Bill Text: NY S03057 | 2011-2012 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2012-06-19 - referred to insurance [S03057 Detail]
Download: New_York-2011-S03057-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 3057 2011-2012 Regular Sessions I N S E N A T E February 8, 2011 ___________ Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed 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. LBD08107-03-1 S. 3057 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. S. 3057 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 S. 3057 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 S. 3057 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 S. 3057 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. S. 3057 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. S. 3057 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 CLAIM FOR 6 DAMAGE TO OR LOSS OF PROPERTY OR PERSONAL INJURY OR OTHER CIVIL LIABIL- 7 ITY CAUSED BY OR ARISING OUT OF ANY ACTUAL OR ALLEGED ACT, ERROR OR 8 OMISSION THAT OCCURRED, OR THAT SUCH PERSON HAD A REASONABLE BASIS FOR 9 BELIEVING OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES OR 10 RESPONSIBILITIES; PROVIDED, THAT NOTHING IN THIS SECTION SHALL BE 11 CONSTRUED TO PROTECT ANY SUCH PERSON FROM SUIT AND/OR LIABILITY FOR ANY 12 DAMAGE, LOSS, INJURY OR LIABILITY CAUSED BY THE INTENTIONAL OR WILLFUL 13 AND WANTON MISCONDUCT OF THAT PERSON. 14 (N) THE COMMISSION SHALL DEFEND ANY MEMBER, OFFICER, EXECUTIVE DIREC- 15 TOR, EMPLOYEE OR REPRESENTATIVE OF THE COMMISSION IN ANY CIVIL ACTION 16 SEEKING TO IMPOSE LIABILITY ARISING OUT OF ANY ACTUAL OR ALLEGED ACT, 17 ERROR OR OMISSION THAT OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOY- 18 MENT, DUTIES OR RESPONSIBILITIES, OR THAT THE DEFENDANT HAD A REASONABLE 19 BASIS FOR BELIEVING OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, 20 DUTIES OR RESPONSIBILITIES; PROVIDED, THAT NOTHING IN THIS SECTION SHALL 21 BE CONSTRUED TO PROHIBIT THAT PERSON FROM RETAINING HIS OR HER OWN COUN- 22 SEL; AND PROVIDED FURTHER, THAT THE ACTUAL OR ALLEGED ACT, ERROR OR 23 OMISSION DID NOT RESULT FROM THAT PERSON'S INTENTIONAL OR WILLFUL AND 24 WANTON MISCONDUCT. 25 (O) THE COMMISSION SHALL INDEMNIFY AND HOLD HARMLESS ANY MEMBER, OFFI- 26 CER, EXECUTIVE DIRECTOR, EMPLOYEE OR REPRESENTATIVE OF THE COMMISSION 27 FOR THE AMOUNT OF ANY SETTLEMENT OR JUDGMENT OBTAINED AGAINST SUCH 28 PERSONS ARISING OUT OF ANY ACTUAL OR ALLEGED ACT, ERROR OR OMISSION THAT 29 OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES OR RESPONSI- 30 BILITIES, OR THAT SUCH PERSON HAD A REASONABLE BASIS FOR BELIEVING 31 OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES OR RESPONSI- 32 BILITIES, PROVIDED, THAT THE ACTUAL OR ALLEGED ACT, ERROR OR OMISSION 33 DID NOT RESULT FROM THE INTENTIONAL OR WILLFUL AND WANTON MISCONDUCT OF 34 ANY SUCH PERSON. 35 S 8807. MEETINGS AND ACTS OF THE COMMISSION. (A) THE COMMISSION SHALL 36 MEET AND TAKE SUCH ACTIONS AS ARE CONSISTENT WITH THE PROVISIONS OF THIS 37 COMPACT AND THE BY-LAWS. 38 (B) EACH MEMBER OF THE COMMISSION SHALL HAVE THE RIGHT AND POWER TO 39 CAST A VOTE TO WHICH THAT COMPACTING STATE IS ENTITLED AND TO PARTIC- 40 IPATE IN THE BUSINESS AND AFFAIRS OF THE COMMISSION. A MEMBER SHALL VOTE 41 IN PERSON OR BY SUCH OTHER MEANS AS PROVIDED IN THE BY-LAWS. THE BY-LAWS 42 MAY PROVIDE FOR MEMBERS' PARTICIPATION IN MEETINGS BY TELEPHONE OR OTHER 43 MEANS OF COMMUNICATION. 44 (C) THE COMMISSION SHALL MEET AT LEAST ONCE DURING EACH CALENDAR YEAR. 45 ADDITIONAL MEETINGS SHALL BE HELD AS SET FORTH IN THE BY-LAWS. 46 S 8808. RULES AND OPERATING PROCEDURES; RULE MAKING FUNCTIONS OF THE 47 COMMISSION AND OPTING OUT OF UNIFORM STANDARDS. (A) THE COMMISSION SHALL 48 PROMULGATE REASONABLE RULES, INCLUDING UNIFORM STANDARDS AND OPERATING 49 PROCEDURES, IN ORDER TO EFFECTIVELY AND EFFICIENTLY ACHIEVE THE PURPOSES 50 OF THE COMPACT. NOTWITHSTANDING THE FOREGOING, IN THE EVENT THE COMMIS- 51 SION EXERCISES ITS RULE MAKING AUTHORITY IN A MANNER THAT IS BEYOND THE 52 SCOPE OF THE PURPOSES OF THIS ARTICLE, OR THE POWERS GRANTED IN THIS 53 SECTION, THEN SUCH ACTION BY THE COMMISSION SHALL BE INVALID AND HAVE NO 54 FORCE AND EFFECT. 55 (B) RULES AND OPERATING PROCEDURES SHALL BE MADE PURSUANT TO A RULE 56 MAKING PROCESS THAT CONFORMS TO THE MODEL STATE ADMINISTRATIVE PROCEDURE S. 3057 9 1 ACT OF 1981 AS AMENDED, AS MAY BE APPROPRIATE TO THE OPERATIONS OF THE 2 COMMISSION. BEFORE THE COMMISSION ADOPTS A UNIFORM STANDARD, THE COMMIS- 3 SION SHALL GIVE WRITTEN NOTICE TO THE RELEVANT STATE LEGISLATIVE COMMIT- 4 TEE IN EACH COMPACTING STATE RESPONSIBLE FOR INSURANCE ISSUES OF ITS 5 INTENTION TO ADOPT SUCH UNIFORM STANDARD. THE COMMISSION IN ADOPTING A 6 UNIFORM STANDARD SHALL CONSIDER FULLY ALL SUBMITTED MATERIALS AND ISSUE 7 A CONCISE EXPLANATION OF ITS DECISION. 8 (C) A UNIFORM STANDARD SHALL BECOME EFFECTIVE NINETY DAYS AFTER ITS 9 PROMULGATION BY THE COMMISSION OR SUCH LATER DATE AS THE COMMISSION MAY 10 DETERMINE; PROVIDED, HOWEVER, THAT A COMPACTING STATE MAY OPT OUT OF A 11 UNIFORM STANDARD AS PROVIDED IN THIS ARTICLE. "OPT OUT" SHALL BE DEFINED 12 AS ANY ACTION BY A COMPACTING STATE TO DECLINE TO ADOPT OR PARTICIPATE 13 IN A PROMULGATED UNIFORM STANDARD. ALL OTHER RULES AND OPERATING PROCE- 14 DURES, AND AMENDMENTS THERETO, SHALL BECOME EFFECTIVE AS OF THE DATE 15 SPECIFIED IN EACH RULE, OPERATING PROCEDURE OR AMENDMENT. 16 (D) A COMPACTING STATE MAY OPT OUT OF A UNIFORM STANDARD, EITHER BY 17 LEGISLATION OR REGULATION DULY PROMULGATED BY THE INSURANCE DEPARTMENT 18 UNDER THE COMPACTING STATE'S ADMINISTRATIVE PROCEDURE ACT. IF A COMPACT- 19 ING STATE ELECTS TO OPT OUT OF A UNIFORM STANDARD BY REGULATION, IT MUST 20 GIVE WRITTEN NOTICE TO THE COMMISSION NO LATER THAN TEN BUSINESS DAYS 21 AFTER THE LATER OF THE UNIFORM STANDARD IS PROMULGATED OR AT THE TIME 22 THE STATE BECOMES A COMPACTING STATE, AND FIND THAT THE UNIFORM STANDARD 23 DOES NOT PROVIDE REASONABLE PROTECTIONS TO THE CITIZENS OF THE STATE 24 GIVEN THE CONDITIONS IN THE STATE. THE COMMISSIONER SHALL MAKE SPECIFIC 25 FINDINGS OF FACT AND CONCLUSIONS OF LAW, BASED ON A PREPONDERANCE OF THE 26 EVIDENCE, DETAILING THE CONDITIONS IN THE STATE WHICH WARRANT A DEPAR- 27 TURE FROM THE UNIFORM STANDARD AND DETERMINING THAT THE UNIFORM STANDARD 28 WOULD NOT REASONABLY PROTECT THE CITIZENS OF THE STATE. THE COMMISSIONER 29 MUST CONSIDER AND BALANCE THE FOLLOWING FACTORS AND FIND THAT THE CONDI- 30 TIONS IN THE STATE AND NEEDS OF THE CITIZENS OF THE STATE OUTWEIGH: 31 (1) THE INTENT OF THE LEGISLATURE TO PARTICIPATE IN, AND THE BENEFITS 32 OF, AN INTERSTATE AGREEMENT TO ESTABLISH NATIONAL UNIFORM CONSUMER 33 PROTECTIONS FOR THE PRODUCTS SUBJECT TO THIS ARTICLE; AND 34 (2) THE PRESUMPTION THAT A UNIFORM STANDARD ADOPTED BY THE COMMISSION 35 PROVIDES REASONABLE PROTECTIONS TO CONSUMERS OF THE RELEVANT PRODUCT. 36 NOTWITHSTANDING THE FOREGOING, A COMPACTING STATE MAY, AT THE TIME OF 37 ITS ENACTMENT OF THE COMPACT, PROSPECTIVELY OPT OUT OF ALL UNIFORM STAN- 38 DARDS INVOLVING THE LONG-TERM CARE INSURANCE PRODUCTS BY EXPRESSLY 39 PROVIDING FOR SUCH OPT OUT IN THE ENACTED COMPACT, AND SUCH OPT OUT 40 SHALL NOT BE TREATED AS A MATERIAL VARIANCE IN THE OFFER OR ACCEPTANCE 41 OF ANY STATE TO PARTICIPATE IN THE COMPACT. SUCH AN OPT OUT SHALL BE 42 EFFECTIVE AT THE TIME OF ENACTMENT OF THE COMPACT BY THE COMPACTING 43 STATE AND SHALL APPLY TO ALL EXISTING UNIFORM STANDARDS INVOLVING LONG- 44 TERM CARE INSURANCE PRODUCTS AND THOSE SUBSEQUENTLY PROMULGATED. 45 (E) IF A COMPACTING STATE ELECTS TO OPT OUT OF A UNIFORM STANDARD, THE 46 UNIFORM STANDARD SHALL REMAIN APPLICABLE IN THE COMPACTING STATE ELECT- 47 ING TO OPT OUT UNTIL SUCH TIME THE OPT OUT LEGISLATION IS ENACTED INTO 48 LAW OR THE REGULATION OPTING OUT BECOMES EFFECTIVE. 49 (F) ONCE THE OPT OUT OF A UNIFORM STANDARD BY A COMPACTING STATE 50 BECOMES EFFECTIVE AS PROVIDED UNDER THE LAWS OF THAT STATE, THE UNIFORM 51 STANDARD SHALL HAVE NO FURTHER FORCE AND EFFECT IN THAT STATE UNLESS AND 52 UNTIL THE LEGISLATION OR REGULATION IMPLEMENTING THE OPT OUT IS REPEALED 53 OR OTHERWISE BECOMES INEFFECTIVE UNDER THE LAWS OF THE STATE. IF A 54 COMPACTING STATE OPTS OUT OF A UNIFORM STANDARD AFTER THE UNIFORM STAND- 55 ARD HAS BEEN MADE EFFECTIVE IN THAT STATE, THE OPT OUT SHALL HAVE THE S. 3057 10 1 SAME PROSPECTIVE EFFECT AS PROVIDED UNDER SECTION EIGHT THOUSAND EIGHT 2 HUNDRED FIFTEEN OF THIS ARTICLE FOR WITHDRAWALS. 3 (G) IF A COMPACTING STATE HAS FORMALLY INITIATED THE PROCESS OF OPTING 4 OUT OF A UNIFORM STANDARD BY REGULATION, AND WHILE THE REGULATORY OPT 5 OUT IS PENDING, THE COMPACTING STATE MAY PETITION THE COMMISSION, AT 6 LEAST FIFTEEN DAYS BEFORE THE EFFECTIVE DATE OF THE UNIFORM STANDARD, TO 7 STAY THE EFFECTIVENESS OF THE UNIFORM STANDARD IN THAT STATE. THE 8 COMMISSION MAY GRANT A STAY IF IT DETERMINES THE REGULATORY OPT OUT IS 9 BEING PURSUED IN A REASONABLE MANNER AND THERE IS A LIKELIHOOD OF 10 SUCCESS. IF A STAY IS GRANTED OR EXTENDED BY THE COMMISSION, THE STAY OR 11 EXTENSION THEREOF MAY POSTPONE THE EFFECTIVE DATE BY UP TO NINETY DAYS, 12 UNLESS AFFIRMATIVELY EXTENDED BY THE COMMISSION; PROVIDED HOWEVER, A 13 STAY MAY NOT BE PERMITTED TO REMAIN IN EFFECT FOR MORE THAN ONE YEAR 14 UNLESS THE COMPACTING STATE CAN SHOW EXTRAORDINARY CIRCUMSTANCES WHICH 15 WARRANT A CONTINUANCE OF THE STAY INCLUDING, BUT NOT LIMITED TO, THE 16 EXISTENCE OF A LEGAL CHALLENGE WHICH PREVENTS THE COMPACTING STATE FROM 17 OPTING OUT. A STAY MAY BE TERMINATED BY THE COMMISSION UPON NOTICE THAT 18 THE RULE MAKING PROCESS HAS BEEN TERMINATED. 19 (H) NOT LATER THAN THIRTY DAYS AFTER A RULE OR OPERATING PROCEDURE IS 20 PROMULGATED, ANY PERSON MAY FILE A PETITION FOR JUDICIAL REVIEW OF THE 21 RULE OR OPERATING PROCEDURE; PROVIDED, HOWEVER, THAT THE FILING OF SUCH 22 A PETITION SHALL NOT STAY OR OTHERWISE PREVENT THE RULE OR OPERATING 23 PROCEDURE FROM BECOMING EFFECTIVE UNLESS THE COURT FINDS THAT THE PETI- 24 TIONER HAS A SUBSTANTIAL LIKELIHOOD OF SUCCESS. THE COURT SHALL GIVE 25 DEFERENCE TO THE ACTIONS OF THE COMMISSION CONSISTENT WITH APPLICABLE 26 LAW AND SHALL NOT FIND THE RULE OR OPERATING PROCEDURE TO BE UNLAWFUL IF 27 THE RULE OR OPERATING PROCEDURE REPRESENTS A REASONABLE EXERCISE OF THE 28 COMMISSION'S AUTHORITY. 29 S 8809. COMMISSION RECORDS AND ENFORCEMENT. (A) THE COMMISSION SHALL 30 PROMULGATE RULES ESTABLISHING CONDITIONS AND PROCEDURES FOR PUBLIC 31 INSPECTION AND COPYING OF ITS INFORMATION AND OFFICIAL RECORDS, EXCEPT 32 SUCH INFORMATION AND RECORDS INVOLVING THE PRIVACY OF INDIVIDUALS AND 33 INSURERS' TRADE SECRETS. THE COMMISSION MAY PROMULGATE ADDITIONAL RULES 34 UNDER WHICH IT MAY MAKE AVAILABLE TO FEDERAL AND STATE AGENCIES, INCLUD- 35 ING LAW ENFORCEMENT AGENCIES, RECORDS AND INFORMATION OTHERWISE EXEMPT 36 FROM DISCLOSURE, AND MAY ENTER INTO AGREEMENTS WITH SUCH AGENCIES TO 37 RECEIVE OR EXCHANGE INFORMATION OR RECORDS SUBJECT TO NONDISCLOSURE AND 38 CONFIDENTIALITY PROVISIONS. 39 (B) EXCEPT AS TO PRIVILEGED RECORDS, DATA AND INFORMATION, THE LAWS OF 40 ANY COMPACTING STATE PERTAINING TO CONFIDENTIALITY OR NONDISCLOSURE 41 SHALL NOT RELIEVE ANY COMPACTING STATE COMMISSIONER OF THE DUTY TO 42 DISCLOSE ANY RELEVANT RECORDS, DATA OR INFORMATION TO THE COMMISSION; 43 PROVIDED HOWEVER, THAT DISCLOSURE TO THE COMMISSION SHALL NOT BE DEEMED 44 TO WAIVE OR OTHERWISE AFFECT ANY CONFIDENTIALITY REQUIREMENT; AND 45 PROVIDED FURTHER THAT, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS 46 ARTICLE, THE COMMISSION SHALL NOT BE SUBJECT TO THE LAWS OF ANY COMPACT- 47 ING STATE PERTAINING TO CONFIDENTIALITY AND NONDISCLOSURE WITH RESPECT 48 TO RECORDS, DATA AND INFORMATION IN ITS POSSESSION. CONFIDENTIAL INFOR- 49 MATION OF THE COMMISSION SHALL REMAIN CONFIDENTIAL AFTER SUCH INFORMA- 50 TION IS PROVIDED TO ANY COMMISSIONER. 51 (C) THE COMMISSION SHALL MONITOR COMPACTING STATES FOR COMPLIANCE WITH 52 DULY ADOPTED BY-LAWS, RULES, INCLUDING UNIFORM STANDARDS, AND OPERATING 53 PROCEDURES. THE COMMISSION SHALL NOTIFY SUCH NONCOMPLYING COMPACTING 54 STATE IN WRITING OF ITS NONCOMPLIANCE WITH COMMISSION BY-LAWS, RULES OR 55 OPERATING PROCEDURES. IF THE NONCOMPLYING COMPACTING STATE FAILS TO 56 REMEDY SUCH NONCOMPLIANCE WITHIN THE TIME SPECIFIED IN THE NOTICE OF S. 3057 11 1 NONCOMPLIANCE, THE COMPACTING STATE SHALL BE DEEMED TO BE IN DEFAULT AS 2 SET FORTH IN SECTION EIGHT THOUSAND EIGHT HUNDRED FIFTEEN OF THIS ARTI- 3 CLE. 4 (D) THE COMMISSIONER OF ANY STATE IN WHICH AN INSURER IS AUTHORIZED TO 5 DO BUSINESS, OR IS CONDUCTING THE BUSINESS OF INSURANCE, SHALL CONTINUE 6 TO EXERCISE HIS OR HER AUTHORITY TO OVERSEE THE MARKET REGULATION OF THE 7 ACTIVITIES OF THE INSURER IN ACCORDANCE WITH THE PROVISIONS OF THE 8 STATE'S LAW. THE COMMISSIONER'S ENFORCEMENT OF COMPLIANCE WITH THE 9 COMPACT IS GOVERNED BY THE FOLLOWING PROVISIONS: 10 (1) WITH RESPECT TO THE COMMISSIONER'S MARKET REGULATION OF A PRODUCT 11 OR ADVERTISEMENT THAT IS APPROVED OR CERTIFIED TO THE COMMISSION, THE 12 CONTENT OF THE PRODUCT OR ADVERTISEMENT SHALL NOT CONSTITUTE A VIOLATION 13 OF THE PROVISIONS, STANDARDS OR REQUIREMENTS OF THE COMPACT EXCEPT UPON 14 A FINAL ORDER OF THE COMMISSION, ISSUED AT THE REQUEST OF A COMMISSIONER 15 AFTER PRIOR NOTICE TO THE INSURER AND AN OPPORTUNITY FOR HEARING BEFORE 16 THE COMMISSION. 17 (2) BEFORE A COMMISSIONER MAY BRING AN ACTION FOR VIOLATION OF ANY 18 PROVISION, STANDARD OR REQUIREMENT OF THE COMPACT RELATING TO THE 19 CONTENT OF AN ADVERTISEMENT NOT APPROVED OR CERTIFIED TO THE COMMISSION, 20 THE COMMISSION OR AN AUTHORIZED COMMISSION OFFICER OR EMPLOYEE, MUST 21 AUTHORIZE THE ACTION. HOWEVER, AUTHORIZATION PURSUANT TO THIS PARAGRAPH 22 DOES NOT REQUIRE NOTICE TO THE INSURER, OPPORTUNITY FOR HEARING OR 23 DISCLOSURE OF REQUESTS FOR AUTHORIZATION OR RECORDS OF THE COMMISSION'S 24 ACTION ON SUCH REQUESTS. 25 S 8810. DISPUTE RESOLUTION. THE COMMISSION SHALL ATTEMPT, UPON THE 26 REQUEST OF A MEMBER, TO RESOLVE ANY DISPUTES OR OTHER ISSUES THAT ARE 27 SUBJECT TO THIS COMPACT AND WHICH MAY ARISE BETWEEN TWO OR MORE COMPACT- 28 ING STATES, OR BETWEEN COMPACTING STATES AND NON-COMPACTING STATES, AND 29 THE COMMISSION SHALL PROMULGATE AN OPERATING PROCEDURE PROVIDING FOR 30 RESOLUTION OF SUCH DISPUTES. 31 S 8811. PRODUCT FILING AND APPROVAL. (A) INSURERS AND THIRD-PARTY 32 FILERS SEEKING TO HAVE A PRODUCT APPROVED BY THE COMMISSION SHALL FILE 33 SUCH PRODUCT WITH, AND PAY APPLICABLE FILING FEES TO, THE COMMISSION. 34 NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO RESTRICT OR OTHERWISE 35 PREVENT AN INSURER FROM FILING ITS PRODUCT WITH THE INSURANCE DEPARTMENT 36 IN ANY STATE WHEREIN SUCH INSURER IS LICENSED TO CONDUCT THE BUSINESS OF 37 INSURANCE, AND SUCH FILING SHALL BE SUBJECT TO THE LAWS OF THE STATES 38 WHERE FILED. 39 (B) THE COMMISSION SHALL ESTABLISH APPROPRIATE FILING AND REVIEW PROC- 40 ESSES AND PROCEDURES PURSUANT TO COMMISSION RULES AND OPERATING PROCE- 41 DURES. NOTWITHSTANDING ANY PROVISION IN THIS SECTION TO THE CONTRARY, 42 THE COMMISSION SHALL PROMULGATE RULES TO ESTABLISH CONDITIONS AND PROCE- 43 DURES UNDER WHICH THE COMMISSION WILL PROVIDE PUBLIC ACCESS TO PRODUCT 44 FILING INFORMATION. IN ESTABLISHING SUCH RULES, THE COMMISSION SHALL 45 CONSIDER THE INTERESTS OF THE PUBLIC IN HAVING ACCESS TO SUCH INFORMA- 46 TION, AS WELL AS PROTECTION OF PERSONAL MEDICAL AND FINANCIAL INFORMA- 47 TION AND TRADE SECRETS, THAT MAY BE CONTAINED IN A PRODUCT FILING OR 48 SUPPORTING INFORMATION. 49 (C) ANY PRODUCT APPROVED BY THE COMMISSION MAY BE SOLD OR OTHERWISE 50 ISSUED IN THOSE COMPACTING STATES IN WHICH THE INSURER IS LEGALLY 51 AUTHORIZED TO DO BUSINESS. 52 S 8812. REVIEW OF COMMISSION DECISIONS REGARDING FILINGS. (A) NOT 53 LATER THAN THIRTY DAYS AFTER THE COMMISSION HAS GIVEN NOTICE OF A DISAP- 54 PROVED PRODUCT OR ADVERTISEMENT FILED WITH THE COMMISSION, THE INSURER 55 OR THIRD PARTY FILER WHOSE FILING WAS DISAPPROVED MAY APPEAL THE DETER- 56 MINATION TO A REVIEW PANEL APPOINTED BY THE COMMISSION. THE COMMISSION S. 3057 12 1 SHALL PROMULGATE RULES TO ESTABLISH PROCEDURES FOR APPOINTING SUCH 2 REVIEW PANEL AND PROVIDE FOR NOTICE AND HEARING. AN ALLEGATION THAT THE 3 COMMISSION, IN DISAPPROVING A PRODUCT OR ADVERTISEMENT FILED WITH THE 4 COMMISSION, ACTED ARBITRARILY, CAPRICIOUSLY OR IN A MANNER THAT IS AN 5 ABUSE OF DISCRETION OR OTHERWISE NOT IN ACCORDANCE WITH LAW, IS SUBJECT 6 TO JUDICIAL REVIEW IN ACCORDANCE WITH SUBSECTION (E) OF SECTION EIGHT 7 THOUSAND EIGHT HUNDRED FOUR OF THIS ARTICLE. 8 (B) THE COMMISSION SHALL HAVE AUTHORITY TO MONITOR, REVIEW AND RECON- 9 SIDER PRODUCTS AND ADVERTISEMENT SUBSEQUENT TO THEIR FILING OR APPROVAL 10 UPON A FINDING THAT THE PRODUCT DOES NOT MEET THE RELEVANT UNIFORM STAN- 11 DARD. WHERE APPROPRIATE, THE COMMISSION MAY WITHDRAW OR MODIFY ITS 12 APPROVAL AFTER PROPER NOTICE AND HEARING, SUBJECT TO THE APPEAL PROCESS 13 SET FORTH IN SUBSECTION (A) OF THIS SECTION. 14 S 8813. FINANCE. (A) THE COMMISSION SHALL PAY OR PROVIDE FOR THE 15 PAYMENT OF THE REASONABLE EXPENSES OF ITS ESTABLISHMENT AND ORGANIZA- 16 TION. TO FUND THE COST OF ITS INITIAL OPERATIONS, THE COMMISSION MAY 17 ACCEPT CONTRIBUTIONS AND OTHER FORMS OF FUNDING FROM THE NAIC, COMPACT- 18 ING STATES AND OTHER SOURCES. CONTRIBUTIONS AND OTHER FORMS OF FUNDING 19 FROM OTHER SOURCES SHALL BE OF SUCH A NATURE THAT THE INDEPENDENCE OF 20 THE COMMISSION CONCERNING THE PERFORMANCE OF ITS DUTIES SHALL NOT BE 21 COMPROMISED. 22 (B) THE COMMISSION SHALL COLLECT A FILING FEE FROM EACH INSURER AND 23 THIRD PARTY FILER FILING A PRODUCT WITH THE COMMISSION TO COVER THE COST 24 OF THE OPERATIONS AND ACTIVITIES OF THE COMMISSION AND ITS STAFF IN A 25 TOTAL AMOUNT SUFFICIENT TO COVER THE COMMISSION'S ANNUAL BUDGET. 26 (C) THE COMMISSION'S BUDGET FOR A FISCAL YEAR SHALL NOT BE APPROVED 27 UNTIL IT HAS BEEN SUBJECT TO NOTICE AND COMMENT AS SET FORTH IN SECTION 28 EIGHT THOUSAND EIGHT HUNDRED EIGHT OF THIS ARTICLE. 29 (D) THE COMMISSION SHALL BE EXEMPT FROM ALL TAXATION IN AND BY THE 30 COMPACTING STATES. 31 (E) THE COMMISSION SHALL NOT PLEDGE THE CREDIT OF ANY COMPACTING 32 STATE, EXCEPT BY AND WITH THE APPROPRIATE LEGAL AUTHORITY OF THAT 33 COMPACTING STATE. 34 (F) THE COMMISSION SHALL KEEP COMPLETE AND ACCURATE ACCOUNTS OF ALL 35 ITS INTERNAL RECEIPTS, INCLUDING GRANTS AND DONATIONS AND DISBURSEMENTS 36 OF ALL FUNDS UNDER ITS CONTROL. THE INTERNAL FINANCIAL ACCOUNTS OF THE 37 COMMISSION SHALL BE SUBJECT TO THE ACCOUNTING PROCEDURES ESTABLISHED 38 UNDER ITS BY-LAWS. THE FINANCIAL ACCOUNTS AND REPORTS INCLUDING THE 39 SYSTEM OF INTERNAL CONTROLS AND PROCEDURES OF THE COMMISSION SHALL BE 40 AUDITED ANNUALLY BY AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT. UPON THE 41 DETERMINATION OF THE COMMISSION, BUT NO LESS FREQUENTLY THAN EVERY THREE 42 YEARS, THE REVIEW OF SUCH INDEPENDENT AUDITOR SHALL INCLUDE A MANAGEMENT 43 AND PERFORMANCE AUDIT OF THE COMMISSION. THE COMMISSION SHALL MAKE AN 44 ANNUAL REPORT TO THE GOVERNOR AND LEGISLATURE OF THE COMPACTING STATES, 45 WHICH SHALL INCLUDE A REPORT OF SUCH INDEPENDENT AUDIT. THE COMMISSION'S 46 INTERNAL ACCOUNTS SHALL NOT BE CONFIDENTIAL AND SUCH MATERIALS MAY BE 47 SHARED WITH THE COMMISSIONER OF ANY COMPACTING STATE UPON REQUEST, 48 PROVIDED, HOWEVER, THAT ANY WORK PAPERS RELATED TO ANY INTERNAL OR INDE- 49 PENDENT AUDIT AND ANY INFORMATION REGARDING THE PRIVACY OF INDIVIDUALS 50 AND INSURERS' PROPRIETARY INFORMATION, INCLUDING TRADE SECRETS, SHALL 51 REMAIN CONFIDENTIAL. 52 (G) NO COMPACTING STATE SHALL HAVE ANY CLAIM TO OR OWNERSHIP OF ANY 53 PROPERTY HELD BY OR VESTED IN THE COMMISSION OR TO ANY COMMISSION FUNDS 54 HELD PURSUANT TO THE PROVISIONS OF THIS COMPACT. 55 S 8814. COMPACTING STATES, EFFECTIVE DATE AND AMENDMENT. (A) ANY STATE 56 IS ELIGIBLE TO BECOME A COMPACTING STATE. S. 3057 13 1 (B) THE COMPACT SHALL BECOME EFFECTIVE AND BINDING UPON LEGISLATIVE 2 ENACTMENT OF THE COMPACT INTO LAW BY TWO COMPACTING STATES; PROVIDED 3 HOWEVER, THAT THE COMMISSION SHALL BECOME EFFECTIVE FOR PURPOSES OF 4 ADOPTING UNIFORM STANDARDS FOR REVIEWING, AND GIVING APPROVAL OR DISAP- 5 PROVAL OF, PRODUCTS FILED WITH THE COMMISSION THAT SATISFY APPLICABLE 6 UNIFORM STANDARDS ONLY AFTER TWENTY-SIX STATES ARE COMPACTING STATES OR, 7 ALTERNATIVELY, BY STATES REPRESENTING GREATER THAN FORTY PERCENT OF THE 8 PREMIUM VOLUME FOR LIFE INSURANCE, ANNUITY, DISABILITY INCOME AND LONG- 9 TERM CARE INSURANCE PRODUCTS, BASED ON RECORDS OF THE NAIC FOR THE PRIOR 10 YEAR. THEREAFTER, IT SHALL BECOME EFFECTIVE AND BINDING AS TO ANY OTHER 11 COMPACTING STATE UPON ENACTMENT OF THE COMPACT INTO LAW BY THAT STATE. 12 (C) AMENDMENTS TO THE COMPACT MAY BE PROPOSED BY THE COMMISSION FOR 13 ENACTMENT BY THE COMPACTING STATES. NO AMENDMENT SHALL BECOME EFFECTIVE 14 AND BINDING UPON THE COMMISSION AND THE COMPACTING STATES UNLESS AND 15 UNTIL ALL COMPACTING STATES ENACT THE AMENDMENT INTO LAW. 16 S 8815. WITHDRAWAL, DEFAULT AND TERMINATION. (A)(1) ONCE EFFECTIVE, 17 THE COMPACT SHALL CONTINUE IN FORCE AND REMAIN BINDING UPON EACH AND 18 EVERY COMPACTING STATE; PROVIDED THAT A COMPACTING STATE MAY WITHDRAW 19 FROM THE COMPACT ("WITHDRAWING STATE") BY ENACTING A STATUTE SPECIF- 20 ICALLY REPEALING THE STATUTE WHICH ENACTED THE COMPACT INTO LAW. 21 (2) THE EFFECTIVE DATE OF WITHDRAWAL IS THE EFFECTIVE DATE OF THE 22 REPEALING STATUTE. HOWEVER, THE WITHDRAWAL SHALL NOT APPLY TO ANY PROD- 23 UCT FILINGS APPROVED OR SELF-CERTIFIED, OR ANY ADVERTISEMENT OF SUCH 24 PRODUCTS, ON THE DATE THE REPEALING STATUTE BECOMES EFFECTIVE, EXCEPT BY 25 MUTUAL AGREEMENT OF THE COMMISSION AND THE WITHDRAWING STATE UNLESS THE 26 APPROVAL IS RESCINDED BY THE WITHDRAWING STATE AS PROVIDED IN PARAGRAPH 27 FIVE OF THIS SUBSECTION. 28 (3) THE COMMISSIONER OF THE WITHDRAWING STATE SHALL IMMEDIATELY NOTIFY 29 THE MANAGEMENT COMMITTEE IN WRITING UPON THE INTRODUCTION OF LEGISLATION 30 REPEALING THIS COMPACT IN THE WITHDRAWING STATE. 31 (4) THE COMMISSION SHALL NOTIFY THE OTHER COMPACTING STATES OF THE 32 INTRODUCTION OF SUCH LEGISLATION WITHIN TEN DAYS AFTER ITS RECEIPT OF 33 NOTICE THEREOF. 34 (5) THE WITHDRAWING STATE IS RESPONSIBLE FOR ALL OBLIGATIONS, DUTIES 35 AND LIABILITIES INCURRED THROUGH THE EFFECTIVE DATE OF WITHDRAWAL, 36 INCLUDING ANY OBLIGATIONS, THE PERFORMANCE OF WHICH EXTEND BEYOND THE 37 EFFECTIVE DATE OF WITHDRAWAL, EXCEPT TO THE EXTENT THOSE OBLIGATIONS MAY 38 HAVE BEEN RELEASED OR RELINQUISHED BY MUTUAL AGREEMENT OF THE COMMISSION 39 AND THE WITHDRAWING STATE. THE COMMISSION'S APPROVAL OF PRODUCTS AND 40 ADVERTISEMENT PRIOR TO THE EFFECTIVE DATE OF WITHDRAWAL SHALL CONTINUE 41 TO BE EFFECTIVE AND BE GIVEN FULL FORCE AND EFFECT IN THE WITHDRAWING 42 STATE, UNLESS FORMALLY RESCINDED BY THE WITHDRAWING STATE IN THE SAME 43 MANNER AS PROVIDED BY THE LAWS OF THE WITHDRAWING STATE FOR THE PROSPEC- 44 TIVE DISAPPROVAL OF PRODUCTS OR ADVERTISEMENT PREVIOUSLY APPROVED UNDER 45 STATE LAW. 46 (6) REINSTATEMENT FOLLOWING WITHDRAWAL OF ANY COMPACTING STATE SHALL 47 OCCUR UPON THE EFFECTIVE DATE OF THE WITHDRAWING STATE'S LEGISLATION 48 REENACTING THE COMPACT. 49 (B) (1) IF THE COMMISSION DETERMINES THAT ANY COMPACTING STATE HAS AT 50 ANY TIME DEFAULTED ("DEFAULTING STATE") IN THE PERFORMANCE OF ANY OF ITS 51 OBLIGATIONS OR RESPONSIBILITIES UNDER THIS COMPACT, THE BY-LAWS OR DULY 52 PROMULGATED RULES OR OPERATING PROCEDURES, THEN, AFTER NOTICE AND HEAR- 53 ING AS SET FORTH IN THE BY-LAWS, ALL RIGHTS, PRIVILEGES AND BENEFITS 54 CONFERRED BY THE COMPACT ON THE DEFAULTING STATE SHALL BE SUSPENDED FROM 55 THE EFFECTIVE DATE OF DEFAULT AS FIXED BY THE COMMISSION. THE GROUNDS 56 FOR DEFAULT INCLUDE, BUT ARE NOT LIMITED TO, FAILURE OF A COMPACTING S. 3057 14 1 STATE TO PERFORM ITS OBLIGATIONS OR RESPONSIBILITIES, AND ANY OTHER 2 GROUNDS DESIGNATED IN COMMISSION RULES. THE COMMISSION SHALL IMMEDIATELY 3 NOTIFY THE DEFAULTING STATE IN WRITING OF THE DEFAULTING STATE'S SUSPEN- 4 SION PENDING A CURE OF THE DEFAULT. THE COMMISSION SHALL STIPULATE THE 5 CONDITIONS AND THE TIME PERIOD WITHIN WHICH THE DEFAULTING STATE MUST 6 CURE ITS DEFAULT. IF THE DEFAULTING STATE FAILS TO CURE THE DEFAULT 7 WITHIN THE TIME PERIOD SPECIFIED BY THE COMMISSION, THE DEFAULTING STATE 8 SHALL BE TERMINATED FROM THE COMPACT AND ALL RIGHTS, PRIVILEGES AND 9 BENEFITS CONFERRED BY THE COMPACT SHALL BE TERMINATED FROM THE EFFECTIVE 10 DATE OF TERMINATION. 11 (2) PRODUCT APPROVALS BY THE COMMISSION OR PRODUCT SELF-CERTIFICA- 12 TIONS, OR ANY ADVERTISEMENT IN CONNECTION WITH SUCH PRODUCT, THAT ARE IN 13 FORCE ON THE EFFECTIVE DATE OF TERMINATION SHALL REMAIN IN FORCE IN THE 14 DEFAULTING STATE IN THE SAME MANNER AS IF THE DEFAULTING STATE HAD WITH- 15 DRAWN VOLUNTARILY UNDER THIS SECTION. 16 (3) REINSTATEMENT FOLLOWING TERMINATION OF ANY COMPACTING STATE 17 REQUIRES A REENACTMENT OF THE COMPACT BY THAT STATE. 18 (C)(1) THE COMPACT DISSOLVES EFFECTIVE UPON THE DATE OF THE WITHDRAWAL 19 OR DEFAULT OF THE COMPACTING STATE WHICH REDUCES MEMBERSHIP IN THE 20 COMPACT TO ONE COMPACTING STATE. 21 (2) UPON THE DISSOLUTION OF THE COMPACT, THE COMPACT BECOMES NULL AND 22 VOID AND SHALL BE OF NO FURTHER FORCE OR EFFECT, AND THE BUSINESS AND 23 AFFAIRS OF THE COMMISSION SHALL BE WOUND UP AND ANY SURPLUS FUNDS SHALL 24 BE DISTRIBUTED IN ACCORDANCE WITH THE BY-LAWS. 25 S 8816. SEVERABILITY AND CONSTRUCTION. (A) THE PROVISIONS OF THE 26 COMPACT SHALL BE SEVERABLE; AND IF ANY PHRASE, CLAUSE, SENTENCE OR 27 PROVISION IS DEEMED UNENFORCEABLE, THE REMAINING PROVISIONS OF THE 28 COMPACT SHALL BE ENFORCEABLE. 29 (B) THE PROVISIONS OF THE COMPACT SHALL BE LIBERALLY CONSTRUED TO 30 EFFECTUATE ITS PURPOSES. 31 S 8817. BINDING EFFECT OF COMPACT AND OTHER LAWS. (A) NOTHING IN THIS 32 SECTION PREVENTS THE ENFORCEMENT OF ANY OTHER LAW OF A COMPACTING STATE, 33 EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION. 34 (B) FOR ANY PRODUCT APPROVED OR CERTIFIED TO THE COMMISSION, THE 35 RULES, UNIFORM STANDARDS AND ANY OTHER REQUIREMENTS OF THE COMMISSION 36 SHALL CONSTITUTE THE EXCLUSIVE PROVISIONS APPLICABLE TO THE CONTENT, 37 APPROVAL AND CERTIFICATION OF SUCH PRODUCTS. FOR ADVERTISEMENT THAT IS 38 SUBJECT TO THE COMMISSION'S AUTHORITY, ANY RULE, UNIFORM STANDARD OR 39 OTHER REQUIREMENT OF THE COMMISSION WHICH GOVERNS THE CONTENT OF THE 40 ADVERTISEMENT SHALL CONSTITUTE THE EXCLUSIVE PROVISION THAT A COMMIS- 41 SIONER MAY APPLY TO THE CONTENT OF THE ADVERTISEMENT. NOTWITHSTANDING 42 THE FOREGOING, NO ACTION TAKEN BY THE COMMISSION SHALL ABROGATE OR 43 RESTRICT: 44 (1) THE ACCESS OF ANY PERSON TO STATE COURTS; 45 (2) REMEDIES AVAILABLE UNDER STATE LAW RELATED TO BREACH OF CONTRACT, 46 TORT OR OTHER LAWS NOT SPECIFICALLY DIRECTED TO THE CONTENT OF THE PROD- 47 UCT; 48 (3) STATE LAW RELATING TO THE CONSTRUCTION OF INSURANCE CONTRACTS; OR 49 (4) THE AUTHORITY OF THE ATTORNEY GENERAL OF THE STATE INCLUDING, BUT 50 NOT LIMITED TO, MAINTAINING ANY ACTIONS OR PROCEEDINGS AS AUTHORIZED BY 51 LAW. 52 (C) ALL INSURANCE PRODUCTS FILED WITH INDIVIDUAL STATES SHALL BE 53 SUBJECT TO THE LAWS OF THOSE STATES. 54 (D) ALL LAWFUL ACTIONS OF THE COMMISSION, INCLUDING ALL RULES AND 55 OPERATING PROCEDURES PROMULGATED BY THE COMMISSION, ARE BINDING UPON THE 56 COMPACTING STATES. S. 3057 15 1 (E) ALL AGREEMENTS BETWEEN THE COMMISSION AND THE COMPACTING STATES 2 ARE BINDING IN ACCORDANCE WITH THEIR TERMS. 3 (F) UPON THE REQUEST OF A PARTY TO A CONFLICT OVER THE MEANING OR 4 INTERPRETATION OF COMMISSION ACTIONS, AND UPON A MAJORITY VOTE OF THE 5 COMPACTING STATES, THE COMMISSION MAY ISSUE ADVISORY OPINIONS REGARDING 6 THE DISPUTED MEANING OR INTERPRETATION. 7 (G) IN THE EVENT ANY PROVISION OF THIS ARTICLE EXCEEDS THE CONSTITU- 8 TIONAL LIMITS IMPOSED ON THE LEGISLATURE OF ANY COMPACTING STATE, THE 9 OBLIGATIONS, DUTIES, POWERS OR JURISDICTION SOUGHT TO BE CONFERRED BY 10 THAT PROVISION UPON THE COMMISSION SHALL BE INEFFECTIVE AS TO SUCH 11 COMPACTING STATE, AND SUCH OBLIGATIONS, DUTIES, POWERS OR JURISDICTION 12 SHALL REMAIN IN THE COMPACTING STATE AND SHALL BE EXERCISED BY THE AGEN- 13 CY THEREOF TO WHICH SUCH OBLIGATIONS, DUTIES, POWERS OR JURISDICTION ARE 14 DELEGATED BY LAW IN EFFECT AT THE TIME THE COMPACT BECOMES EFFECTIVE. 15 S 3. This act shall take effect January 1, 2012 and shall expire and 16 be deemed repealed December 31, 2014; provided, however, that any policy 17 or contract issued during the period that the provisions of this act are 18 in effect that has been approved in accordance with the provisions of 19 this act shall continue in full force and effect.