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A04822 Summary:

BILL NOA04822
 
SAME ASNo Same As
 
SPONSORTitus
 
COSPNSRSteck, Weprin, Quart, Hevesi, Cook, Kolb
 
MLTSPNSR
 
Add Art 88 8801 - 8817, Ins L
 
Establishes the "interstate insurance product regulation compact" to regulate certain insurance products among member states and to promote and protect the interest of consumers of individual and group annuity, life insurance, disability income and long term care insurance products.
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A04822 Actions:

BILL NOA04822
 
02/03/2017referred to insurance
01/03/2018referred to insurance
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A04822 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4822
 
SPONSOR: Titus
  TITLE OF BILL: An act to amend the insurance law, in relation to establishing the interstate insurance product regulation compact to regulate certain insurance products; and providing for the repeal of such provisions upon expiration thereof   PURPOSE OR GENERAL IDEA OF BILL: Establishes an interstate insurance product regulation compact. The purposes of this compact are, through means of joint and cooperative action among the compacting states: a. to promote and protect the interest of consumers of individual and group annuity, life insurance, disability income and long-term care insurance products; b. to develop uniform standards for insurance products covered under the compact; c. to establish a central clearinghouse to receive and provide prompt review of insurance products covered under the compact and, in certain cases, advertisements related thereto, submitted by insurers authorized to do business in one or more compacting states; d. to give appropriate regulatory approval to those product filings and advertisements satisfying the applicable uniform standards; e. to improve coordination of regulatory resources and expertise among state insurance departments regarding the setting of uniform standards and review of insurance products covered under the compact; f. to create the interstate insurance product regulation commission; and g. to perform such other related functions as may be consistent with the state regulation of the business of insurance.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill provides legislative findings. Section 2 adds a new Article 88 to the Insurance Law entitled the "Interstate Insurance Product Regulation Compact" (hereinafter referred to. as the 'Compact"). This Article consists of seventeen new bill sections: Sections 8801-8817. The bill creates an Interstate Insurance Product Approval Commission (hereinafter referred to as the "Commission") and provides the statutory framework for states to enter into an interstate insurance product regu- lation compact. The Compact would establish a single point of filing for certain insur- ance products and rate filings which would be subject to uniform national standards. Those states that are members of the Compact would develop the uniform standards that apply to products filed with the Commission. Product standards would be developed through a rulemaking process which would require the approval of two-thirds of the commission management committee and two-thirds of the commission members. Unless a state opts-out as described below, approval of a product by the Compact would be the same as approval by a member state. The bill would, howev- er, allow companies the option to continue to file products' in the individual states through the existing form filing processes. Identifi- cation of genetically modified organisms in consumable commodities and promulgate rules and regulations. The bill also provides that individual states will continue to regulate market activities and allows for coordination among states and the Commission to determine instances of violations of uniform standards subject to the final order of the Commission. If a state disagrees with a product standard developed by the Commis- sion, it may opt-out of the uniform standard either by regulation or legislation. For long-term care insurance, states may opt-out at the time of the joining the Compact ("front-end" opt-out). In order to opt-out by regulation (a state must show that the uniform standard does not provide reasonable protections to the citizens of the state and that the needs of the state outweigh the Legislature's intent to participate in and receive the benefits of the Compact. The Compact would become effective when two states enact compact legis- lation. The Commission becomes operational (that is adopting uniform standards, receiving products and giving approvals/disapprovals) if twenty-six states or states representing forty percent of the premium for life (disability income insurance and long-term care join the Compact. Operations of the Commission would be financed initially through contributions and other Sources of funding and over time through the filing fees paid by insurers. All donations, grants of money, equipment, supplies, materials or services, purchases, gifts, donations, conveyances, mortgages, pledges, leases and exchanges, received by or on behalf of the Commission will be limited to the direct funding of the lawful and authorized operations of the Commission. In addition, the Commission is solely responsible for its liabilities unless otherwise specifically provided in the Compact. However, in no event shall the obligations of the Commission be the debt of the State of New York nor shall any revenues or property of the State of New York be liable therefore. All states joining the Compact would be involved in setting up and over- seeing the activities of the Compact, including developing product stan- dards and the rules and operating procedures of the Commission. The Commission would make an annual report to the legislature and gover- nor of each state joining the Compact. In addition to opting out of particular product standards, each state has the right to withdraw from the Compact, by enacting a statute repealing this bill. Section 3 of the bill provides for a January 1, 2014 effective date, with an expiration date of December 31, 2016.   JUSTIFICATION: In general, interstate compacts are used to establish the framework for cooperative solutions to multi-state challenges. There are over two hundred interstate compacts currently in existence covering a wide vari- ety of subjects. Every state belongs to at least fourteen such compacts. This bill is based on the NAIC Model Act. The bill provides for a single point of product and rate filings subject to uniform national standards, which provides the following benefits: a. Regulatory efficiency/effectiveness: more effective use of limited regulatory resources. b. Single high-quality review of increasingly complex products. c. Leverage collective expertise of states in setting uniform standards. d. opportunity to redirect resources to other areas of consumer protection. e. Meet industry's need for single point of filing. f. Meet industry's need to get products to market in a timelier manner. g. Permit industry to compete more effectively With financial insti- tutions such as banks and security firms. h. Provide consumers with a broader choice of products in a timelier manner. States would still retain control over the insurance regulatory process even if a state elects to join the compact. If a state disagrees with a product standard developed by the Commission, it may opt-out of the uniform standard either by regulation or legislation. The bill would also allow companies to continue to file products in the individual states through the existing form filing process.   PRIOR LEGISLATIVE HISTORY: A1262 (2015-2016) Referred to Insurance 1/06/16 06/09/14 PASSED SENATE; referred to insurance 05/02/14 amend and recommit to insurance 01/08/14 referred to insurance 01/09/13 referred to insurance   FISCAL IMPLICATIONS: Establishment of a Commission would be of minimal cost to New York State. The Commission would be funded by the insurance companies who are utilizing the services of the Commission.   EFFECTIVE DATE: The act shall take effect January 1, 2016 and shall expire and be deemed repealed December 31, 2018; provided, however, that any policy or contract issued during the period that the law is in effect that has been approved in accordance with this law shall continue in full force and effect.
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A04822 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4822
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 3, 2017
                                       ___________
 
        Introduced by M. of A. TITUS, STECK, WEPRIN, QUART, HEVESI, COOK -- read
          once and referred to the Committee on Insurance
 
        AN  ACT  to  amend  the  insurance  law, in relation to establishing the
          interstate insurance product regulation compact  to  regulate  certain
          insurance  products;  and  providing for the repeal of such provisions
          upon expiration thereof
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Legislative findings and intent. An interstate compact is
     2  an agreement between states that permits states to cooperate  on  multi-
     3  state  or  national issues while retaining state control. There are over
     4  two hundred interstate compacts currently in existence and  every  state
     5  belongs  to  at  least  fourteen such compacts. The interstate insurance
     6  product regulation compact is designed to streamline state product regu-
     7  lation systems to allow insurers to more quickly market certain types of
     8  insurance products nationally and to reduce the number of variations  of
     9  the  same  product  that a company must produce to meet specific product
    10  standards. The compact would cover individual  and  group  products  for
    11  life  insurance,  annuities, disability income and long-term care insur-
    12  ance. The state of New York seeks to join with other states  and  estab-
    13  lish  the  interstate  insurance product regulation compact and become a
    14  member of the interstate insurance product regulation commission.
    15    § 2. The insurance law is amended by adding a new article 88  to  read
    16  as follows:
 
    17                                 ARTICLE 88
    18               INTERSTATE INSURANCE PRODUCT REGULATION COMPACT
 
    19  Section 8801. Short title.
    20          8802. Purpose.
    21          8803. Definitions.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02625-01-7

        A. 4822                             2
 
     1          8804. Establishment of the commission and venue.
     2          8805. Powers of the commission.
     3          8806. Organization of the commission.
     4          8807. Meetings and acts of the commission.
     5          8808. Rules  and  operating procedures; rule making functions of
     6                  the commission and opting out of uniform standards.
     7          8809. Commission records and enforcement.
     8          8810. Dispute resolution.
     9          8811. Product filing and approval.
    10          8812. Review of commission decisions regarding filings.
    11          8813. Finance.
    12          8814. Compacting states, effective date and amendment.
    13          8815. Withdrawal, default and termination.
    14          8816. Severability and construction.
    15          8817. Binding effect of compact and other laws.
    16    § 8801. Short title. This article shall be known and may be  cited  as
    17  the "interstate insurance product regulation compact".
    18    §  8802.  Purpose.  The purposes of this compact are, through means of
    19  joint and cooperative action among the compacting states:
    20    (a) to promote and protect the interest of consumers of individual and
    21  group annuity, life insurance,  disability  income  and  long-term  care
    22  insurance products;
    23    (b)  to develop uniform standards for insurance products covered under
    24  the compact;
    25    (c) to establish a central clearinghouse to receive and provide prompt
    26  review of insurance products covered under the compact and,  in  certain
    27  cases,  advertisements related thereto, submitted by insurers authorized
    28  to do business in one or more compacting states;
    29    (d) to give appropriate regulatory approval to those  product  filings
    30  and advertisements satisfying the applicable uniform standard;
    31    (e)  to  improve  coordination  of  regulatory resources and expertise
    32  between state insurance departments regarding  the  setting  of  uniform
    33  standards and review of insurance products covered under the compact;
    34    (f)  to create the interstate insurance product regulation commission;
    35  and
    36    (g) to perform such other related functions as may be consistent  with
    37  the state regulation of the business of insurance.
    38    § 8803. Definitions. As used in this article:
    39    (a)  "Advertisement"  means  any  material  designed  to create public
    40  interest in a product, or induce the public to purchase, increase, modi-
    41  fy, reinstate, borrow on, surrender, replace or retain a policy, as more
    42  specifically defined in  the  rules  and  operating  procedures  of  the
    43  commission.
    44    (b) "By-laws" mean those by-laws established by the commission for its
    45  governance  or  for directing or controlling the commission's actions or
    46  conduct.
    47    (c) "Compacting state" means any state which has enacted this  compact
    48  legislation  and  which has not withdrawn or been terminated pursuant to
    49  section eight thousand eight hundred fifteen of this article.
    50    (d) "Commission" means the "Interstate  insurance  product  regulation
    51  commission" established by the compact.
    52    (e)  "Commissioner" means the chief insurance regulatory official of a
    53  state including, but not limited to commissioner, superintendent, direc-
    54  tor or administrator.

        A. 4822                             3
 
     1    (f) "Domiciliary state" means the state in which an insurer is  incor-
     2  porated  or  organized or, in the case of an alien insurer, its state of
     3  entry.
     4    (g)  "Insurer" means any entity licensed by a state to issue contracts
     5  of insurance for any of the lines of insurance covered by this article.
     6    (h) "Member" means the person, or his or her  designee,  chosen  by  a
     7  compacting state for service on the commission.
     8    (i)  "Non-compacting state" means any state which is not at the time a
     9  compacting state.
    10    (j) "Operating procedures" mean procedures promulgated by the  commis-
    11  sion  implementing  a  rule,  uniform  standard  or  a provision of this
    12  compact.
    13    (k) "Product" means the form  of  the  contract,  policy  application,
    14  endorsements,  certificate forms, evidence of coverage forms and related
    15  forms for an individual or group  annuity,  life  insurance,  disability
    16  income  or long-term care insurance product, which an insurer is author-
    17  ized to issue.
    18    (l) "Rule" means a statement of general  or  particular  applicability
    19  and  future  effect  promulgated  by the commission, including a uniform
    20  standard developed pursuant to  section  eight  thousand  eight  hundred
    21  eight  of  this  article, designed to implement, interpret, or prescribe
    22  law or policy or describing the  organization,  procedure,  or  practice
    23  requirements of the commission, which shall have the force and effect of
    24  law in the compacting states.
    25    (m)  "State"  means  any  state,  district  or territory of the United
    26  States of America.
    27    (n) "Third-party filer" means an entity that submits a product  filing
    28  to the commission on behalf of an insurer.
    29    (o)  "Uniform standard" means a standard adopted by the commission for
    30  a product line, pursuant to section eight thousand eight  hundred  eight
    31  of  this  article  and  shall include all of the product requirements in
    32  aggregate; provided, that each  uniform  standard  shall  be  construed,
    33  whether  express  or  implied,  to prohibit the use of any inconsistent,
    34  misleading or ambiguous provisions in a product and  the  form  of  such
    35  product made available to the public shall not be unfair, inequitable or
    36  against public policy as determined by the commission.
    37    §  8804. Establishment of the commission and venue. (a) The compacting
    38  states hereby create and establish a joint public agency  known  as  the
    39  "Interstate   insurance  product  regulation  commission".  Pursuant  to
    40  section eight thousand eight hundred eight of this article, the  commis-
    41  sion  shall  have  the  power  to  develop uniform standards for product
    42  lines, receive and provide prompt review of  products  filed  therewith,
    43  and give approval to those product filings satisfying applicable uniform
    44  standards; provided, however, that it is not intended for the commission
    45  to  be  the exclusive entity for receipt and review of insurance product
    46  filings. Nothing in this section shall prohibit any insurer from  filing
    47  its product in any state wherein such insurer is licensed to conduct the
    48  business  of  insurance  and such filing shall be subject to the laws of
    49  the state where filed.
    50    (b) The commission is a body corporate and politic, and an  instrumen-
    51  tality of the compacting states.
    52    (c)  The  commission is a not-for-profit entity, separate and distinct
    53  from the individual compacting states.
    54    (d) The commission is solely responsible for  its  liabilities  unless
    55  otherwise  specifically  provided  in  this  compact, except that, in no
    56  event shall the obligations of the commission be the debt of  the  state

        A. 4822                             4
 
     1  of  New York nor shall any revenues or property of the state of New York
     2  be liable therefor.
     3    (e) Venue in proper and judicial proceedings by or against the commis-
     4  sion  shall  be  brought  solely and exclusively in a court of competent
     5  jurisdiction where the principal office of the commission is located.
     6    § 8805. Powers of the commission. (a) The commission  shall  have  the
     7  following powers:
     8    (1)  to  promulgate  rules,  pursuant  to section eight thousand eight
     9  hundred eight of this article, which shall have the force and effect  of
    10  law  and  shall be binding in the compacting states to the extent and in
    11  the manner provided in this article;
    12    (2) to exercise its rule making  authority  and  establish  reasonable
    13  uniform standards for products covered under the compact, and advertise-
    14  ment  related  thereto, which shall have the force and effect of law and
    15  shall be binding in the compacting states, but only  for  such  products
    16  filed  with  the  commission; provided, however, that a compacting state
    17  shall have the right to opt out of such  uniform  standard  pursuant  to
    18  section eight thousand eight hundred eight of this article to the extent
    19  and  in  the  manner provided in this article, and provided further that
    20  any uniform standard established by the commissioner for long-term  care
    21  insurance  products  may  provide  the  same  or greater protections for
    22  consumers as, but shall not provide less  than,  those  protections  set
    23  forth  in  the National Association of Insurance Commissioners' (herein-
    24  after referred to as the "NAIC") Long-Term Care Insurance Model Act  and
    25  Long-Term  Care  Insurance Model Regulation, respectively, adopted as of
    26  2001. The commission shall consider whether any subsequent amendments to
    27  the NAIC Long-Term Care Insurance Model Act or Long-Term Care  Insurance
    28  Model  Regulation  adopted  by  the NAIC require amending of the uniform
    29  standards  established  by  the  commission  for   long-term   insurance
    30  products;
    31    (3) to receive and review in an expeditious manner products filed with
    32  the  commission,  including rate filings for disability income and long-
    33  term care insurance products, and give approval of  those  products  and
    34  rate  filings  that  satisfy the applicable uniform standard, where such
    35  approval shall have the force and effect of law and be  binding  on  the
    36  compacting  states  to  the  extent  and  in  the manner provided in the
    37  compact;
    38    (4) to receive and  review  in  an  expeditious  manner  advertisement
    39  relating  to  long-term care insurance products for which uniform stand-
    40  ards have been adopted by the commission,  and  give  approval  of  such
    41  advertisement  that  satisfies  the applicable uniform standard. For any
    42  product covered under this article, other than long-term care  insurance
    43  products,  the commission shall have the authority to require an insurer
    44  to submit all or any part of its  advertisement  with  respect  to  that
    45  product for review or approval prior to use if the commission determines
    46  that  the  nature  of  the  product is such that an advertisement of the
    47  product could have the capacity or tendency to mislead the  public.  The
    48  actions  of  the  commission  as provided in this section shall have the
    49  force and effect of law and shall be binding in the compacting states to
    50  the extent and in the manner provided in the compact;
    51    (5) to exercise its rule making authority and designate  products  and
    52  advertisement  that may be subject to a self-certification process with-
    53  out the need for prior approval by the commission;
    54    (6) to promulgate operating  procedures,  pursuant  to  section  eight
    55  thousand  eight hundred eight of this article, which shall be binding in

        A. 4822                             5
 
     1  the compacting states to the extent and in the manner  provided  in  the
     2  compact;
     3    (7) to bring and prosecute legal proceedings or actions in its name as
     4  the  commission;  provided,  that  the  standing  of any state insurance
     5  department to sue or be sued under applicable law shall not be affected;
     6    (8) to issue subpoenas  requiring  the  attendance  and  testimony  of
     7  witnesses and the production of evidence;
     8    (9) to establish and maintain offices;
     9    (10) to purchase and maintain insurance and bonds;
    10    (11)  to borrow, accept or contract for services of personnel, includ-
    11  ing, but not limited to, employees of a compacting state;
    12    (12) to hire employees, professionals or  specialists,  and  elect  or
    13  appoint officers, and to fix their compensation, define their duties and
    14  give  them  appropriate  authority  to  carry  out  the  purposes of the
    15  compact, and  determine  their  qualifications;  and  to  establish  the
    16  commission's  personnel  policies  and programs relating to, among other
    17  things, conflicts of interest, rates of compensation and  qualifications
    18  of personnel;
    19    (13)  to accept any and all appropriate donations and grants of money,
    20  equipment, supplies, materials and services, and to receive, utilize and
    21  dispose of the same; provided that at all  times  the  commission  shall
    22  strive to avoid any appearance of impropriety;
    23    (14)  to lease, purchase, accept appropriate gifts or donations of, or
    24  otherwise to own, hold, improve or use, any property, real, personal  or
    25  mixed;  provided  that at all times the commission shall strive to avoid
    26  any appearance of impropriety;
    27    (15) to sell, convey, mortgage, pledge, lease,  exchange,  abandon  or
    28  otherwise dispose of any property, real, personal or mixed;
    29    (16)  to remit filing fees to compacting states as may be set forth in
    30  the by-laws, rules or operating procedures;
    31    (17) to enforce compliance by compacting states  with  rules,  uniform
    32  standards, operating procedures and by-laws;
    33    (18) to provide for dispute resolution among compacting states;
    34    (19)  to advise compacting states on issues relating to insurers domi-
    35  ciled or doing business in non-compacting jurisdictions, consistent with
    36  the purposes of the compact;
    37    (20) to provide advice and training to those personnel in state insur-
    38  ance departments responsible for product review, and to  be  a  resource
    39  for state insurance departments;
    40    (21) to establish a budget and make expenditures;
    41    (22) to borrow money;
    42    (23)  to  appoint committees, including advisory committees comprising
    43  members, state insurance regulators, state legislators or  their  repre-
    44  sentatives,  insurance  industry  and consumer representatives, and such
    45  other interested persons as may be designated in the by-laws;
    46    (24) to provide and receive information from, and  to  cooperate  with
    47  law enforcement agencies;
    48    (25) to adopt and use a corporate seal; and
    49    (26)  to perform such other functions as may be necessary or appropri-
    50  ate to achieve the purposes of this compact consistent  with  the  state
    51  regulation of the business of insurance.
    52    (b)  All donations, grants of money, equipment, supplies, materials or
    53  services, purchases, gifts, donations, conveyances, mortgages,  pledges,
    54  leases  and  exchanges, as authorized by subsection (a) of this section,
    55  received by or on behalf of the  commission  shall  be  limited  to  the

        A. 4822                             6
 
     1  direct  funding  of  the lawful and authorized operations of the commis-
     2  sion.
     3    §  8806.  Organization  of  the  commission. (a) Each compacting state
     4  shall have and be limited to one member. The superintendent, or  his  or
     5  her  designated  representative,  shall  be  New  York's  member of such
     6  commission. Each member shall be qualified to  serve  in  such  capacity
     7  pursuant  to  applicable  law of the compacting state. Any member may be
     8  removed or suspended from office as provided by the  law  of  the  state
     9  from  which  he  or she shall be appointed. Any vacancy occurring in the
    10  commission shall be filled in accordance with the laws of the compacting
    11  state wherein such vacancy exists. Nothing herein shall be construed  to
    12  affect the manner in which a compacting state determines the election or
    13  appointment and qualification of its own commissioner.
    14    (b) Each member shall be entitled to one vote and shall have an oppor-
    15  tunity  to participate in the governance of the commission in accordance
    16  with the by-laws. Notwithstanding any provision of this article  to  the
    17  contrary,  no  action of the commission with respect to the promulgation
    18  of a uniform standard  shall  be  effective  unless  two-thirds  of  the
    19  members vote in favor thereof.
    20    (c)  The  commission  shall,  by  a majority of the members, prescribe
    21  by-laws to govern its conduct as may  be  necessary  or  appropriate  to
    22  carry out the purposes, and exercise the powers, of the compact, includ-
    23  ing, but not limited to:
    24    (1) establishing the fiscal year of the commission;
    25    (2)  providing  reasonable  procedures  for  holding  meetings  of the
    26  management committee;
    27    (3) providing reasonable standards and procedures for  the  establish-
    28  ment  of  other committees, and governing any general or specific deleg-
    29  ation of any authority or function of the commission;
    30    (4) providing reasonable procedures for calling and  conducting  meet-
    31  ings of the commission that consist of a majority of commission members,
    32  ensuring  reasonable  advance notice of each such meeting, and providing
    33  for the right of citizens to attend each such  meeting  with  enumerated
    34  exceptions  designed  to  protect  the public's interest, the privacy of
    35  individuals  and  insurers'  proprietary  information,  including  trade
    36  secrets.  The commission may meet in camera only after a majority of the
    37  entire membership votes to close a meeting in toto or in part.  As  soon
    38  as  practicable,  the  commission must make public a copy of the vote to
    39  close the meeting revealing the vote of each member with no proxy  votes
    40  allowed, and votes taken during such meeting;
    41    (5)  establishing  the  titles,  duties  and  authority and reasonable
    42  procedures for the election of the officers of the commission;
    43    (6) providing reasonable standards and procedures for  the  establish-
    44  ment of the personnel policies and programs of the commission.  Notwith-
    45  standing  any  civil  service  or  other  similar laws of any compacting
    46  state, the by-laws shall exclusively govern the personnel  policies  and
    47  programs of the commission;
    48    (7) promulgating a code of ethics to address permissible and prohibit-
    49  ed activities of commission members and employees; and
    50    (8) providing a mechanism for winding up the operations of the commis-
    51  sion  and  the equitable disposition of any surplus funds that may exist
    52  after the termination of the compact after the payment and/or  reserving
    53  of all of its debts and obligations.
    54    (d)  The commission shall publish its by-laws in a convenient form and
    55  file a copy thereof and a copy of any amendment thereto, with the appro-
    56  priate agency or officer in each of the compacting states.

        A. 4822                             7
 
     1    (e) A management committee comprising no more  than  fourteen  members
     2  shall be established as follows:
     3    (1) one member from each of the six compacting states with the largest
     4  premium  volume  for  individual  and  group annuities, life, disability
     5  income and  long-term  care  insurance  products,  determined  from  the
     6  records of the NAIC as of December thirty-first of the prior year;
     7    (2)  four  members  from  those  compacting  states  with at least two
     8  percent of the market based on the premium volume described in paragraph
     9  one of this subsection, other than six compacting states with the  larg-
    10  est  premium  volume,  selected  on  a rotating basis as provided in the
    11  by-laws; and
    12    (3) four members from those  compacting  states  with  less  than  two
    13  percent  of  the  market, based on the premium volume described in para-
    14  graph one of this subsection, with one selected from each  of  the  four
    15  zone regions of the NAIC as provided in the by-laws.
    16    (f)  The  management committee shall have such authority and duties as
    17  may be set forth in the by-laws, including but not limited to:
    18    (1) managing the affairs of the commission in a manner consistent with
    19  the by-laws and purposes of the commission;
    20    (2) establishing and overseeing an  organizational  structure  within,
    21  and  appropriate  procedures  for,  the  commission  to  provide for the
    22  creation of uniform standards and other rules,  receipt  and  review  of
    23  product  filings, administrative and technical support functions, review
    24  of decisions regarding the disapproval of  a  product  filing,  and  the
    25  review  of  elections made by a compacting state to opt out of a uniform
    26  standard; provided that a uniform standard shall not be submitted to the
    27  compacting states for adoption unless  approved  by  two-thirds  of  the
    28  members of the management committee;
    29    (3) overseeing the offices of the commission; and
    30    (4) planning, implementing, and coordinating communications and activ-
    31  ities  with  other  state, federal and local government organizations in
    32  order to advance the goals of the commission.
    33    (g) The commission shall elect annually officers from  the  management
    34  committee,  with each having such authority and duties, as may be speci-
    35  fied in the by-laws.
    36    (h) The management committee may,  subject  to  the  approval  of  the
    37  commission,  appoint  or  retain  an executive director for such period,
    38  upon such terms and conditions and for such compensation as the  commis-
    39  sion  may deem appropriate. The executive director shall serve as secre-
    40  tary to the commission, but shall not be a member of the commission. The
    41  executive director shall hire and supervise such other staff as  may  be
    42  authorized by the commission.
    43    (i)  A  legislative  committee  comprising  state legislators or their
    44  designees shall be established to monitor the operations  of,  and  make
    45  recommendations   to,  the  commission;  provided  that  the  manner  of
    46  selection and term of any legislative committee member shall be  as  set
    47  forth  in  the  by-laws.  Prior to the adoption by the commission of any
    48  uniform standard, revision  to  the  by-laws,  annual  budget  or  other
    49  significant  matter  as  may  be provided in the by-laws, the management
    50  committee shall consult with and report to the legislative committee.
    51    (j) The commission shall establish two  advisory  committees,  one  of
    52  which  shall comprise consumer representatives independent of the insur-
    53  ance industry and the  other  comprising  insurance  industry  represen-
    54  tatives.
    55    (k) The commission may establish additional advisory committees as its
    56  by-laws may provide for the carrying out of its functions.

        A. 4822                             8
 
     1    (l)  The  commission shall maintain its corporate books and records in
     2  accordance with the by-laws.
     3    (m) The members, officers, executive director, employees and represen-
     4  tatives  of  the  commission  shall  be  immune from suit and liability,
     5  either personally or in their official capacity, for  any  action  taken
     6  reasonably  and  in good faith which results in a claim for damage to or
     7  loss of property or personal injury or other civil liability  caused  by
     8  or  arising  out  of  any  actual or alleged act, error or omission that
     9  occurred, or that such person  had  a  reasonable  basis  for  believing
    10  occurred  within the scope of commission employment, duties or responsi-
    11  bilities; provided, that nothing in this section shall be  construed  to
    12  protect any such person from suit and/or liability for any damage, loss,
    13  injury  or  liability  caused  by  the intentional or willful and wanton
    14  misconduct of that person.
    15    (n) The commission shall defend any member, officer, executive  direc-
    16  tor,  employee  or  representative of the commission in any civil action
    17  seeking to impose liability arising out of any actual  or  alleged  act,
    18  error  or  omission that occurred within the scope of commission employ-
    19  ment, duties or responsibilities, or that the defendant had a reasonable
    20  basis for believing occurred within the scope of commission  employment,
    21  duties or responsibilities; provided, that nothing in this section shall
    22  be construed to prohibit that person from retaining his or her own coun-
    23  sel;  and  provided  further,  that  the actual or alleged act, error or
    24  omission did not result from that person's intentional  or  willful  and
    25  wanton misconduct.
    26    (o) The commission shall indemnify and hold harmless any member, offi-
    27  cer,  executive  director,  employee or representative of the commission
    28  for the amount of any  settlement  or  judgment  obtained  against  such
    29  persons arising out of any actual or alleged act, error or omission that
    30  occurred  within the scope of commission employment, duties or responsi-
    31  bilities, or that such person  had  a  reasonable  basis  for  believing
    32  occurred  within the scope of commission employment, duties or responsi-
    33  bilities, provided, that the actual or alleged act,  error  or  omission
    34  did  not result from the intentional or willful and wanton misconduct of
    35  any such person.
    36    § 8807. Meetings and acts of the commission. (a) The commission  shall
    37  meet and take such actions as are consistent with the provisions of this
    38  compact and the by-laws.
    39    (b)  Each  member  of the commission shall have the right and power to
    40  cast a vote to which that compacting state is entitled  and  to  partic-
    41  ipate in the business and affairs of the commission. A member shall vote
    42  in person or by such other means as provided in the by-laws. The by-laws
    43  may provide for members' participation in meetings by telephone or other
    44  means of communication.
    45    (c) The commission shall meet at least once during each calendar year.
    46  Additional meetings shall be held as set forth in the by-laws.
    47    §  8808.  Rules and operating procedures; rule making functions of the
    48  commission and opting out of uniform standards. (a) The commission shall
    49  promulgate reasonable rules, including uniform standards  and  operating
    50  procedures, in order to effectively and efficiently achieve the purposes
    51  of  the compact. Notwithstanding the foregoing, in the event the commis-
    52  sion exercises its rule making authority in a manner that is beyond  the
    53  scope  of  the  purposes  of this article, or the powers granted in this
    54  section, then such action by the commission shall be invalid and have no
    55  force and effect.

        A. 4822                             9
 
     1    (b) Rules and operating procedures shall be made pursuant  to  a  rule
     2  making process that conforms to the model state administrative procedure
     3  act  of  1981 as amended, as may be appropriate to the operations of the
     4  commission. Before the commission adopts a uniform standard, the commis-
     5  sion shall give written notice to the relevant state legislative commit-
     6  tee  in  each  compacting  state responsible for insurance issues of its
     7  intention to adopt such uniform standard. The commission in  adopting  a
     8  uniform  standard shall consider fully all submitted materials and issue
     9  a concise explanation of its decision.
    10    (c) A uniform standard shall become effective ninety  days  after  its
    11  promulgation  by the commission or such later date as the commission may
    12  determine; provided, however, that a compacting state may opt out  of  a
    13  uniform standard as provided in this article. "Opt out" shall be defined
    14  as  any  action by a compacting state to decline to adopt or participate
    15  in a promulgated uniform standard. All other rules and operating  proce-
    16  dures,  and  amendments  thereto,  shall become effective as of the date
    17  specified in each rule, operating procedure or amendment.
    18    (d) A compacting state may opt out of a uniform  standard,  either  by
    19  legislation  or  regulation duly promulgated by the insurance department
    20  under the compacting state's administrative procedure act. If a compact-
    21  ing state elects to opt out of a uniform standard by regulation, it must
    22  give written notice to the commission no later than  ten  business  days
    23  after  the  later  of the uniform standard is promulgated or at the time
    24  the state becomes a compacting state, and find that the uniform standard
    25  does not provide reasonable protections to the  citizens  of  the  state
    26  given  the conditions in the state. The commissioner shall make specific
    27  findings of fact and conclusions of law, based on a preponderance of the
    28  evidence, detailing the conditions in the state which warrant  a  depar-
    29  ture from the uniform standard and determining that the uniform standard
    30  would not reasonably protect the citizens of the state. The commissioner
    31  must consider and balance the following factors and find that the condi-
    32  tions in the state and needs of the citizens of the state outweigh:
    33    (1)  the intent of the legislature to participate in, and the benefits
    34  of, an interstate  agreement  to  establish  national  uniform  consumer
    35  protections for the products subject to this article; and
    36    (2)  the presumption that a uniform standard adopted by the commission
    37  provides reasonable protections to consumers of the relevant product.
    38    Notwithstanding the foregoing, a compacting state may, at the time  of
    39  its enactment of the compact, prospectively opt out of all uniform stan-
    40  dards  involving  the  long-term  care  insurance  products by expressly
    41  providing for such opt out in the enacted  compact,  and  such  opt  out
    42  shall  not  be treated as a material variance in the offer or acceptance
    43  of any state to participate in the compact. Such an  opt  out  shall  be
    44  effective  at  the  time  of  enactment of the compact by the compacting
    45  state and shall apply to all existing uniform standards involving  long-
    46  term care insurance products and those subsequently promulgated.
    47    (e) If a compacting state elects to opt out of a uniform standard, the
    48  uniform  standard shall remain applicable in the compacting state elect-
    49  ing to opt out until such time the opt out legislation is  enacted  into
    50  law or the regulation opting out becomes effective.
    51    (f)  Once  the  opt  out  of  a uniform standard by a compacting state
    52  becomes effective as provided under the laws of that state, the  uniform
    53  standard shall have no further force and effect in that state unless and
    54  until the legislation or regulation implementing the opt out is repealed
    55  or  otherwise  becomes  ineffective  under  the  laws of the state. If a
    56  compacting state opts out of a uniform standard after the uniform stand-

        A. 4822                            10
 
     1  ard has been made effective in that state, the opt out  shall  have  the
     2  same  prospective  effect as provided under section eight thousand eight
     3  hundred fifteen of this article for withdrawals.
     4    (g) If a compacting state has formally initiated the process of opting
     5  out  of  a  uniform standard by regulation, and while the regulatory opt
     6  out is pending, the compacting state may  petition  the  commission,  at
     7  least fifteen days before the effective date of the uniform standard, to
     8  stay  the  effectiveness  of  the  uniform  standard  in that state. The
     9  commission may grant a stay if it determines the regulatory opt  out  is
    10  being  pursued  in  a  reasonable  manner  and  there is a likelihood of
    11  success. If a stay is granted or extended by the commission, the stay or
    12  extension thereof may postpone the effective date by up to ninety  days,
    13  unless  affirmatively  extended  by  the commission; provided however, a
    14  stay may not be permitted to remain in effect for  more  than  one  year
    15  unless  the  compacting state can show extraordinary circumstances which
    16  warrant a continuance of the stay including, but  not  limited  to,  the
    17  existence  of a legal challenge which prevents the compacting state from
    18  opting out. A stay may be terminated by the commission upon notice  that
    19  the rule making process has been terminated.
    20    (h)  Not later than thirty days after a rule or operating procedure is
    21  promulgated, any person may file a petition for judicial review  of  the
    22  rule  or operating procedure; provided, however, that the filing of such
    23  a petition shall not stay or otherwise prevent  the  rule  or  operating
    24  procedure  from becoming effective unless the court finds that the peti-
    25  tioner has a substantial likelihood of success.  The  court  shall  give
    26  deference  to  the  actions of the commission consistent with applicable
    27  law and shall not find the rule or operating procedure to be unlawful if
    28  the rule or operating procedure represents a reasonable exercise of  the
    29  commission's authority.
    30    §  8809.  Commission records and enforcement. (a) The commission shall
    31  promulgate rules  establishing  conditions  and  procedures  for  public
    32  inspection  and  copying of its information and official records, except
    33  such information and records involving the privacy  of  individuals  and
    34  insurers'  trade secrets. The commission may promulgate additional rules
    35  under which it may make available to federal and state agencies, includ-
    36  ing law enforcement agencies, records and information  otherwise  exempt
    37  from  disclosure,  and  may  enter into agreements with such agencies to
    38  receive or exchange information or records subject to nondisclosure  and
    39  confidentiality provisions.
    40    (b) Except as to privileged records, data and information, the laws of
    41  any  compacting  state  pertaining  to  confidentiality or nondisclosure
    42  shall not relieve any compacting  state  commissioner  of  the  duty  to
    43  disclose  any  relevant  records, data or information to the commission;
    44  provided however, that disclosure to the commission shall not be  deemed
    45  to  waive  or  otherwise  affect  any  confidentiality  requirement; and
    46  provided further that, except as otherwise expressly  provided  in  this
    47  article, the commission shall not be subject to the laws of any compact-
    48  ing  state  pertaining to confidentiality and nondisclosure with respect
    49  to records, data and information in its possession. Confidential  infor-
    50  mation  of  the commission shall remain confidential after such informa-
    51  tion is provided to any commissioner.
    52    (c) The commission shall monitor compacting states for compliance with
    53  duly adopted by-laws, rules, including uniform standards, and  operating
    54  procedures.  The  commission  shall  notify such noncomplying compacting
    55  state in writing of its noncompliance with commission by-laws, rules  or
    56  operating  procedures.  If  the  noncomplying  compacting state fails to

        A. 4822                            11
 
     1  remedy such noncompliance within the time specified  in  the  notice  of
     2  noncompliance,  the compacting state shall be deemed to be in default as
     3  set forth in section eight thousand eight hundred fifteen of this  arti-
     4  cle.
     5    (d) The commissioner of any state in which an insurer is authorized to
     6  do  business, or is conducting the business of insurance, shall continue
     7  to exercise his or her authority to oversee the market regulation of the
     8  activities of the insurer in  accordance  with  the  provisions  of  the
     9  state's  law.  The  commissioner's  enforcement  of  compliance with the
    10  compact is governed by the following provisions:
    11    (1) with respect to the commissioner's market regulation of a  product
    12  or  advertisement  that  is approved or certified to the commission, the
    13  content of the product or advertisement shall not constitute a violation
    14  of the provisions, standards or requirements of the compact except  upon
    15  a final order of the commission, issued at the request of a commissioner
    16  after  prior notice to the insurer and an opportunity for hearing before
    17  the commission.
    18    (2) before a commissioner may bring an action  for  violation  of  any
    19  provision,  standard  or  requirement  of  the  compact  relating to the
    20  content of an advertisement not approved or certified to the commission,
    21  the commission or an authorized commission  officer  or  employee,  must
    22  authorize  the action. However, authorization pursuant to this paragraph
    23  does not require notice to  the  insurer,  opportunity  for  hearing  or
    24  disclosure  of requests for authorization or records of the commission's
    25  action on such requests.
    26    § 8810. Dispute resolution. The commission  shall  attempt,  upon  the
    27  request  of  a  member, to resolve any disputes or other issues that are
    28  subject to this compact and which may arise between two or more compact-
    29  ing states, or between compacting states and non-compacting states,  and
    30  the  commission  shall  promulgate  an operating procedure providing for
    31  resolution of such disputes.
    32    § 8811. Product filing and  approval.  (a)  Insurers  and  third-party
    33  filers  seeking  to have a product approved by the commission shall file
    34  such product with, and pay applicable filing fees  to,  the  commission.
    35  Nothing  in  this  article  shall  be construed to restrict or otherwise
    36  prevent an insurer from filing its product with the insurance department
    37  in any state wherein such insurer is licensed to conduct the business of
    38  insurance, and such filing shall be subject to the laws  of  the  states
    39  where filed.
    40    (b) The commission shall establish appropriate filing and review proc-
    41  esses  and  procedures pursuant to commission rules and operating proce-
    42  dures. Notwithstanding any provision in this section  to  the  contrary,
    43  the commission shall promulgate rules to establish conditions and proce-
    44  dures  under  which the commission will provide public access to product
    45  filing information. In establishing such  rules,  the  commission  shall
    46  consider  the  interests of the public in having access to such informa-
    47  tion, as well as protection of personal medical and  financial  informa-
    48  tion  and  trade  secrets,  that may be contained in a product filing or
    49  supporting information.
    50    (c) Any product approved by the commission may be  sold  or  otherwise
    51  issued  in  those  compacting  states  in  which  the insurer is legally
    52  authorized to do business.
    53    § 8812. Review of commission  decisions  regarding  filings.  (a)  Not
    54  later than thirty days after the commission has given notice of a disap-
    55  proved  product  or advertisement filed with the commission, the insurer
    56  or third party filer whose filing was disapproved may appeal the  deter-

        A. 4822                            12
 
     1  mination  to  a review panel appointed by the commission. The commission
     2  shall promulgate rules  to  establish  procedures  for  appointing  such
     3  review  panel and provide for notice and hearing. An allegation that the
     4  commission,  in  disapproving  a product or advertisement filed with the
     5  commission, acted arbitrarily, capriciously or in a manner  that  is  an
     6  abuse  of discretion or otherwise not in accordance with law, is subject
     7  to judicial review in accordance with subsection (e)  of  section  eight
     8  thousand eight hundred four of this article.
     9    (b)  The commission shall have authority to monitor, review and recon-
    10  sider products and advertisement subsequent to their filing or  approval
    11  upon a finding that the product does not meet the relevant uniform stan-
    12  dard.  Where  appropriate,  the  commission  may  withdraw or modify its
    13  approval after proper notice and hearing, subject to the appeal  process
    14  set forth in subsection (a) of this section.
    15    §  8813.  Finance.  (a)  The  commission  shall pay or provide for the
    16  payment of the reasonable expenses of its  establishment  and  organiza-
    17  tion.  To  fund  the  cost of its initial operations, the commission may
    18  accept contributions and other forms of funding from the NAIC,  compact-
    19  ing  states  and other sources. Contributions and other forms of funding
    20  from other sources shall be of such a nature that  the  independence  of
    21  the  commission  concerning  the  performance of its duties shall not be
    22  compromised.
    23    (b) The commission shall collect a filing fee from  each  insurer  and
    24  third party filer filing a product with the commission to cover the cost
    25  of  the  operations  and activities of the commission and its staff in a
    26  total amount sufficient to cover the commission's annual budget.
    27    (c) The commission's budget for a fiscal year shall  not  be  approved
    28  until  it has been subject to notice and comment as set forth in section
    29  eight thousand eight hundred eight of this article.
    30    (d) The commission shall be exempt from all taxation  in  and  by  the
    31  compacting states.
    32    (e)  The  commission  shall  not  pledge  the credit of any compacting
    33  state, except by and  with  the  appropriate  legal  authority  of  that
    34  compacting state.
    35    (f)  The  commission  shall keep complete and accurate accounts of all
    36  its internal receipts, including grants and donations and  disbursements
    37  of  all  funds under its control. The internal financial accounts of the
    38  commission shall be subject to  the  accounting  procedures  established
    39  under  its  by-laws.  The  financial  accounts and reports including the
    40  system of internal controls and procedures of the  commission  shall  be
    41  audited annually by an independent certified public accountant. Upon the
    42  determination of the commission, but no less frequently than every three
    43  years, the review of such independent auditor shall include a management
    44  and  performance  audit  of the commission. The commission shall make an
    45  annual report to the governor and legislature of the compacting  states,
    46  which shall include a report of such independent audit. The commission's
    47  internal  accounts  shall  not be confidential and such materials may be
    48  shared with the commissioner  of  any  compacting  state  upon  request,
    49  provided, however, that any work papers related to any internal or inde-
    50  pendent  audit  and any information regarding the privacy of individuals
    51  and insurers' proprietary information, including  trade  secrets,  shall
    52  remain confidential.
    53    (g)  No  compacting  state shall have any claim to or ownership of any
    54  property held by or vested in the commission or to any commission  funds
    55  held pursuant to the provisions of this compact.

        A. 4822                            13
 
     1    § 8814. Compacting states, effective date and amendment. (a) Any state
     2  is eligible to become a compacting state.
     3    (b)  The  compact  shall become effective and binding upon legislative
     4  enactment of the compact into law by  two  compacting  states;  provided
     5  however,  that  the  commission  shall  become effective for purposes of
     6  adopting uniform standards for reviewing, and giving approval or  disap-
     7  proval  of,  products  filed with the commission that satisfy applicable
     8  uniform standards only after twenty-six states are compacting states or,
     9  alternatively, by states representing greater than forty percent of  the
    10  premium  volume for life insurance, annuity, disability income and long-
    11  term care insurance products, based on records of the NAIC for the prior
    12  year. Thereafter, it shall become effective and binding as to any  other
    13  compacting state upon enactment of the compact into law by that state.
    14    (c)  Amendments  to  the compact may be proposed by the commission for
    15  enactment by the compacting states. No amendment shall become  effective
    16  and  binding  upon  the  commission and the compacting states unless and
    17  until all compacting states enact the amendment into law.
    18    § 8815. Withdrawal, default and termination.  (a)(1)  Once  effective,
    19  the  compact  shall  continue  in force and remain binding upon each and
    20  every compacting state; provided that a compacting  state  may  withdraw
    21  from  the  compact  ("withdrawing  state") by enacting a statute specif-
    22  ically repealing the statute which enacted the compact into law.
    23    (2) The effective date of withdrawal is  the  effective  date  of  the
    24  repealing statute.  However, the withdrawal shall not apply to any prod-
    25  uct  filings  approved  or  self-certified, or any advertisement of such
    26  products, on the date the repealing statute becomes effective, except by
    27  mutual agreement of the commission and the withdrawing state unless  the
    28  approval  is rescinded by the withdrawing state as provided in paragraph
    29  five of this subsection.
    30    (3) The commissioner of the withdrawing state shall immediately notify
    31  the management committee in writing upon the introduction of legislation
    32  repealing this compact in the withdrawing state.
    33    (4) The commission shall notify the other  compacting  states  of  the
    34  introduction  of  such  legislation within ten days after its receipt of
    35  notice thereof.
    36    (5) The withdrawing state is responsible for all  obligations,  duties
    37  and  liabilities  incurred  through  the  effective  date of withdrawal,
    38  including any obligations, the performance of which  extend  beyond  the
    39  effective date of withdrawal, except to the extent those obligations may
    40  have been released or relinquished by mutual agreement of the commission
    41  and  the  withdrawing  state.  The commission's approval of products and
    42  advertisement prior to the effective date of withdrawal  shall  continue
    43  to  be  effective  and be given full force and effect in the withdrawing
    44  state, unless formally rescinded by the withdrawing state  in  the  same
    45  manner as provided by the laws of the withdrawing state for the prospec-
    46  tive  disapproval of products or advertisement previously approved under
    47  state law.
    48    (6) Reinstatement following withdrawal of any compacting  state  shall
    49  occur  upon  the  effective  date of the withdrawing state's legislation
    50  reenacting the compact.
    51    (b) (1) If the commission determines that any compacting state has  at
    52  any time defaulted ("defaulting state") in the performance of any of its
    53  obligations  or responsibilities under this compact, the by-laws or duly
    54  promulgated rules or operating procedures, then, after notice and  hear-
    55  ing  as  set  forth  in the by-laws, all rights, privileges and benefits
    56  conferred by the compact on the defaulting state shall be suspended from

        A. 4822                            14
 
     1  the effective date of default as fixed by the  commission.  The  grounds
     2  for  default  include,  but  are not limited to, failure of a compacting
     3  state to perform its obligations  or  responsibilities,  and  any  other
     4  grounds designated in commission rules. The commission shall immediately
     5  notify the defaulting state in writing of the defaulting state's suspen-
     6  sion  pending  a cure of the default. The commission shall stipulate the
     7  conditions and the time period within which the  defaulting  state  must
     8  cure  its  default.  If  the  defaulting state fails to cure the default
     9  within the time period specified by the commission, the defaulting state
    10  shall be terminated from the compact  and  all  rights,  privileges  and
    11  benefits conferred by the compact shall be terminated from the effective
    12  date of termination.
    13    (2)  Product  approvals  by  the commission or product self-certifica-
    14  tions, or any advertisement in connection with such product, that are in
    15  force on the effective date of termination shall remain in force in  the
    16  defaulting state in the same manner as if the defaulting state had with-
    17  drawn voluntarily under this section.
    18    (3)  Reinstatement  following  termination  of  any  compacting  state
    19  requires a reenactment of the compact by that state.
    20    (c)(1) The compact dissolves effective upon the date of the withdrawal
    21  or default of the compacting  state  which  reduces  membership  in  the
    22  compact to one compacting state.
    23    (2)  Upon the dissolution of the compact, the compact becomes null and
    24  void and shall be of no further force or effect, and  the  business  and
    25  affairs  of the commission shall be wound up and any surplus funds shall
    26  be distributed in accordance with the by-laws.
    27    § 8816. Severability and  construction.  (a)  The  provisions  of  the
    28  compact  shall  be  severable;  and  if  any phrase, clause, sentence or
    29  provision is deemed  unenforceable,  the  remaining  provisions  of  the
    30  compact shall be enforceable.
    31    (b)  The  provisions  of  the  compact shall be liberally construed to
    32  effectuate its purposes.
    33    § 8817. Binding effect of compact and other laws. (a) Nothing in  this
    34  section prevents the enforcement of any other law of a compacting state,
    35  except as provided in subsection (b) of this section.
    36    (b)  For  any  product  approved  or  certified to the commission, the
    37  rules, uniform standards and any other requirements  of  the  commission
    38  shall  constitute  the  exclusive  provisions applicable to the content,
    39  approval and certification of such products. For advertisement  that  is
    40  subject  to  the  commission's  authority, any rule, uniform standard or
    41  other requirement of the commission which governs  the  content  of  the
    42  advertisement  shall  constitute  the exclusive provision that a commis-
    43  sioner may apply to the content of  the  advertisement.  Notwithstanding
    44  the  foregoing,  no  action  taken  by  the commission shall abrogate or
    45  restrict:
    46    (1) the access of any person to state courts;
    47    (2) remedies available under state law related to breach of  contract,
    48  tort or other laws not specifically directed to the content of the prod-
    49  uct;
    50    (3) state law relating to the construction of insurance contracts; or
    51    (4)  the authority of the attorney general of the state including, but
    52  not limited to, maintaining any actions or proceedings as authorized  by
    53  law.
    54    (c)  All  insurance  products  filed  with  individual states shall be
    55  subject to the laws of those states.

        A. 4822                            15

     1    (d) All lawful actions of the  commission,  including  all  rules  and
     2  operating procedures promulgated by the commission, are binding upon the
     3  compacting states.
     4    (e)  All  agreements  between the commission and the compacting states
     5  are binding in accordance with their terms.
     6    (f) Upon the request of a party to a  conflict  over  the  meaning  or
     7  interpretation  of  commission  actions, and upon a majority vote of the
     8  compacting states, the commission may issue advisory opinions  regarding
     9  the disputed meaning or interpretation.
    10    (g)  In  the event any provision of this article exceeds the constitu-
    11  tional limits imposed on the legislature of any  compacting  state,  the
    12  obligations,  duties,  powers  or jurisdiction sought to be conferred by
    13  that provision upon the commission  shall  be  ineffective  as  to  such
    14  compacting  state,  and such obligations, duties, powers or jurisdiction
    15  shall remain in the compacting state and shall be exercised by the agen-
    16  cy thereof to which such obligations, duties, powers or jurisdiction are
    17  delegated by law in effect at the time the compact becomes effective.
    18    § 3. This act shall take effect January 1, 2018 and shall  expire  and
    19  be deemed repealed December 31, 2020; provided, however, that any policy
    20  or contract issued during the period that the provisions of this act are
    21  in  effect  that  has been approved in accordance with the provisions of
    22  this act shall continue in full force and effect.
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