3. The Commission shall monitor Compacting States for | ||||||
21 | compliance with duly adopted Bylaws, Rules, including Uniform | ||||||
22 | Standards, and Operating Procedures. The Commission shall | ||||||
23 | notify any non-complying Compacting State in writing of its | ||||||
24 | noncompliance with Commission Bylaws, Rules or Operating | ||||||
25 | Procedures. If a non-complying Compacting State fails to remedy | ||||||
26 | its noncompliance within the time specified in the notice of | ||||||
27 | noncompliance, the Compacting State shall be deemed to be in | ||||||
28 | default as set forth in Article XIV. | ||||||
29 | 4. The Commissioner of any State in which an Insurer is | ||||||
30 | authorized to do business, or is conducting the business of | ||||||
31 | insurance, shall continue to exercise his or her authority to | ||||||
32 | oversee the market regulation of the activities of the Insurer | ||||||
33 | in accordance with the provisions of the State's law. The | ||||||
34 | Commissioner's enforcement of compliance with the Compact is | ||||||
35 | governed by the following provisions: | ||||||
36 | a. With respect to the Commissioner's market |
| |||||||
|
|||||||
1 | regulation of a Product or Advertisement that is approved | ||||||
2 | or certified to the Commission, the content of the Product | ||||||
3 | or Advertisement shall not constitute a violation of the | ||||||
4 | provisions, standards or requirements of the Compact | ||||||
5 | except upon a final order of the Commission, issued at the | ||||||
6 | request of a Commissioner after prior notice to the Insurer | ||||||
7 | and an opportunity for hearing before the Commission. | ||||||
8 | b. Before a Commissioner may bring an action for | ||||||
9 | violation of any provision, standard or requirement of the | ||||||
10 | Compact relating to the content of an Advertisement not | ||||||
11 | approved or certified to the Commission, the Commission, or | ||||||
12 | an authorized Commission officer or employee, must | ||||||
13 | authorize the action. However, authorization pursuant to | ||||||
14 | this Paragraph does not require notice to the Insurer, | ||||||
15 | opportunity for hearing or disclosure of requests for | ||||||
16 | authorization or records of the Commission's action on such | ||||||
17 | requests. | ||||||
18 | Article IX. DISPUTE RESOLUTION | ||||||
19 | The Commission shall attempt, upon the request of a Member, | ||||||
20 | to resolve any disputes or other issues that are subject to | ||||||
21 | this Compact and which may arise between two or more Compacting | ||||||
22 | States, or between Compacting States and Non-compacting | ||||||
23 | States, and the Commission shall promulgate an Operating | ||||||
24 | Procedure providing for resolution of such disputes. | ||||||
25 | Article X. PRODUCT FILING AND APPROVAL | ||||||
26 | 1. Insurers and Third-Party Filers seeking to have a | ||||||
27 | Product approved by the Commission shall file the Product with, | ||||||
28 | and pay applicable filing fees to, the Commission. Nothing in | ||||||
29 | this Act shall be construed to restrict or otherwise prevent an | ||||||
30 | insurer from filing its Product with the insurance department | ||||||
31 | in any State wherein the insurer is licensed to conduct the | ||||||
32 | business of insurance, and such filing shall be subject to the | ||||||
33 | laws of the States where filed. | ||||||
34 | 2. The Commission shall establish appropriate filing and |
| |||||||
|
|||||||
1 | review processes and procedures pursuant to Commission Rules | ||||||
2 | and Operating Procedures. Notwithstanding any provision herein | ||||||
3 | to the contrary, the Commission shall promulgate Rules to | ||||||
4 | establish conditions and procedures under which the Commission | ||||||
5 | will provide public access to Product filing information. In | ||||||
6 | establishing such Rules, the Commission shall consider the | ||||||
7 | interests of the public in having access to such information, | ||||||
8 | as well as protection of personal medical and financial | ||||||
9 | information and trade secrets, that may be contained in a | ||||||
10 | Product filing or supporting information. | ||||||
11 | 3. Any Product approved by the Commission may be sold or | ||||||
12 | otherwise issued in those Compacting States for which the | ||||||
13 | Insurer is legally authorized to do business. | ||||||
14 | Article XI. REVIEW OF COMMISSION DECISIONS REGARDING FILINGS | ||||||
15 | 1. Not later than thirty (30) days after the Commission has | ||||||
16 | given notice of a disapproved Product or Advertisement filed | ||||||
17 | with the Commission, the Insurer or Third Party Filer whose | ||||||
18 | filing was disapproved may appeal the determination to a review | ||||||
19 | panel appointed by the Commission. The Commission shall | ||||||
20 | promulgate Rules to establish procedures for appointing such | ||||||
21 | review panels and provide for notice and hearing. An allegation | ||||||
22 | that the Commission, in disapproving a Product or Advertisement | ||||||
23 | filed with the Commission, acted arbitrarily, capriciously, or | ||||||
24 | in a manner that is an abuse of discretion or otherwise not in | ||||||
25 | accordance with the law, is subject to judicial review in | ||||||
26 | accordance with Article III, section 5. | ||||||
27 | 2. The Commission shall have authority to monitor, review | ||||||
28 | and reconsider Products and Advertisement subsequent to their | ||||||
29 | filing or approval upon a finding that the product does not | ||||||
30 | meet the relevant Uniform Standard. Where appropriate, the | ||||||
31 | Commission may withdraw or modify its approval after proper | ||||||
32 | notice and hearing, subject to the appeal process in section 1 | ||||||
33 | above. | ||||||
34 | Article XII. FINANCE |
| |||||||
|
|||||||
1 | 1. The Commission shall pay or provide for the payment of | ||||||
2 | the reasonable expenses of its establishment and organization. | ||||||
3 | To fund the cost of its initial operations, the Commission may | ||||||
4 | accept contributions and other forms of funding from the | ||||||
5 | National Association of Insurance Commissioners, Compacting | ||||||
6 | States and other sources. Contributions and other forms of | ||||||
7 | funding from other sources shall be of such a nature that the | ||||||
8 | independence of the Commission concerning the performance of | ||||||
9 | its duties shall not be compromised. | ||||||
10 | 2. The Commission shall collect a filing fee from each | ||||||
11 | Insurer and Third Party Filer filing a product with the | ||||||
12 | Commission to cover the cost of the operations and activities | ||||||
13 | of the Commission and its staff in a total amount sufficient to | ||||||
14 | cover the Commission's annual budget. | ||||||
15 | 3. The Commission's budget for a fiscal year shall not be | ||||||
16 | approved until it has been subject to notice and comment as set | ||||||
17 | forth in Article VII of this Compact. | ||||||
18 | 4. The Commission shall be exempt from all taxation in and | ||||||
19 | by the Compacting States. | ||||||
20 | 5. The Commission shall not pledge the credit of any | ||||||
21 | Compacting State, except by and with the appropriate legal | ||||||
22 | authority of that Compacting State. | ||||||
23 | 6. The Commission shall keep complete and accurate accounts | ||||||
24 | of all its internal receipts, including grants and donations, | ||||||
25 | and disbursements of all funds under its control. The internal | ||||||
26 | financial accounts of the Commission shall be subject to the | ||||||
27 | accounting procedures established under its Bylaws. The | ||||||
28 | financial accounts and reports including the system of internal | ||||||
29 | controls and procedures of the Commission shall be audited | ||||||
30 | annually by an independent certified public accountant. Upon | ||||||
31 | the determination of the Commission, but no less frequently | ||||||
32 | than every three (3) years, the review of the independent | ||||||
33 | auditor shall include a management and performance audit of the | ||||||
34 | Commission. The Commission shall make an Annual Report to the | ||||||
35 | Governor and legislature of the Compacting States, which shall | ||||||
36 | include a report of the independent audit. The Commission's |
| |||||||
|
|||||||
1 | internal accounts shall not be confidential and such materials | ||||||
2 | may be shared with the Commissioner of any Compacting State | ||||||
3 | upon request, provided, however, that any work papers related | ||||||
4 | to any internal or independent audit and any information | ||||||
5 | regarding the privacy of individuals and insurers' proprietary | ||||||
6 | information, including trade secrets, shall remain | ||||||
7 | confidential. | ||||||
8 | 7. No Compacting State shall have any claim to or ownership | ||||||
9 | of any property held by or vested in the Commission or to any | ||||||
10 | Commission funds held pursuant to the provisions of this | ||||||
11 | Compact. | ||||||
12 | Article XIII. COMPACTING STATES, EFFECTIVE DATE AND AMENDMENT | ||||||
13 | 1. Any State is eligible to become a Compacting State. | ||||||
14 | 2. The Compact shall become effective and binding upon | ||||||
15 | legislative enactment of the Compact into law by two Compacting | ||||||
16 | States; provided, the Commission shall become effective for | ||||||
17 | purposes of adopting Uniform Standards for, reviewing, and | ||||||
18 | giving approval or disapproval of, Products filed with the | ||||||
19 | Commission that satisfy applicable Uniform Standards only | ||||||
20 | after twenty-six (26) States are Compacting States or, | ||||||
21 | alternatively, by States representing greater than forty | ||||||
22 | percent (40%) of the premium volume for life insurance, | ||||||
23 | annuity, disability income and long-term care insurance | ||||||
24 | products, based on records of the NAIC for the prior year. | ||||||
25 | Thereafter, it shall become effective and binding as to any | ||||||
26 | other Compacting State upon enactment of the Compact into law | ||||||
27 | by that State.
| ||||||
28 | 3. Amendments to the Compact may be proposed by the | ||||||
29 | Commission for enactment by the Compacting States. No amendment | ||||||
30 | shall become effective and binding upon the Commission and the | ||||||
31 | Compacting States unless and until all Compacting States enact | ||||||
32 | the amendment into law. | ||||||
33 | Article XIV. WITHDRAWAL, DEFAULT AND TERMINATION | ||||||
34 | 1. Withdrawal. |
| |||||||
|
|||||||
1 | a. Once effective, the Compact shall continue in force and | ||||||
2 | remain binding upon each and every Compacting State; provided, | ||||||
3 | that a Compacting State may withdraw from the Compact | ||||||
4 | ("Withdrawing State") by enacting a statute specifically | ||||||
5 | repealing the statute which enacted the Compact into law. | ||||||
6 | b. The effective date of withdrawal is the effective date | ||||||
7 | of the repealing statute. However, the withdrawal shall not | ||||||
8 | apply to any product filings approved or self-certified, or any | ||||||
9 | Advertisement of such products, on the date the repealing | ||||||
10 | statute becomes effective, except by mutual agreement of the | ||||||
11 | Commission and the Withdrawing State unless the approval is | ||||||
12 | rescinded by the Withdrawing State as provided in subsection e. | ||||||
13 | of this section. | ||||||
14 | c. The Commissioner of the Withdrawing State shall | ||||||
15 | immediately notify the Management Committee in writing upon the | ||||||
16 | introduction of legislation repealing this Compact in the | ||||||
17 | Withdrawing State. | ||||||
18 | d. The Commission shall notify the other Compacting States | ||||||
19 | of the introduction of such legislation within ten (10) days | ||||||
20 | after its receipt of notice thereof. | ||||||
21 | e. The Withdrawing State is responsible for all | ||||||
22 | obligations, duties and liabilities incurred through the | ||||||
23 | effective date of withdrawal, including any obligations, the | ||||||
24 | performance of which extend beyond the effective date of | ||||||
25 | withdrawal, except to the extent those obligations may have | ||||||
26 | been released or relinquished by mutual agreement of the | ||||||
27 | Commission and the Withdrawing State. The Commission's | ||||||
28 | approval of Products and Advertisement prior to the effective | ||||||
29 | date of withdrawal shall continue to be effective and be given | ||||||
30 | full force and effect in the Withdrawing State, unless formally | ||||||
31 | rescinded by the Withdrawing State in the same manner as | ||||||
32 | provided by the laws of the Withdrawing State for the | ||||||
33 | prospective disapproval of products or advertisement | ||||||
34 | previously approved under state law. | ||||||
35 | f. Reinstatement following withdrawal of any Compacting | ||||||
36 | State shall occur upon the effective date of the Withdrawing |
| |||||||
|
|||||||
1 | State reenacting the Compact. | ||||||
2 | 2. Default. | ||||||
3 | a. If the Commission determines that any Compacting State | ||||||
4 | has at any time defaulted ("Defaulting State") in the | ||||||
5 | performance of any of its obligations or responsibilities under | ||||||
6 | this Compact, the Bylaws or duly promulgated Rules or Operating | ||||||
7 | Procedures, then, after notice and hearing as set forth in the | ||||||
8 | Bylaws, all rights, privileges and benefits conferred by this | ||||||
9 | Compact on the Defaulting State shall be suspended from the | ||||||
10 | effective date of default as fixed by the Commission. The | ||||||
11 | grounds for default include, but are not limited to, failure of | ||||||
12 | a Compacting State to perform its obligations or | ||||||
13 | responsibilities, and any other grounds designated in | ||||||
14 | Commission Rules. The Commission shall immediately notify the | ||||||
15 | Defaulting State in writing of the Defaulting State's | ||||||
16 | suspension pending a cure of the default. The Commission shall | ||||||
17 | stipulate the conditions and the time period within which the | ||||||
18 | Defaulting State must cure its default. If the Defaulting State | ||||||
19 | fails to cure the default within the time period specified by | ||||||
20 | the Commission, the Defaulting State shall be terminated from | ||||||
21 | the Compact and all rights, privileges and benefits conferred | ||||||
22 | by this Compact shall be terminated from the effective date of | ||||||
23 | termination. | ||||||
24 | b. Product approvals by the Commission or product | ||||||
25 | self-certifications, or any Advertisement in connection with | ||||||
26 | such product, that are in force on the effective date of | ||||||
27 | termination shall remain in force in the Defaulting State in | ||||||
28 | the same manner as if the Defaulting State had withdrawn | ||||||
29 | voluntarily pursuant to paragraph 1 of this Article. | ||||||
30 | c. Reinstatement following termination of any Compacting | ||||||
31 | State requires a reenactment of the Compact. | ||||||
32 | 3. Dissolution of Compact. | ||||||
33 | a. The Compact dissolves effective upon the date of the | ||||||
34 | withdrawal or default of the Compacting State which reduces | ||||||
35 | membership in the Compact to one Compacting State. | ||||||
36 | b. Upon the dissolution of this Compact, the Compact |
| |||||||
|
|||||||
1 | becomes null and void and shall be of no further force or | ||||||
2 | effect, and the business and affairs of the Commission shall be | ||||||
3 | wound up and any surplus funds shall be distributed in | ||||||
4 | accordance with the Bylaws. | ||||||
5 | Article XV. SEVERABILITY AND CONSTRUCTION | ||||||
6 | 1. The provisions of this Compact shall be severable; and | ||||||
7 | if any phrase, clause, sentence or provision is deemed | ||||||
8 | unenforceable, the remaining provisions of the Compact shall be | ||||||
9 | enforceable. | ||||||
10 | 2. The provisions of this Compact shall be liberally | ||||||
11 | construed to effectuate its purposes. | ||||||
12 | Article XVI. BINDING EFFECT OF COMPACT AND OTHER LAWS | ||||||
13 | 1. Other Laws. | ||||||
14 | a. Nothing herein prevents the enforcement of any other law | ||||||
15 | of a Compacting State, except as provided in paragraph b of | ||||||
16 | this Article. | ||||||
17 | b. For any Product approved or certified to the Commission, | ||||||
18 | the Rules, Uniform Standards and any other requirements of the | ||||||
19 | Commission shall constitute the exclusive provisions | ||||||
20 | applicable to the content, approval and certification of such | ||||||
21 | Products. For Advertisement that is subject to the Commission's | ||||||
22 | authority, any Rule, Uniform Standard or other requirement of | ||||||
23 | the Commission which governs the content of the Advertisement | ||||||
24 | shall constitute the exclusive provision that a Commissioner | ||||||
25 | may apply to the content of the Advertisement. Notwithstanding | ||||||
26 | the foregoing, no action taken by the Commission shall abrogate | ||||||
27 | or restrict: | ||||||
28 | (i) the access of any person to state courts; | ||||||
29 | (ii) remedies available under state law related to | ||||||
30 | breach of contract, tort, or other laws not specifically | ||||||
31 | directed to the content of the Product; | ||||||
32 | (iii) state law relating to the construction of | ||||||
33 | insurance contracts; or | ||||||
34 | (iv) the authority of the attorney general of the |
| |||||||
|
|||||||
1 | state, including but not limited to maintaining any actions | ||||||
2 | or proceedings, as authorized by law. | ||||||
3 | c. All insurance products filed with individual States | ||||||
4 | shall be subject to the laws of those States. | ||||||
5 | 2. Binding Effect of this Compact. | ||||||
6 | a. All lawful actions of the Commission, including all | ||||||
7 | Rules and Operating Procedures promulgated by the Commission, | ||||||
8 | are binding upon the Compacting States. | ||||||
9 | b. All agreements between the Commission and the Compacting | ||||||
10 | States are binding in accordance with their terms. | ||||||
11 | c. Upon the request of a party to a conflict over the | ||||||
12 | meaning or interpretation of Commission actions, and upon a | ||||||
13 | majority vote of the Compacting States, the Commission may | ||||||
14 | issue advisory opinions regarding the meaning or | ||||||
15 | interpretation in dispute. | ||||||
16 | d. In the event any provision of this Compact exceeds the | ||||||
17 | constitutional limits imposed on the legislature of any | ||||||
18 | Compacting State, the obligations, duties, powers or | ||||||
19 | jurisdiction sought to be conferred by that provision upon the | ||||||
20 | Commission shall be ineffective as to that Compacting State, | ||||||
21 | and those obligations, duties, powers or jurisdiction shall | ||||||
22 | remain in the Compacting State and shall be exercised by the | ||||||
23 | agency thereof to which those obligations, duties, powers or | ||||||
24 | jurisdiction are delegated by law in effect at the time this | ||||||
25 | Compact becomes effective.
| ||||||
26 | Section 99. Effective date. This Act takes effect upon | ||||||
27 | becoming law.
|