S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1262
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                    January 8, 2015
                                      ___________
       Introduced  by  M.  of A. TITUS, ROBINSON, 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    S  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.
                                                                  LBD06596-01-5
       A. 1262                             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    S 8801. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
   17  THE "INTERSTATE INSURANCE PRODUCT REGULATION COMPACT".
   18    S  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    S 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. 1262                             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    S  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. 1262                             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    S 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
   33  LONG-TERM CARE INSURANCE PRODUCTS, AND GIVE APPROVAL OF  THOSE  PRODUCTS
   34  AND  RATE  FILINGS  THAT  SATISFY THE APPLICABLE UNIFORM STANDARD, WHERE
   35  SUCH APPROVAL SHALL HAVE THE FORCE AND EFFECT OF LAW AND BE  BINDING  ON
   36  THE  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. 1262                             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. 1262                             6
    1  DIRECT  FUNDING  OF  THE LAWFUL AND AUTHORIZED OPERATIONS OF THE COMMIS-
    2  SION.
    3    S  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. 1262                             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. 1262                             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    S 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    S  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. 1262                             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. 1262                            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    S  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. 1262                            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    S 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    S 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    S 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. 1262                            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    S  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. 1262                            13
    1    S 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    S 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. 1262                            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    S 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    S 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. 1262                            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    S 3. This act shall take effect January 1, 2016 and shall  expire  and
   19  be deemed repealed December 31, 2018; 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.