{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/38.2-6200.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/38.2-6200.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/38.2-6200.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/38.2-6200.html"}],"law_id":362938,"edition_id":2,"section_id":362938,"structure_id":51806,"section_number":"38.2-6200","catch_line":"Form of Compact","history":"2004, c. 761.","full_text":"The General Assembly hereby enacts, and the Commonwealth of Virginia hereby enters into, the Interstate Insurance Product Regulation Compact with any and all states legally joining therein according to its terms, in the form substantially as follows:\n\n\t\tArticle I.\n\n\t\tPurposes.\n\n\t\tThe purposes of this Compact are, through means of joint and cooperative action among the Compacting States:\n\n1\n\nTo promote and protect the interest of consumers of individual and group annuity, life insurance, disability income and long-term care insurance products;\n\n2\n\nTo develop uniform standards for insurance products covered under the Compact;\n\n3\n\nTo establish a central clearinghouse to receive and provide prompt review of insurance products covered under the Compact and, in certain cases, advertisements related thereto, submitted by insurers authorized to do business in one or more Compacting States;\n\n4\n\nTo give appropriate regulatory approval to those product filings and advertisements satisfying the applicable uniform standard;\n\n5\n\nTo improve coordination of regulatory resources and expertise between state insurance departments regarding the setting of uniform standards and review of insurance products covered under the Compact;\n\n6\n\nTo create the Interstate Insurance Product Regulation Commission; and\n\n7\n\nTo perform these and such other related functions as may be consistent with the state regulation of the business of insurance.\n\t\t\tArticle II.\n\n\t\t\tDefinitions.\n\n\t\t\tFor purposes of this Compact:\n\n1\n\n“Advertisement” means any material designed to create public interest in a Product, or induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replace, or retain a policy, as more specifically defined in the Rules and Operating Procedures of the Commission.\n\n2\n\n“Bylaws” mean those bylaws established by the Commission for its governance, or for directing or controlling the Commission’s actions or conduct.\n\n3\n\n“Compacting State” means any State which has enacted this Compact legislation and which has not withdrawn pursuant to Article XIV, Section 1, or been terminated pursuant to Article XIV, Section 2.\n\n4\n\n“Commission” means the “Interstate Insurance Product Regulation Commission” established by this Compact.\n\n5\n\n“Commissioner” means the chief insurance regulatory official of a State including, but not limited to, commissioner, superintendent, director, or administrator.\n\n6\n\n“Domiciliary State” means the state in which an Insurer is incorporated or organized; or, in the case of an alien Insurer, its state of entry.\n\n7\n\n“Insurer” means any entity licensed by a State to issue contracts of insurance for any of the lines of insurance covered by this Act.\n\n8\n\n“Member” means the person chosen by a Compacting State as its representative to the Commission, or his or her designee.\n\n9\n\n“Non-compacting State” means any State which is not at the time a Compacting State.\n\n10\n\n“Operating Procedures” mean procedures promulgated by the Commission implementing a Rule, Uniform Standard or a provision of this Compact.\n\n11\n\n“Product” means the form of a policy or contract, including any application, endorsement, or related form which is attached to and made a part of the policy or contract, and any evidence of coverage or certificate, for an individual or group annuity, life insurance, disability income or long-term care insurance product that an Insurer is authorized to issue.\n\n12\n\n“Rule” means a statement of general or particular applicability and future effect promulgated by the Commission, including a Uniform Standard developed pursuant to Article VII of this Compact, designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of the Commission, which shall have the force and effect of law in the Compacting States.\n\n13\n\n“State” means any state, district or territory of the United States of America.\n\n14\n\n“Third-Party Filer” means an entity that submits a Product filing to the Commission on behalf of an Insurer.\n\n15\n\n“Uniform Standard” means a standard adopted by the Commission for a Product line, pursuant to Article VII of this Compact, and shall include all of the Product requirements in aggregate; provided, that each Uniform Standard shall be construed, whether express or implied, to prohibit the use of any inconsistent, misleading or ambiguous provisions in a Product and the form of the Product made available to the public shall not be unfair, inequitable or against public policy as determined by the Commission.\n\t\t\tArticle III.\n\n\t\t\tEstablishment of the Commission and Venue.\n\n1\n\nThe Compacting States hereby create and establish a joint public agency known as the “Interstate Insurance Product Regulation Commission.” Pursuant to Article IV, the Commission will have the power to develop Uniform Standards for Product lines, receive and provide prompt review of Products filed therewith, and give approval to those Product filings satisfying applicable Uniform Standards; provided, it is not intended for the Commission to be the exclusive entity for receipt and review of insurance product filings. Nothing herein shall prohibit any Insurer from filing its product in any State wherein the Insurer is licensed to conduct the business of insurance; and any such filing shall be subject to the laws of the State where filed.\n\n2\n\nThe Commission is a body corporate and politic, and an instrumentality of the Compacting States.\n\n3\n\nThe Commission is solely responsible for its liabilities except as otherwise specifically provided in this Compact.\n\n4\n\nVenue is proper and judicial proceedings by or against the Commission shall be brought solely and exclusively in a court of competent jurisdiction where the principal office of the Commission is located.\n\t\t\tArticle IV.\n\n\t\t\tPowers of the Commission.\n\n\t\t\tThe Commission shall have the following powers:\n\n1\n\nTo promulgate Rules, pursuant to Article VII of this Compact, which shall have the force and effect of law and shall be binding in the Compacting States to the extent and in the manner provided in this Compact;\n\n2\n\nTo exercise its rule-making authority and establish reasonable Uniform Standards for Products covered under the Compact, and Advertisement related thereto, which shall have the force and effect of law and shall be binding in the Compacting States, but only for those Products filed with the Commission, provided, that a Compacting State shall have the right to opt out of such Uniform Standard pursuant to Article VII, to the extent and in the manner provided in this Compact, and, provided further, that any Uniform Standard established by the Commission for long-term care insurance products may provide the same or greater protections for consumers as, but shall not provide less than, those protections set forth in the National Association of Insurance Commissioners’ Long-Term Care Insurance Model Act and Long-Term Care Insurance Model Regulation, respectively, adopted as of 2001. The Commission shall consider whether any subsequent amendments to the NAIC Long-Term Care Insurance Model Act or Long-Term Care Insurance Model Regulation adopted by the NAIC require amending of the Uniform Standards established by the Commission for long-term care insurance products;\n\n3\n\nTo receive and review in an expeditious manner Products filed with the Commission, and rate filings for disability income and long-term care insurance Products, and give approval of those Products and rate filings that satisfy the applicable Uniform Standard, where such approval shall have the force and effect of law and be binding on the Compacting States to the extent and in the manner provided in the Compact;\n\n4\n\nTo receive and review in an expeditious manner Advertisement relating to long-term care insurance products for which Uniform Standards have been adopted by the Commission, and give approval to all Advertisement that satisfies the applicable Uniform Standard. For any product covered under this Compact, other than long-term care insurance products, the Commission shall have the authority to require an insurer to submit all or any part of its Advertisement with respect to that product for review or approval prior to use, if the Commission determines that the nature of the product is such that an Advertisement of the product could have the capacity or tendency to mislead the public. The actions of Commission as provided in this section shall have the force and effect of law and shall be binding in the Compacting States to the extent and in the manner provided in the Compact;\n\n5\n\nTo exercise its rule-making authority and designate Products and Advertisement that may be subject to a self-certification process without the need for prior approval by the Commission;\n\n6\n\nTo promulgate Operating Procedures, pursuant to Article VII of this Compact, which shall be binding in the Compacting States to the extent and in the manner provided in this Compact;\n\n7\n\nTo bring and prosecute legal proceedings or actions in its name as the Commission; provided, that the standing of any state insurance department to sue or be sued under applicable law shall not be affected;\n\n8\n\nTo issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence;\n\n9\n\nTo establish and maintain offices;\n\n10\n\nTo purchase and maintain insurance and bonds;\n\n11\n\nTo borrow, accept or contract for services of personnel, including, but not limited to, employees of a Compacting State;\n\n12\n\nTo hire employees, professionals or specialists, and elect or appoint officers, and to fix their compensation, define their duties and give them appropriate authority to carry out the purposes of the Compact, and determine their qualifications; and to establish the Commission’s personnel policies and programs relating to, among other things, conflicts of interest, rates of compensation and qualifications of personnel;\n\n13\n\nTo accept any and all appropriate donations and grants of money, equipment, supplies, materials and services, and to receive, utilize and dispose of the same; provided that at all times the Commission shall strive to avoid any appearance of impropriety;\n\n14\n\nTo lease, purchase, accept appropriate gifts or donations of, or otherwise to own, hold, improve or use, any property, real, personal or mixed; provided that at all times the Commission shall strive to avoid any appearance of impropriety;\n\n15\n\nTo sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of any property, real, personal or mixed;\n\n16\n\nTo remit filing fees to Compacting States as may be set forth in the Bylaws, Rules or Operating Procedures;\n\n17\n\nTo enforce compliance by Compacting States with Rules, Uniform Standards, Operating Procedures and Bylaws;\n\n18\n\nTo provide for dispute resolution among Compacting States;\n\n19\n\nTo advise Compacting States on issues relating to Insurers domiciled or doing business in Non-compacting jurisdictions, consistent with the purposes of this Compact;\n\n20\n\nTo provide advice and training to those personnel in state insurance departments responsible for product review, and to be a resource for state insurance departments;\n\n21\n\nTo establish a budget and make expenditures;\n\n22\n\nTo borrow money;\n\n23\n\nTo appoint committees, including advisory committees comprising Members, state insurance regulators, state legislators or their representatives, insurance industry and consumer representatives, and such other interested persons as may be designated in the Bylaws;\n\n24\n\nTo provide and receive information from, and to cooperate with, law-enforcement agencies;\n\n25\n\nTo adopt and use a corporate seal; and\n\n26\n\nTo perform such other functions as may be necessary or appropriate to achieve the purposes of this Compact consistent with the state regulation of the business of insurance.\n\t\t\tArticle V.\n\n\t\t\tOrganization of the Commission.\n\n1\n\nMembership, Voting and Bylaws.\n\t\t\ta. Each Compacting State shall have and be limited to one Member. Each Member shall be qualified to serve in that capacity pursuant to applicable law of the Compacting State. Any Member may be removed or suspended from office as provided by the law of the State from which he or she shall be appointed. Any vacancy occurring in the Commission shall be filled in accordance with the laws of the Compacting State wherein the vacancy exists. Nothing herein shall be construed to affect the manner in which a Compacting State determines the election or appointment and qualification of its own Commissioner.\n\n\t\t\tb. Each Member shall be entitled to one vote and shall have an opportunity to participate in the governance of the Commission in accordance with the Bylaws. Notwithstanding any provision herein to the contrary, no action of the Commission with respect to the promulgation of a Uniform Standard shall be effective unless two-thirds of the Members vote in favor thereof.\n\n\t\t\tc. The Commission shall, by a majority of the Members, prescribe Bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes, and exercise the powers, of the Compact, including, but not limited to:\n\n\t\t\ti. Establishing the fiscal year of the Commission;\n\n\t\t\tii. Providing reasonable procedures for appointing and electing members, as well as holding meetings, of the Management Committee;\n\n\t\t\tiii. Providing reasonable standards and procedures: (i) for the establishment and meetings of other committees, and (ii) governing any general or specific delegation of any authority or function of the Commission;\n\n\t\t\tiv. Providing reasonable procedures for calling and conducting meetings of the Commission that consists of a majority of Commission members, ensuring reasonable advance notice of each such meeting, and providing for the right of citizens to attend each such meeting with enumerated exceptions designed to protect the public’s interest, the privacy of individuals, and insurers’ proprietary information, including trade secrets. The Commission may meet in camera only after a majority of the entire membership votes to close a meeting en toto or in part. As soon as practicable, the Commission must make public (i) a copy of the vote to close the meeting revealing the vote of each Member with no proxy votes allowed, and (ii) votes taken during such meeting;\n\n\t\t\tv. Establishing the titles, duties and authority and reasonable procedures for the election of the officers of the Commission;\n\n\t\t\tvi. Providing reasonable standards and procedures for the establishment of the personnel policies and programs of the Commission. Notwithstanding any civil service or other similar laws of any Compacting State, the Bylaws shall exclusively govern the personnel policies and programs of the Commission;\n\n\t\t\tvii. Promulgating a code of ethics to address permissible and prohibited activities of Commission members and employees; and\n\n\t\t\tviii. Providing a mechanism for winding up the operations of the Commission and the equitable disposition of any surplus funds that may exist after the termination of the Compact after the payment and\/or reserving of all of its debts and obligations.\n\n\t\t\td. The Commission shall publish its Bylaws in a convenient form and file a copy thereof and a copy of any amendment thereto, with the appropriate agency or officer in each of the Compacting States.\n\n2\n\nManagement Committee, Officers and Personnel.\n\t\t\ta. A Management Committee comprising no more than 14 members shall be established as follows:\n\n\t\t\ti. One member from each of the six Compacting States with the largest premium volume for individual and group annuities, life, disability income, and long-term care insurance products, determined from the records of the NAIC for the prior year;\n\n\t\t\tii. Four members from those Compacting States with at least two percent of the market based on the premium volume described above, other than the six Compacting States with the largest premium volume, selected on a rotating basis as provided in the Bylaws; and\n\n\t\t\tiii. Four members from those Compacting States with less than two percent of the market, based on the premium volume described above, with one selected from each of the four zone regions of the NAIC as provided in the Bylaws.\n\n\t\t\tb. The Management Committee shall have such authority and duties as may be set forth in the Bylaws, including but not limited to:\n\n\t\t\ti. Managing the affairs of the Commission in a manner consistent with the Bylaws and purposes of the Commission;\n\n\t\t\tii. Establishing and overseeing an organizational structure within, and appropriate procedures for, the Commission to provide for the creation of Uniform Standards and other Rules, receipt and review of product filings, administrative and technical support functions, review of decisions regarding the disapproval of a product filing, and the review of elections made by a Compacting State to opt out of a Uniform Standard; provided that a Uniform Standard shall not be submitted to the Compacting States for adoption unless approved by two-thirds of the members of the Management Committee;\n\n\t\t\tiii. Overseeing the offices of the Commission; and\n\n\t\t\tiv. Planning, implementing, and coordinating communications and activities with other state, federal and local government organizations in order to advance the goals of the Commission.\n\n\t\t\tc. The Commission shall elect annually officers from the Management Committee, with each having such authority and duties as may be specified in the Bylaws.\n\n\t\t\td. The Management Committee may, subject to the approval of the Commission, appoint or retain an executive director for such period, upon such terms and conditions and for such compensation as the Commission may deem appropriate. The executive director shall serve as secretary to the Commission, but shall not be a Member of the Commission. The executive director shall hire and supervise such other staff as may be authorized by the Commission.\n\n3\n\nLegislative and Advisory Committees.\n\t\t\ta. A legislative committee comprising state legislators or their designees shall be established to monitor the operations of, and make recommendations to, the Commission, including the Management Committee; provided that the manner of selection and term of any legislative committee member shall be as set forth in the Bylaws. Prior to the adoption by the Commission of any Uniform Standard, revision to the Bylaws, annual budget, or other significant matter as may be provided in the Bylaws, the Management Committee shall consult with and report to the legislative committee.\n\n\t\t\tb. The Commission shall establish two advisory committees, one of which shall comprise consumer representatives independent of the insurance industry, and the other comprising insurance industry representatives.\n\n\t\t\tc. The Commission may establish additional advisory committees as its Bylaws may provide for the carrying out of its functions.\n\n4\n\nCorporate Records of the Commission.\n\t\t\tThe Commission shall maintain its corporate books and records in accordance with the Bylaws.\n\n5\n\nQualified Immunity, Defense and Indemnification.\n\t\t\ta. The Members, officers, executive director, employees and representatives of the Commission shall be immune from suit and liability, either personally or in their official capacity, for any claim for damage to or loss of property or personal injury or other civil liability caused by or arising out of any actual or alleged act, error or omission that occurred, or that the person against whom the claim is made had a reasonable basis for believing occurred within the scope of Commission employment, duties or responsibilities; provided, that nothing in this paragraph shall be construed to protect any such person from suit and\/or liability for any damage, loss, injury or liability caused by the intentional or willful and wanton misconduct of that person.\n\n\t\t\tb. The Commission shall defend any Member, officer, executive director, employee or representative of the Commission in any civil action seeking to impose liability arising out of any actual or alleged act, error or omission that occurred within the scope of Commission employment, duties or responsibilities, or that the person against whom the claim is made had a reasonable basis for believing occurred within the scope of Commission employment, duties or responsibilities; provided, that nothing herein shall be construed to prohibit that person from retaining his or her own counsel; and provided further, that the actual or alleged act, error or omission did not result from that person’s intentional or willful and wanton misconduct.\n\n\t\t\tc. The Commission shall indemnify and hold harmless any Member, officer, executive director, employee or representative of the Commission for the amount of any settlement or judgment obtained against that person arising out of any actual or alleged act, error or omission that occurred within the scope of Commission employment, duties or responsibilities; or that such person had a reasonable basis for believing occurred within the scope of Commission employment, duties or responsibilities, provided, that the actual or alleged act, error or omission did not result from the intentional or willful and wanton misconduct of that person.\n\n\t\t\tArticle VI.\n\n\t\t\tMeetings and Acts of the Commission.\n\n1\n\nThe Commission shall meet and take such actions as are consistent with the provisions of this Compact and the Bylaws.\n\n2\n\nEach Member of the Commission shall have the right and power to cast a vote to which that Compacting State is entitled and to participate in the business and affairs of the Commission. A Member shall vote in person or by such other means as provided in the Bylaws. The Bylaws may provide for Members’ participation in meetings by telephone or other means of communication.\n\n3\n\nThe Commission shall meet at least once during each calendar year. Additional meetings shall be held as set forth in the Bylaws.\n\t\t\tArticle VII.\n\n\t\t\tRules and Operating Procedures: Rulemaking Functions of the Commission and Opting Out of Uniform Standards.\n\n1\n\nRulemaking Authority. The Commission shall promulgate reasonable Rules, including Uniform Standards, and Operating Procedures in order to effectively and efficiently achieve the purposes of this Compact. Notwithstanding the foregoing, in the event the Commission exercises its rulemaking authority in a manner that is beyond the scope of the purposes of this Act, or the powers granted hereunder, then such an action by the Commission shall be invalid and have no force and effect.\n\n2\n\nRulemaking Procedure. Rules and Operating Procedures shall be made pursuant to a rulemaking process that conforms to the Model State Administrative Procedure Act of 1981, as amended, as may be appropriate to the operations of the Commission. Before the Commission adopts a Uniform Standard, the Commission shall give written notice to the relevant state legislative committee(s) in each Compacting State responsible for insurance issues of its intention to adopt the Uniform Standard. The Commission in adopting a Uniform Standard shall consider fully all submitted materials and issue a concise explanation of its decision.\n\n3\n\nEffective Date and Opt Out of a Uniform Standard. A Uniform Standard shall become effective 90 days after its promulgation by the Commission or such later date as the Commission may determine; provided, however, that a Compacting State may opt out of a Uniform Standard as provided in this Article. “Opt out” shall be defined as any action by a Compacting State to decline to adopt or participate in a promulgated Uniform Standard. All other Rules and Operating Procedures, and amendments thereto, shall become effective as of the date specified in each Rule, Operating Procedure or amendment.\n\n4\n\nOpt Out Procedure. A Compacting State may opt out of a Uniform Standard, either by legislation or regulation duly promulgated by the Insurance Department under the Compacting State’s Administrative Procedure Act or duly promulgated pursuant to the Compacting State’s law. If a Compacting State elects to opt out of a Uniform Standard by regulation, it must (a) give written notice to the Commission no later than 10 business days after the Uniform Standard is promulgated, or at the time the State becomes a Compacting State and (b) find that the Uniform Standard does not provide reasonable protections to the citizens of the State, given the conditions in the State. The Commissioner or tribunal shall make specific findings of fact and conclusions of law, based on a preponderance of the evidence, detailing the conditions in the State which warrant a departure from the Uniform Standard and determining that the Uniform Standard would not reasonably protect the citizens of the State. The Commissioner or tribunal must consider and balance the following factors and find that the conditions in the State and needs of the citizens of the State outweigh: (i) the intent of the legislature to participate in, and the benefits of, an interstate agreement to establish national uniform consumer protections for the Products subject to this Act; and (ii) the presumption that a Uniform Standard adopted by the Commission provides reasonable protections to consumers of the relevant Product.\n\t\t\tNotwithstanding the foregoing, a Compacting State may, at the time of its enactment of this Compact, prospectively opt out of all Uniform Standards involving long-term care insurance products by expressly providing for such opt out in the enacted Compact, and such an opt out shall not be treated as a material variance in the offer or acceptance of any State to participate in this Compact. Such an opt out shall be effective at the time of enactment of this Compact by the Compacting State and shall apply to all existing Uniform Standards involving long-term care insurance products and those subsequently promulgated.\n\n5\n\nEffect of Opt Out. If a Compacting State elects to opt out of a Uniform Standard, the Uniform Standard shall remain applicable in the Compacting State electing to opt out until such time the opt out legislation is enacted into law or the regulation opting out becomes effective.\n\t\t\tOnce the opt out of a Uniform Standard by a Compacting State becomes effective as provided under the laws of that State, the Uniform Standard shall have no further force and effect in that State unless and until the legislation or regulation implementing the opt out is repealed or otherwise becomes ineffective under the laws of the State. If a Compacting State opts out of a Uniform Standard after the Uniform Standard has been made effective in that State, the opt out shall have the same prospective effect as provided under Article XIV for withdrawals.\n\n6\n\nStay of Uniform Standard. If a Compacting State has formally initiated the process of opting out of a Uniform Standard by regulation, and while the regulatory opt out is pending, the Compacting State may petition the Commission, at least 15 days before the effective date of the Uniform Standard, to stay the effectiveness of the Uniform Standard in that State. The Commission may grant a stay if it determines the regulatory opt out is being pursued in a reasonable manner and there is a likelihood of success. If a stay is granted or extended by the Commission, the stay or extension thereof may postpone the effective date by up to 90 days, unless affirmatively extended by the Commission; provided, a stay may not be permitted to remain in effect for more than one year unless the Compacting State can show extraordinary circumstances which warrant a continuance of the stay, including, but not limited to, the existence of a legal challenge which prevents the Compacting State from opting out. A stay may be terminated by the Commission upon notice that the rulemaking process has been terminated.\n\n7\n\nNot later than 30 days after a Rule or Operating Procedure is promulgated, any person may file a petition for judicial review of the Rule or Operating Procedure; provided, that the filing of such a petition shall not stay or otherwise prevent the Rule or Operating Procedure from becoming effective unless the court finds that the petitioner has a substantial likelihood of success. The court shall give deference to the actions of the Commission consistent with applicable law and shall not find the Rule or Operating Procedure to be unlawful if the Rule or Operating Procedure represents a reasonable exercise of the Commission’s authority.\n\t\t\tArticle VIII.\n\n\t\t\tCommission Records and Enforcement.\n\n1\n\nThe Commission shall promulgate Rules establishing conditions and procedures for public inspection and copying of its information and official records, except such information and records involving the privacy of individuals and insurers’ trade secrets. The Commission may promulgate additional Rules under which it may make available to federal and state agencies, including law-enforcement agencies, records and information otherwise exempt from disclosure, and may enter into agreements with such agencies to receive or exchange information or records subject to nondisclosure and confidentiality provisions.\n\n2\n\nExcept as to privileged records, data and information, the laws of any Compacting State pertaining to confidentiality or nondisclosure shall not relieve any Compacting State Commissioner of the duty to disclose any relevant records, data, or information to the Commission; provided, that disclosure to the Commission shall not be deemed to waive or otherwise affect any confidentiality requirement; and further provided, that, except as otherwise expressly provided in this Act, the Commission shall not be subject to the Compacting State’s laws pertaining to confidentiality and nondisclosure with respect to records, data, and information in its possession. Confidential information of the Commission shall remain confidential after such information is provided to any Commissioner.\n\n3\n\nThe Commission shall monitor Compacting States for compliance with duly adopted Bylaws, Rules, including Uniform Standards, and Operating Procedures. The Commission shall notify any non-complying Compacting State in writing of its noncompliance with Commission Bylaws, Rules or Operating Procedures. If a noncomplying Compacting State fails to remedy its noncompliance within the time specified in the notice of noncompliance, the Compacting State shall be deemed to be in default as set forth in Article XIV.\n\n4\n\nThe Commissioner of any State in which an Insurer is authorized to do business, or is conducting the business of insurance, shall continue to exercise his or her authority to oversee the market regulation of the activities of the Insurer in accordance with the provisions of the State’s law. The Commissioner’s enforcement of compliance with the Compact is governed by the following provisions:\n\t\t\ta. With respect to the Commissioner’s market regulation of a Product or Advertisement that is approved or certified to the Commission, the content of the Product or Advertisement shall not constitute a violation of the provisions, standards or requirements of the Compact except upon a final order of the Commission, issued at the request of a Commissioner after prior notice to the Insurer and an opportunity for hearing before the Commission.\n\n\t\t\tb. Before a Commissioner may bring an action for violation of any provision, standard or requirement of the Compact relating to the content of an Advertisement not approved or certified to the Commission, the Commission, or an authorized Commission officer or employee, must authorize the action. However, authorization pursuant to this paragraph does not require notice to the Insurer, opportunity for hearing or disclosure of requests for authorization or records of the Commission’s action on such requests.\n\n\t\t\tArticle IX.\n\n\t\t\tDispute Resolution.\n\n\t\t\tThe Commission shall attempt, upon the request of a Member, to resolve any disputes or other issues that are subject to this Compact and which may arise between two or more Compacting States, or between Compacting States and Non-compacting States, and the Commission shall promulgate an Operating Procedure providing for resolution of such disputes.\n\n\t\t\tArticle X.\n\n\t\t\tProduct Filing and Approval.\n\n1\n\nInsurers and Third-Party Filers seeking to have a Product approved by the Commission shall file the Product with, and pay applicable filing fees to, the Commission. Nothing in this Act shall be construed to restrict or otherwise prevent an insurer from filing its Product with the insurance department in any State wherein the insurer is licensed to conduct the business of insurance, and such filing shall be subject to the laws of the States where filed.\n\n2\n\nThe Commission shall establish appropriate filing and review processes and procedures pursuant to Commission Rules and Operating Procedures. Notwithstanding any provision herein to the contrary, the Commission shall promulgate Rules to establish conditions and procedures under which the Commission will provide public access to Product filing information. In establishing such Rules, the Commission shall consider the interests of the public in having access to such information, as well as protection of personal medical and financial information and trade secrets, that may be contained in a Product filing or supporting information.\n\n3\n\nAny Product approved by the Commission may be sold or otherwise issued in those Compacting States for which the Insurer is legally authorized to do business.\n\t\t\tArticle XI.\n\n\t\t\tReview of Commission Decisions Regarding Filings.\n\n1\n\nNot later than 30 days after the Commission has given notice of a disapproved Product or Advertisement filed with the Commission, the Insurer or Third Party Filer whose filing was disapproved may appeal the determination to a review panel appointed by the Commission. The Commission shall promulgate Rules to establish procedures for appointing such review panels and provide for notice and hearing. An allegation that the Commission, in disapproving a Product or Advertisement filed with the Commission, acted arbitrarily, capriciously, or in a manner that is an abuse of discretion or otherwise not in accordance with the law, is subject to judicial review in accordance with Article III, section 4.\n\n2\n\nThe Commission shall have authority to monitor, review and reconsider Products and Advertisement subsequent to their filing or approval upon a finding that the Product does not meet the relevant Uniform Standard. Where appropriate, the Commission may withdraw or modify its approval after proper notice and hearing, subject to the appeal process in section 1 above.\n\t\t\tArticle XII.\n\n\t\t\tFinance.\n\n1\n\nThe Commission shall pay or provide for the payment of the reasonable expenses of its establishment and organization. To fund the cost of its initial operations, the Commission may accept contributions and other forms of funding from the National Association of Insurance Commissioners, Compacting States and other sources. Contributions and other forms of funding from other sources shall be of such a nature that the independence of the Commission concerning the performance of its duties shall not be compromised.\n\n2\n\nThe Commission shall collect a filing fee from each Insurer and Third Party Filer filing a Product with the Commission to cover the cost of the operations and activities of the Commission and its staff in a total amount sufficient to cover the Commission’s annual budget.\n\n3\n\nThe Commission’s budget for a fiscal year shall not be approved until it has been subject to notice and comment as set forth in Article VII of this Compact.\n\n4\n\nThe Commission shall be exempt from all taxation in and by the Compacting States.\n\n5\n\nThe Commission shall not pledge the credit of any Compacting State, except by and with the appropriate legal authority of that Compacting State.\n\n6\n\nThe Commission shall keep complete and accurate accounts of all its internal receipts, including grants and donations, and disbursements of all funds under its control. The internal financial accounts of the Commission shall be subject to the accounting procedures established under its Bylaws. The financial accounts and reports including the system of internal controls and procedures of the Commission shall be audited annually by an independent certified public accountant. Upon the determination of the Commission, but no less frequently than every three years, the review of the independent auditor shall include a management and performance audit of the Commission. The Commission shall make an Annual Report to the Governor and legislature of the Compacting States, which shall include a report of the independent audit. The Commission’s internal accounts shall not be confidential and such materials may be shared with the Commissioner of any Compacting State upon request; provided, however, that any work papers related to any internal or independent audit and any information regarding the privacy of individuals and insurers’ proprietary information, including trade secrets, shall remain confidential.\n\n7\n\nNo Compacting State shall have any claim to or ownership of any property held by or vested in the Commission or to any Commission funds held pursuant to the provisions of this Compact.\n\t\t\tArticle XIII.\n\n\t\t\tCompacting States, Effective Date and Amendment.\n\n1\n\nAny State is eligible to become a Compacting State.\n\n2\n\nThe Compact shall become effective and binding upon legislative enactment of the Compact into law by two Compacting States; provided, the Commission shall become effective for purposes of adopting Uniform Standards for, reviewing, and giving approval or disapproval of, Products filed with the Commission that satisfy applicable Uniform Standards only after 26 States are Compacting States or, alternatively, by States representing greater than 40 percent of the premium volume for life insurance, annuity, disability income, and long-term care insurance products, based on records of the NAIC for the prior year. Thereafter, it shall become effective and binding as to any other Compacting State upon enactment of the Compact into law by that State.\n\n3\n\nAmendments to the Compact may be proposed by the Commission for enactment by the Compacting States. No amendment shall become effective and binding upon the Commission and the Compacting States unless and until all Compacting States enact the amendment into law.\n\t\t\tArticle XIV.\n\n\t\t\tWithdrawal, Default and Termination.\n\n1\n\nWithdrawal.\n\t\t\ta. Once effective, the Compact shall continue in force and remain binding upon each and every Compacting State; provided, that a Compacting State may withdraw from the Compact (Withdrawing State) by enacting a statute specifically repealing the statute which enacted the Compact into law.\n\n\t\t\tb. The effective date of withdrawal is the effective date of the repealing statute. However, the withdrawal shall not apply to any Product filings approved or self-certified, or any Advertisement of such Products, on the date the repealing statute becomes effective, except by mutual agreement of the Commission and the Withdrawing State unless the approval is rescinded by the Withdrawing State as provided in subsection e of this section.\n\n\t\t\tc. The Commissioner of the Withdrawing State shall immediately notify the Management Committee in writing upon the introduction of legislation repealing this Compact in the Withdrawing State.\n\n\t\t\td. The Commission shall notify the other Compacting States of the introduction of such legislation within 10 days after its receipt of notice thereof.\n\n\t\t\te. The Withdrawing State is responsible for all obligations, duties and liabilities incurred through the effective date of withdrawal, including any obligations, the performance of which extend beyond the effective date of withdrawal, except to the extent those obligations may have been released or relinquished by mutual agreement of the Commission and the Withdrawing State. The Commission’s approval of Products and Advertisement prior to the effective date of withdrawal shall continue to be effective and be given full force and effect in the Withdrawing State, unless formally rescinded by the Withdrawing State in the same manner as provided by the laws of the Withdrawing State for the prospective disapproval of Products or Advertisement previously approved under State law.\n\n\t\t\tf. Reinstatement following withdrawal of any Compacting State shall occur upon the effective date of the Withdrawing State reenacting the Compact.\n\n2\n\nDefault.\n\t\t\ta. If the Commission determines that any Compacting State has at any time defaulted (Defaulting State) in the performance of any of its obligations or responsibilities under this Compact, the Bylaws or duly promulgated Rules or Operating Procedures, then, after notice and hearing as set forth in the Bylaws, all rights, privileges and benefits conferred by this Compact on the Defaulting State shall be suspended from the effective date of default as fixed by the Commission. The grounds for default include, but are not limited to, failure of a Compacting State to perform its obligations or responsibilities, and any other grounds designated in Commission Rules. The Commission shall immediately notify the Defaulting State in writing of the Defaulting State’s suspension pending a cure of the default. The Commission shall stipulate the conditions and the time period within which the Defaulting State must cure its default. If the Defaulting State fails to cure the default within the time period specified by the Commission, the Defaulting State shall be terminated from the Compact and all rights, privileges and benefits conferred by this Compact shall be terminated from the effective date of termination.\n\n\t\t\tb. Product approvals by the Commission or Product self-certifications, or any Advertisement in connection with such Product, that are in force on the effective date of termination shall remain in force in the Defaulting State in the same manner as if the Defaulting State had withdrawn voluntarily pursuant to paragraph 1 of this Article.\n\n\t\t\tc. Reinstatement following termination of any Compacting State requires a reenactment of the Compact.\n\n3\n\nDissolution of Compact.\n\t\t\ta. The Compact dissolves effective upon the date of the withdrawal or default of the Compacting State which reduces membership in the Compact to one Compacting State.\n\n\t\t\tb. Upon the dissolution of this Compact, the Compact becomes null and void and shall be of no further force or effect, and the business and affairs of the Commission shall be wound up and any surplus funds shall be distributed in accordance with the Bylaws.\n\n\t\t\tArticle XV.\n\n\t\t\tSeverability and Construction.\n\n1\n\nThe provisions of this Compact shall be severable; and if any phrase, clause, sentence, or provision is deemed unenforceable, the remaining provisions of the Compact shall be enforceable.\n\n2\n\nThe provisions of this Compact shall be liberally construed to effectuate its purposes.\n\t\t\tArticle XVI.\n\n\t\t\tBinding Effect of Compact and Other Laws.\n\n1\n\nOther Laws.\n\t\t\ta. Nothing herein prevents the enforcement of any other law of a Compacting State, except as provided in paragraph b of this Article.\n\n\t\t\tb. For any Product approved or certified to the Commission, the Rules, Uniform Standards, and any other requirements of the Commission shall constitute the exclusive provisions applicable to the content, approval and certification of such Products. For Advertisement that is subject to the Commission’s authority, any Rule, Uniform Standard or other requirement of the Commission which governs the content of the Advertisement shall constitute the exclusive provision that a Commissioner may apply to the content of the Advertisement. Notwithstanding the foregoing, no action taken by the Commission shall abrogate or restrict: (i) the access of any person to State courts; (ii) remedies available under State law related to breach of contract, tort, or other laws not specifically directed to the content of the Product; (iii) State law relating to the construction of insurance contracts; or (iv) the authority of the attorney general of the State, including but not limited to maintaining any actions or proceedings, as authorized by law.\n\n\t\t\tc. All insurance Products filed with individual States shall be subject to the laws of those States.\n\n2\n\nBinding Effect of this Compact.\n\t\t\ta. All lawful actions of the Commission, including all Rules and Operating Procedures promulgated by the Commission, are binding upon the Compacting States.\n\n\t\t\tb. All agreements between the Commission and the Compacting States are binding in accordance with their terms.\n\n\t\t\tc. Upon the request of a party to a conflict over the meaning or interpretation of Commission actions, and upon a majority vote of the Compacting States, the Commission may issue advisory opinions regarding the meaning or interpretation in dispute.\n\n\t\t\td. In the event any provision of this Compact exceeds the constitutional limits imposed on the legislature of any Compacting State, the obligations, duties, powers or jurisdiction sought to be conferred by that provision upon the Commission shall be ineffective as to that Compacting State, and those obligations, duties, powers or jurisdiction shall remain in the Compacting State and shall be exercised by the agency thereof to which those obligations, duties, powers or jurisdiction are delegated by law in effect at the time this Compact becomes effective.\n\n","order_by":null,"text":{"0":{"id":1352103,"text":"The General Assembly hereby enacts, and the Commonwealth of Virginia hereby enters into, the Interstate Insurance Product Regulation Compact with any and all states legally joining therein according to its terms, in the form substantially as follows:\t\tArticle I.\t\tPurposes.\t\tThe purposes of this Compact are, through means of joint and cooperative action among the Compacting States:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":1352104,"text":"To promote and protect the interest of consumers of individual and group annuity, life insurance, disability income and long-term care insurance products;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":1352105,"text":"To develop uniform standards for insurance products covered under the Compact;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":1352106,"text":"To establish a central clearinghouse to receive and provide prompt review of insurance products covered under the Compact and, in certain cases, advertisements related thereto, submitted by insurers authorized to do business in one or more Compacting States;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":1352107,"text":"To give appropriate regulatory approval to those product filings and advertisements satisfying the applicable uniform standard;","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":1352108,"text":"To improve coordination of regulatory resources and expertise between state insurance departments regarding the setting of uniform standards and review of insurance products covered under the Compact;","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":1352109,"text":"To create the Interstate Insurance Product Regulation Commission; and","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"7":{"id":1352110,"text":"To perform these and such other related functions as may be consistent with the state regulation of the business of insurance.\n\t\t\tArticle II.\t\t\tDefinitions.\t\t\tFor purposes of this Compact:","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"1"},"8":{"id":1352111,"text":"“Advertisement” means any material designed to create public interest in a Product, or induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replace, or retain a policy, as more specifically defined in the Rules and Operating Procedures of the Commission.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"7","next_prefix":"2"},"9":{"id":1352112,"text":"“Bylaws” mean those bylaws established by the Commission for its governance, or for directing or controlling the Commission’s actions or conduct.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"10":{"id":1352113,"text":"“Compacting State” means any State which has enacted this Compact legislation and which has not withdrawn pursuant to Article XIV, Section 1, or been terminated pursuant to Article XIV, Section 2.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"11":{"id":1352114,"text":"“Commission” means the “Interstate Insurance Product Regulation Commission” established by this Compact.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"12":{"id":1352115,"text":"“Commissioner” means the chief insurance regulatory official of a State including, but not limited to, commissioner, superintendent, director, or administrator.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"13":{"id":1352116,"text":"“Domiciliary State” means the state in which an Insurer is incorporated or organized; or, in the case of an alien Insurer, its state of entry.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"14":{"id":1352117,"text":"“Insurer” means any entity licensed by a State to issue contracts of insurance for any of the lines of insurance covered by this Act.","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"8"},"15":{"id":1352118,"text":"“Member” means the person chosen by a Compacting State as its representative to the Commission, or his or her designee.","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"7","next_prefix":"9"},"16":{"id":1352119,"text":"“Non-compacting State” means any State which is not at the time a Compacting State.","type":"section","prefixes":["9"],"prefix":"9","entire_prefix":"9","prefix_anchor":"9","level":1,"prior_prefix":"8","next_prefix":"10"},"17":{"id":1352120,"text":"“Operating Procedures” mean procedures promulgated by the Commission implementing a Rule, Uniform Standard or a provision of this Compact.","type":"section","prefixes":["10"],"prefix":"10","entire_prefix":"10","prefix_anchor":"10","level":1,"prior_prefix":"9","next_prefix":"11"},"18":{"id":1352121,"text":"“Product” means the form of a policy or contract, including any application, endorsement, or related form which is attached to and made a part of the policy or contract, and any evidence of coverage or certificate, for an individual or group annuity, life insurance, disability income or long-term care insurance product that an Insurer is authorized to issue.","type":"section","prefixes":["11"],"prefix":"11","entire_prefix":"11","prefix_anchor":"11","level":1,"prior_prefix":"10","next_prefix":"12"},"19":{"id":1352122,"text":"“Rule” means a statement of general or particular applicability and future effect promulgated by the Commission, including a Uniform Standard developed pursuant to Article VII of this Compact, designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of the Commission, which shall have the force and effect of law in the Compacting States.","type":"section","prefixes":["12"],"prefix":"12","entire_prefix":"12","prefix_anchor":"12","level":1,"prior_prefix":"11","next_prefix":"13"},"20":{"id":1352123,"text":"“State” means any state, district or territory of the United States of America.","type":"section","prefixes":["13"],"prefix":"13","entire_prefix":"13","prefix_anchor":"13","level":1,"prior_prefix":"12","next_prefix":"14"},"21":{"id":1352124,"text":"“Third-Party Filer” means an entity that submits a Product filing to the Commission on behalf of an Insurer.","type":"section","prefixes":["14"],"prefix":"14","entire_prefix":"14","prefix_anchor":"14","level":1,"prior_prefix":"13","next_prefix":"15"},"22":{"id":1352125,"text":"“Uniform Standard” means a standard adopted by the Commission for a Product line, pursuant to Article VII of this Compact, and shall include all of the Product requirements in aggregate; provided, that each Uniform Standard shall be construed, whether express or implied, to prohibit the use of any inconsistent, misleading or ambiguous provisions in a Product and the form of the Product made available to the public shall not be unfair, inequitable or against public policy as determined by the Commission.\n\t\t\tArticle III.\t\t\tEstablishment of the Commission and Venue.","type":"section","prefixes":["15"],"prefix":"15","entire_prefix":"15","prefix_anchor":"15","level":1,"prior_prefix":"14","next_prefix":"1"},"23":{"id":1352126,"text":"The Compacting States hereby create and establish a joint public agency known as the “Interstate Insurance Product Regulation Commission.” Pursuant to Article IV, the Commission will have the power to develop Uniform Standards for Product lines, receive and provide prompt review of Products filed therewith, and give approval to those Product filings satisfying applicable Uniform Standards; provided, it is not intended for the Commission to be the exclusive entity for receipt and review of insurance product filings. Nothing herein shall prohibit any Insurer from filing its product in any State wherein the Insurer is licensed to conduct the business of insurance; and any such filing shall be subject to the laws of the State where filed.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"15","next_prefix":"2"},"24":{"id":1352127,"text":"The Commission is a body corporate and politic, and an instrumentality of the Compacting States.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"25":{"id":1352128,"text":"The Commission is solely responsible for its liabilities except as otherwise specifically provided in this Compact.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"26":{"id":1352129,"text":"Venue is proper and judicial proceedings by or against the Commission shall be brought solely and exclusively in a court of competent jurisdiction where the principal office of the Commission is located.\n\t\t\tArticle IV.\t\t\tPowers of the Commission.\t\t\tThe Commission shall have the following powers:","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"1"},"27":{"id":1352130,"text":"To promulgate Rules, pursuant to Article VII of this Compact, which shall have the force and effect of law and shall be binding in the Compacting States to the extent and in the manner provided in this Compact;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"4","next_prefix":"2"},"28":{"id":1352131,"text":"To exercise its rule-making authority and establish reasonable Uniform Standards for Products covered under the Compact, and Advertisement related thereto, which shall have the force and effect of law and shall be binding in the Compacting States, but only for those Products filed with the Commission, provided, that a Compacting State shall have the right to opt out of such Uniform Standard pursuant to Article VII, to the extent and in the manner provided in this Compact, and, provided further, that any Uniform Standard established by the Commission for long-term care insurance products may provide the same or greater protections for consumers as, but shall not provide less than, those protections set forth in the National Association of Insurance Commissioners’ Long-Term Care Insurance Model Act and Long-Term Care Insurance Model Regulation, respectively, adopted as of 2001. The Commission shall consider whether any subsequent amendments to the NAIC Long-Term Care Insurance Model Act or Long-Term Care Insurance Model Regulation adopted by the NAIC require amending of the Uniform Standards established by the Commission for long-term care insurance products;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"29":{"id":1352132,"text":"To receive and review in an expeditious manner Products filed with the Commission, and rate filings for disability income and long-term care insurance Products, and give approval of those Products and rate filings that satisfy the applicable Uniform Standard, where such approval shall have the force and effect of law and be binding on the Compacting States to the extent and in the manner provided in the Compact;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"30":{"id":1352133,"text":"To receive and review in an expeditious manner Advertisement relating to long-term care insurance products for which Uniform Standards have been adopted by the Commission, and give approval to all Advertisement that satisfies the applicable Uniform Standard. For any product covered under this Compact, other than long-term care insurance products, the Commission shall have the authority to require an insurer to submit all or any part of its Advertisement with respect to that product for review or approval prior to use, if the Commission determines that the nature of the product is such that an Advertisement of the product could have the capacity or tendency to mislead the public. The actions of Commission as provided in this section shall have the force and effect of law and shall be binding in the Compacting States to the extent and in the manner provided in the Compact;","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"31":{"id":1352134,"text":"To exercise its rule-making authority and designate Products and Advertisement that may be subject to a self-certification process without the need for prior approval by the Commission;","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"32":{"id":1352135,"text":"To promulgate Operating Procedures, pursuant to Article VII of this Compact, which shall be binding in the Compacting States to the extent and in the manner provided in this Compact;","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"33":{"id":1352136,"text":"To bring and prosecute legal proceedings or actions in its name as the Commission; provided, that the standing of any state insurance department to sue or be sued under applicable law shall not be affected;","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"8"},"34":{"id":1352137,"text":"To issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence;","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"7","next_prefix":"9"},"35":{"id":1352138,"text":"To establish and maintain offices;","type":"section","prefixes":["9"],"prefix":"9","entire_prefix":"9","prefix_anchor":"9","level":1,"prior_prefix":"8","next_prefix":"10"},"36":{"id":1352139,"text":"To purchase and maintain insurance and bonds;","type":"section","prefixes":["10"],"prefix":"10","entire_prefix":"10","prefix_anchor":"10","level":1,"prior_prefix":"9","next_prefix":"11"},"37":{"id":1352140,"text":"To borrow, accept or contract for services of personnel, including, but not limited to, employees of a Compacting State;","type":"section","prefixes":["11"],"prefix":"11","entire_prefix":"11","prefix_anchor":"11","level":1,"prior_prefix":"10","next_prefix":"12"},"38":{"id":1352141,"text":"To hire employees, professionals or specialists, and elect or appoint officers, and to fix their compensation, define their duties and give them appropriate authority to carry out the purposes of the Compact, and determine their qualifications; and to establish the Commission’s personnel policies and programs relating to, among other things, conflicts of interest, rates of compensation and qualifications of personnel;","type":"section","prefixes":["12"],"prefix":"12","entire_prefix":"12","prefix_anchor":"12","level":1,"prior_prefix":"11","next_prefix":"13"},"39":{"id":1352142,"text":"To accept any and all appropriate donations and grants of money, equipment, supplies, materials and services, and to receive, utilize and dispose of the same; provided that at all times the Commission shall strive to avoid any appearance of impropriety;","type":"section","prefixes":["13"],"prefix":"13","entire_prefix":"13","prefix_anchor":"13","level":1,"prior_prefix":"12","next_prefix":"14"},"40":{"id":1352143,"text":"To lease, purchase, accept appropriate gifts or donations of, or otherwise to own, hold, improve or use, any property, real, personal or mixed; provided that at all times the Commission shall strive to avoid any appearance of impropriety;","type":"section","prefixes":["14"],"prefix":"14","entire_prefix":"14","prefix_anchor":"14","level":1,"prior_prefix":"13","next_prefix":"15"},"41":{"id":1352144,"text":"To sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of any property, real, personal or mixed;","type":"section","prefixes":["15"],"prefix":"15","entire_prefix":"15","prefix_anchor":"15","level":1,"prior_prefix":"14","next_prefix":"16"},"42":{"id":1352145,"text":"To remit filing fees to Compacting States as may be set forth in the Bylaws, Rules or Operating Procedures;","type":"section","prefixes":["16"],"prefix":"16","entire_prefix":"16","prefix_anchor":"16","level":1,"prior_prefix":"15","next_prefix":"17"},"43":{"id":1352146,"text":"To enforce compliance by Compacting States with Rules, Uniform Standards, Operating Procedures and Bylaws;","type":"section","prefixes":["17"],"prefix":"17","entire_prefix":"17","prefix_anchor":"17","level":1,"prior_prefix":"16","next_prefix":"18"},"44":{"id":1352147,"text":"To provide for dispute resolution among Compacting States;","type":"section","prefixes":["18"],"prefix":"18","entire_prefix":"18","prefix_anchor":"18","level":1,"prior_prefix":"17","next_prefix":"19"},"45":{"id":1352148,"text":"To advise Compacting States on issues relating to Insurers domiciled or doing business in Non-compacting jurisdictions, consistent with the purposes of this Compact;","type":"section","prefixes":["19"],"prefix":"19","entire_prefix":"19","prefix_anchor":"19","level":1,"prior_prefix":"18","next_prefix":"20"},"46":{"id":1352149,"text":"To provide advice and training to those personnel in state insurance departments responsible for product review, and to be a resource for state insurance departments;","type":"section","prefixes":["20"],"prefix":"20","entire_prefix":"20","prefix_anchor":"20","level":1,"prior_prefix":"19","next_prefix":"21"},"47":{"id":1352150,"text":"To establish a budget and make expenditures;","type":"section","prefixes":["21"],"prefix":"21","entire_prefix":"21","prefix_anchor":"21","level":1,"prior_prefix":"20","next_prefix":"22"},"48":{"id":1352151,"text":"To borrow money;","type":"section","prefixes":["22"],"prefix":"22","entire_prefix":"22","prefix_anchor":"22","level":1,"prior_prefix":"21","next_prefix":"23"},"49":{"id":1352152,"text":"To appoint committees, including advisory committees comprising Members, state insurance regulators, state legislators or their representatives, insurance industry and consumer representatives, and such other interested persons as may be designated in the Bylaws;","type":"section","prefixes":["23"],"prefix":"23","entire_prefix":"23","prefix_anchor":"23","level":1,"prior_prefix":"22","next_prefix":"24"},"50":{"id":1352153,"text":"To provide and receive information from, and to cooperate with, law-enforcement agencies;","type":"section","prefixes":["24"],"prefix":"24","entire_prefix":"24","prefix_anchor":"24","level":1,"prior_prefix":"23","next_prefix":"25"},"51":{"id":1352154,"text":"To adopt and use a corporate seal; and","type":"section","prefixes":["25"],"prefix":"25","entire_prefix":"25","prefix_anchor":"25","level":1,"prior_prefix":"24","next_prefix":"26"},"52":{"id":1352155,"text":"To perform such other functions as may be necessary or appropriate to achieve the purposes of this Compact consistent with the state regulation of the business of insurance.\n\t\t\tArticle V.\t\t\tOrganization of the Commission.","type":"section","prefixes":["26"],"prefix":"26","entire_prefix":"26","prefix_anchor":"26","level":1,"prior_prefix":"25","next_prefix":"1"},"53":{"id":1352156,"text":"Membership, Voting and Bylaws.\n\t\t\ta. Each Compacting State shall have and be limited to one Member. Each Member shall be qualified to serve in that capacity pursuant to applicable law of the Compacting State. Any Member may be removed or suspended from office as provided by the law of the State from which he or she shall be appointed. Any vacancy occurring in the Commission shall be filled in accordance with the laws of the Compacting State wherein the vacancy exists. Nothing herein shall be construed to affect the manner in which a Compacting State determines the election or appointment and qualification of its own Commissioner.\t\t\tb. Each Member shall be entitled to one vote and shall have an opportunity to participate in the governance of the Commission in accordance with the Bylaws. Notwithstanding any provision herein to the contrary, no action of the Commission with respect to the promulgation of a Uniform Standard shall be effective unless two-thirds of the Members vote in favor thereof.\t\t\tc. The Commission shall, by a majority of the Members, prescribe Bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes, and exercise the powers, of the Compact, including, but not limited to:\t\t\ti. Establishing the fiscal year of the Commission;\t\t\tii. Providing reasonable procedures for appointing and electing members, as well as holding meetings, of the Management Committee;\t\t\tiii. Providing reasonable standards and procedures: (i) for the establishment and meetings of other committees, and (ii) governing any general or specific delegation of any authority or function of the Commission;\t\t\tiv. Providing reasonable procedures for calling and conducting meetings of the Commission that consists of a majority of Commission members, ensuring reasonable advance notice of each such meeting, and providing for the right of citizens to attend each such meeting with enumerated exceptions designed to protect the public’s interest, the privacy of individuals, and insurers’ proprietary information, including trade secrets. The Commission may meet in camera only after a majority of the entire membership votes to close a meeting en toto or in part. As soon as practicable, the Commission must make public (i) a copy of the vote to close the meeting revealing the vote of each Member with no proxy votes allowed, and (ii) votes taken during such meeting;\t\t\tv. Establishing the titles, duties and authority and reasonable procedures for the election of the officers of the Commission;\t\t\tvi. Providing reasonable standards and procedures for the establishment of the personnel policies and programs of the Commission. Notwithstanding any civil service or other similar laws of any Compacting State, the Bylaws shall exclusively govern the personnel policies and programs of the Commission;\t\t\tvii. Promulgating a code of ethics to address permissible and prohibited activities of Commission members and employees; and\t\t\tviii. Providing a mechanism for winding up the operations of the Commission and the equitable disposition of any surplus funds that may exist after the termination of the Compact after the payment and\/or reserving of all of its debts and obligations.\t\t\td. The Commission shall publish its Bylaws in a convenient form and file a copy thereof and a copy of any amendment thereto, with the appropriate agency or officer in each of the Compacting States.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"26","next_prefix":"2"},"54":{"id":1352157,"text":"Management Committee, Officers and Personnel.\n\t\t\ta. A Management Committee comprising no more than 14 members shall be established as follows:\t\t\ti. One member from each of the six Compacting States with the largest premium volume for individual and group annuities, life, disability income, and long-term care insurance products, determined from the records of the NAIC for the prior year;\t\t\tii. Four members from those Compacting States with at least two percent of the market based on the premium volume described above, other than the six Compacting States with the largest premium volume, selected on a rotating basis as provided in the Bylaws; and\t\t\tiii. Four members from those Compacting States with less than two percent of the market, based on the premium volume described above, with one selected from each of the four zone regions of the NAIC as provided in the Bylaws.\t\t\tb. The Management Committee shall have such authority and duties as may be set forth in the Bylaws, including but not limited to:\t\t\ti. Managing the affairs of the Commission in a manner consistent with the Bylaws and purposes of the Commission;\t\t\tii. Establishing and overseeing an organizational structure within, and appropriate procedures for, the Commission to provide for the creation of Uniform Standards and other Rules, receipt and review of product filings, administrative and technical support functions, review of decisions regarding the disapproval of a product filing, and the review of elections made by a Compacting State to opt out of a Uniform Standard; provided that a Uniform Standard shall not be submitted to the Compacting States for adoption unless approved by two-thirds of the members of the Management Committee;\t\t\tiii. Overseeing the offices of the Commission; and\t\t\tiv. Planning, implementing, and coordinating communications and activities with other state, federal and local government organizations in order to advance the goals of the Commission.\t\t\tc. The Commission shall elect annually officers from the Management Committee, with each having such authority and duties as may be specified in the Bylaws.\t\t\td. The Management Committee may, subject to the approval of the Commission, appoint or retain an executive director for such period, upon such terms and conditions and for such compensation as the Commission may deem appropriate. The executive director shall serve as secretary to the Commission, but shall not be a Member of the Commission. The executive director shall hire and supervise such other staff as may be authorized by the Commission.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"55":{"id":1352158,"text":"Legislative and Advisory Committees.\n\t\t\ta. A legislative committee comprising state legislators or their designees shall be established to monitor the operations of, and make recommendations to, the Commission, including the Management Committee; provided that the manner of selection and term of any legislative committee member shall be as set forth in the Bylaws. Prior to the adoption by the Commission of any Uniform Standard, revision to the Bylaws, annual budget, or other significant matter as may be provided in the Bylaws, the Management Committee shall consult with and report to the legislative committee.\t\t\tb. The Commission shall establish two advisory committees, one of which shall comprise consumer representatives independent of the insurance industry, and the other comprising insurance industry representatives.\t\t\tc. The Commission may establish additional advisory committees as its Bylaws may provide for the carrying out of its functions.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"56":{"id":1352159,"text":"Corporate Records of the Commission.\n\t\t\tThe Commission shall maintain its corporate books and records in accordance with the Bylaws.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"57":{"id":1352160,"text":"Qualified Immunity, Defense and Indemnification.\n\t\t\ta. The Members, officers, executive director, employees and representatives of the Commission shall be immune from suit and liability, either personally or in their official capacity, for any claim for damage to or loss of property or personal injury or other civil liability caused by or arising out of any actual or alleged act, error or omission that occurred, or that the person against whom the claim is made had a reasonable basis for believing occurred within the scope of Commission employment, duties or responsibilities; provided, that nothing in this paragraph shall be construed to protect any such person from suit and\/or liability for any damage, loss, injury or liability caused by the intentional or willful and wanton misconduct of that person.\t\t\tb. The Commission shall defend any Member, officer, executive director, employee or representative of the Commission in any civil action seeking to impose liability arising out of any actual or alleged act, error or omission that occurred within the scope of Commission employment, duties or responsibilities, or that the person against whom the claim is made had a reasonable basis for believing occurred within the scope of Commission employment, duties or responsibilities; provided, that nothing herein shall be construed to prohibit that person from retaining his or her own counsel; and provided further, that the actual or alleged act, error or omission did not result from that person’s intentional or willful and wanton misconduct.\t\t\tc. The Commission shall indemnify and hold harmless any Member, officer, executive director, employee or representative of the Commission for the amount of any settlement or judgment obtained against that person arising out of any actual or alleged act, error or omission that occurred within the scope of Commission employment, duties or responsibilities; or that such person had a reasonable basis for believing occurred within the scope of Commission employment, duties or responsibilities, provided, that the actual or alleged act, error or omission did not result from the intentional or willful and wanton misconduct of that person.\t\t\tArticle VI.\t\t\tMeetings and Acts of the Commission.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"1"},"58":{"id":1352161,"text":"The Commission shall meet and take such actions as are consistent with the provisions of this Compact and the Bylaws.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"5","next_prefix":"2"},"59":{"id":1352162,"text":"Each Member of the Commission shall have the right and power to cast a vote to which that Compacting State is entitled and to participate in the business and affairs of the Commission. A Member shall vote in person or by such other means as provided in the Bylaws. The Bylaws may provide for Members’ participation in meetings by telephone or other means of communication.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"60":{"id":1352163,"text":"The Commission shall meet at least once during each calendar year. Additional meetings shall be held as set forth in the Bylaws.\n\t\t\tArticle VII.\t\t\tRules and Operating Procedures: Rulemaking Functions of the Commission and Opting Out of Uniform Standards.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"1"},"61":{"id":1352164,"text":"Rulemaking Authority. The Commission shall promulgate reasonable Rules, including Uniform Standards, and Operating Procedures in order to effectively and efficiently achieve the purposes of this Compact. Notwithstanding the foregoing, in the event the Commission exercises its rulemaking authority in a manner that is beyond the scope of the purposes of this Act, or the powers granted hereunder, then such an action by the Commission shall be invalid and have no force and effect.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"3","next_prefix":"2"},"62":{"id":1352165,"text":"Rulemaking Procedure. Rules and Operating Procedures shall be made pursuant to a rulemaking process that conforms to the Model State Administrative Procedure Act of 1981, as amended, as may be appropriate to the operations of the Commission. Before the Commission adopts a Uniform Standard, the Commission shall give written notice to the relevant state legislative committee(s) in each Compacting State responsible for insurance issues of its intention to adopt the Uniform Standard. The Commission in adopting a Uniform Standard shall consider fully all submitted materials and issue a concise explanation of its decision.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"63":{"id":1352166,"text":"Effective Date and Opt Out of a Uniform Standard. A Uniform Standard shall become effective 90 days after its promulgation by the Commission or such later date as the Commission may determine; provided, however, that a Compacting State may opt out of a Uniform Standard as provided in this Article. “Opt out” shall be defined as any action by a Compacting State to decline to adopt or participate in a promulgated Uniform Standard. All other Rules and Operating Procedures, and amendments thereto, shall become effective as of the date specified in each Rule, Operating Procedure or amendment.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"64":{"id":1352167,"text":"Opt Out Procedure. A Compacting State may opt out of a Uniform Standard, either by legislation or regulation duly promulgated by the Insurance Department under the Compacting State’s Administrative Procedure Act or duly promulgated pursuant to the Compacting State’s law. If a Compacting State elects to opt out of a Uniform Standard by regulation, it must (a) give written notice to the Commission no later than 10 business days after the Uniform Standard is promulgated, or at the time the State becomes a Compacting State and (b) find that the Uniform Standard does not provide reasonable protections to the citizens of the State, given the conditions in the State. The Commissioner or tribunal shall make specific findings of fact and conclusions of law, based on a preponderance of the evidence, detailing the conditions in the State which warrant a departure from the Uniform Standard and determining that the Uniform Standard would not reasonably protect the citizens of the State. The Commissioner or tribunal must consider and balance the following factors and find that the conditions in the State and needs of the citizens of the State outweigh: (i) the intent of the legislature to participate in, and the benefits of, an interstate agreement to establish national uniform consumer protections for the Products subject to this Act; and (ii) the presumption that a Uniform Standard adopted by the Commission provides reasonable protections to consumers of the relevant Product.\n\t\t\tNotwithstanding the foregoing, a Compacting State may, at the time of its enactment of this Compact, prospectively opt out of all Uniform Standards involving long-term care insurance products by expressly providing for such opt out in the enacted Compact, and such an opt out shall not be treated as a material variance in the offer or acceptance of any State to participate in this Compact. Such an opt out shall be effective at the time of enactment of this Compact by the Compacting State and shall apply to all existing Uniform Standards involving long-term care insurance products and those subsequently promulgated.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"65":{"id":1352168,"text":"Effect of Opt Out. If a Compacting State elects to opt out of a Uniform Standard, the Uniform Standard shall remain applicable in the Compacting State electing to opt out until such time the opt out legislation is enacted into law or the regulation opting out becomes effective.\n\t\t\tOnce the opt out of a Uniform Standard by a Compacting State becomes effective as provided under the laws of that State, the Uniform Standard shall have no further force and effect in that State unless and until the legislation or regulation implementing the opt out is repealed or otherwise becomes ineffective under the laws of the State. If a Compacting State opts out of a Uniform Standard after the Uniform Standard has been made effective in that State, the opt out shall have the same prospective effect as provided under Article XIV for withdrawals.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"66":{"id":1352169,"text":"Stay of Uniform Standard. If a Compacting State has formally initiated the process of opting out of a Uniform Standard by regulation, and while the regulatory opt out is pending, the Compacting State may petition the Commission, at least 15 days before the effective date of the Uniform Standard, to stay the effectiveness of the Uniform Standard in that State. The Commission may grant a stay if it determines the regulatory opt out is being pursued in a reasonable manner and there is a likelihood of success. If a stay is granted or extended by the Commission, the stay or extension thereof may postpone the effective date by up to 90 days, unless affirmatively extended by the Commission; provided, a stay may not be permitted to remain in effect for more than one year unless the Compacting State can show extraordinary circumstances which warrant a continuance of the stay, including, but not limited to, the existence of a legal challenge which prevents the Compacting State from opting out. A stay may be terminated by the Commission upon notice that the rulemaking process has been terminated.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"67":{"id":1352170,"text":"Not later than 30 days after a Rule or Operating Procedure is promulgated, any person may file a petition for judicial review of the Rule or Operating Procedure; provided, that the filing of such a petition shall not stay or otherwise prevent the Rule or Operating Procedure from becoming effective unless the court finds that the petitioner has a substantial likelihood of success. The court shall give deference to the actions of the Commission consistent with applicable law and shall not find the Rule or Operating Procedure to be unlawful if the Rule or Operating Procedure represents a reasonable exercise of the Commission’s authority.\n\t\t\tArticle VIII.\t\t\tCommission Records and Enforcement.","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"1"},"68":{"id":1352171,"text":"The Commission shall promulgate Rules establishing conditions and procedures for public inspection and copying of its information and official records, except such information and records involving the privacy of individuals and insurers’ trade secrets. The Commission may promulgate additional Rules under which it may make available to federal and state agencies, including law-enforcement agencies, records and information otherwise exempt from disclosure, and may enter into agreements with such agencies to receive or exchange information or records subject to nondisclosure and confidentiality provisions.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"7","next_prefix":"2"},"69":{"id":1352172,"text":"Except as to privileged records, data and information, the laws of any Compacting State pertaining to confidentiality or nondisclosure shall not relieve any Compacting State Commissioner of the duty to disclose any relevant records, data, or information to the Commission; provided, that disclosure to the Commission shall not be deemed to waive or otherwise affect any confidentiality requirement; and further provided, that, except as otherwise expressly provided in this Act, the Commission shall not be subject to the Compacting State’s laws pertaining to confidentiality and nondisclosure with respect to records, data, and information in its possession. Confidential information of the Commission shall remain confidential after such information is provided to any Commissioner.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"70":{"id":1352173,"text":"The Commission shall monitor Compacting States for compliance with duly adopted Bylaws, Rules, including Uniform Standards, and Operating Procedures. The Commission shall notify any non-complying Compacting State in writing of its noncompliance with Commission Bylaws, Rules or Operating Procedures. If a noncomplying Compacting State fails to remedy its noncompliance within the time specified in the notice of noncompliance, the Compacting State shall be deemed to be in default as set forth in Article XIV.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"71":{"id":1352174,"text":"The Commissioner of any State in which an Insurer is authorized to do business, or is conducting the business of insurance, shall continue to exercise his or her authority to oversee the market regulation of the activities of the Insurer in accordance with the provisions of the State’s law. The Commissioner’s enforcement of compliance with the Compact is governed by the following provisions:\n\t\t\ta. With respect to the Commissioner’s market regulation of a Product or Advertisement that is approved or certified to the Commission, the content of the Product or Advertisement shall not constitute a violation of the provisions, standards or requirements of the Compact except upon a final order of the Commission, issued at the request of a Commissioner after prior notice to the Insurer and an opportunity for hearing before the Commission.\t\t\tb. Before a Commissioner may bring an action for violation of any provision, standard or requirement of the Compact relating to the content of an Advertisement not approved or certified to the Commission, the Commission, or an authorized Commission officer or employee, must authorize the action. However, authorization pursuant to this paragraph does not require notice to the Insurer, opportunity for hearing or disclosure of requests for authorization or records of the Commission’s action on such requests.\t\t\tArticle IX.\t\t\tDispute Resolution.\t\t\tThe Commission shall attempt, upon the request of a Member, to resolve any disputes or other issues that are subject to this Compact and which may arise between two or more Compacting States, or between Compacting States and Non-compacting States, and the Commission shall promulgate an Operating Procedure providing for resolution of such disputes.\t\t\tArticle X.\t\t\tProduct Filing and Approval.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"1"},"72":{"id":1352175,"text":"Insurers and Third-Party Filers seeking to have a Product approved by the Commission shall file the Product with, and pay applicable filing fees to, the Commission. Nothing in this Act shall be construed to restrict or otherwise prevent an insurer from filing its Product with the insurance department in any State wherein the insurer is licensed to conduct the business of insurance, and such filing shall be subject to the laws of the States where filed.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"4","next_prefix":"2"},"73":{"id":1352176,"text":"The Commission shall establish appropriate filing and review processes and procedures pursuant to Commission Rules and Operating Procedures. Notwithstanding any provision herein to the contrary, the Commission shall promulgate Rules to establish conditions and procedures under which the Commission will provide public access to Product filing information. In establishing such Rules, the Commission shall consider the interests of the public in having access to such information, as well as protection of personal medical and financial information and trade secrets, that may be contained in a Product filing or supporting information.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"74":{"id":1352177,"text":"Any Product approved by the Commission may be sold or otherwise issued in those Compacting States for which the Insurer is legally authorized to do business.\n\t\t\tArticle XI.\t\t\tReview of Commission Decisions Regarding Filings.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"1"},"75":{"id":1352178,"text":"Not later than 30 days after the Commission has given notice of a disapproved Product or Advertisement filed with the Commission, the Insurer or Third Party Filer whose filing was disapproved may appeal the determination to a review panel appointed by the Commission. The Commission shall promulgate Rules to establish procedures for appointing such review panels and provide for notice and hearing. An allegation that the Commission, in disapproving a Product or Advertisement filed with the Commission, acted arbitrarily, capriciously, or in a manner that is an abuse of discretion or otherwise not in accordance with the law, is subject to judicial review in accordance with Article III, section 4.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"3","next_prefix":"2"},"76":{"id":1352179,"text":"The Commission shall have authority to monitor, review and reconsider Products and Advertisement subsequent to their filing or approval upon a finding that the Product does not meet the relevant Uniform Standard. Where appropriate, the Commission may withdraw or modify its approval after proper notice and hearing, subject to the appeal process in section 1 above.\n\t\t\tArticle XII.\t\t\tFinance.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"1"},"77":{"id":1352180,"text":"The Commission shall pay or provide for the payment of the reasonable expenses of its establishment and organization. To fund the cost of its initial operations, the Commission may accept contributions and other forms of funding from the National Association of Insurance Commissioners, Compacting States and other sources. Contributions and other forms of funding from other sources shall be of such a nature that the independence of the Commission concerning the performance of its duties shall not be compromised.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"2","next_prefix":"2"},"78":{"id":1352181,"text":"The Commission shall collect a filing fee from each Insurer and Third Party Filer filing a Product with the Commission to cover the cost of the operations and activities of the Commission and its staff in a total amount sufficient to cover the Commission’s annual budget.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"79":{"id":1352182,"text":"The Commission’s budget for a fiscal year shall not be approved until it has been subject to notice and comment as set forth in Article VII of this Compact.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"80":{"id":1352183,"text":"The Commission shall be exempt from all taxation in and by the Compacting States.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"81":{"id":1352184,"text":"The Commission shall not pledge the credit of any Compacting State, except by and with the appropriate legal authority of that Compacting State.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"82":{"id":1352185,"text":"The Commission shall keep complete and accurate accounts of all its internal receipts, including grants and donations, and disbursements of all funds under its control. The internal financial accounts of the Commission shall be subject to the accounting procedures established under its Bylaws. The financial accounts and reports including the system of internal controls and procedures of the Commission shall be audited annually by an independent certified public accountant. Upon the determination of the Commission, but no less frequently than every three years, the review of the independent auditor shall include a management and performance audit of the Commission. The Commission shall make an Annual Report to the Governor and legislature of the Compacting States, which shall include a report of the independent audit. The Commission’s internal accounts shall not be confidential and such materials may be shared with the Commissioner of any Compacting State upon request; provided, however, that any work papers related to any internal or independent audit and any information regarding the privacy of individuals and insurers’ proprietary information, including trade secrets, shall remain confidential.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"83":{"id":1352186,"text":"No Compacting State shall have any claim to or ownership of any property held by or vested in the Commission or to any Commission funds held pursuant to the provisions of this Compact.\n\t\t\tArticle XIII.\t\t\tCompacting States, Effective Date and Amendment.","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"1"},"84":{"id":1352187,"text":"Any State is eligible to become a Compacting State.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"7","next_prefix":"2"},"85":{"id":1352188,"text":"The Compact shall become effective and binding upon legislative enactment of the Compact into law by two Compacting States; provided, the Commission shall become effective for purposes of adopting Uniform Standards for, reviewing, and giving approval or disapproval of, Products filed with the Commission that satisfy applicable Uniform Standards only after 26 States are Compacting States or, alternatively, by States representing greater than 40 percent of the premium volume for life insurance, annuity, disability income, and long-term care insurance products, based on records of the NAIC for the prior year. Thereafter, it shall become effective and binding as to any other Compacting State upon enactment of the Compact into law by that State.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"86":{"id":1352189,"text":"Amendments to the Compact may be proposed by the Commission for enactment by the Compacting States. No amendment shall become effective and binding upon the Commission and the Compacting States unless and until all Compacting States enact the amendment into law.\n\t\t\tArticle XIV.\t\t\tWithdrawal, Default and Termination.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"1"},"87":{"id":1352190,"text":"Withdrawal.\n\t\t\ta. Once effective, the Compact shall continue in force and remain binding upon each and every Compacting State; provided, that a Compacting State may withdraw from the Compact (Withdrawing State) by enacting a statute specifically repealing the statute which enacted the Compact into law.\t\t\tb. The effective date of withdrawal is the effective date of the repealing statute. However, the withdrawal shall not apply to any Product filings approved or self-certified, or any Advertisement of such Products, on the date the repealing statute becomes effective, except by mutual agreement of the Commission and the Withdrawing State unless the approval is rescinded by the Withdrawing State as provided in subsection e of this section.\t\t\tc. The Commissioner of the Withdrawing State shall immediately notify the Management Committee in writing upon the introduction of legislation repealing this Compact in the Withdrawing State.\t\t\td. The Commission shall notify the other Compacting States of the introduction of such legislation within 10 days after its receipt of notice thereof.\t\t\te. The Withdrawing State is responsible for all obligations, duties and liabilities incurred through the effective date of withdrawal, including any obligations, the performance of which extend beyond the effective date of withdrawal, except to the extent those obligations may have been released or relinquished by mutual agreement of the Commission and the Withdrawing State. The Commission’s approval of Products and Advertisement prior to the effective date of withdrawal shall continue to be effective and be given full force and effect in the Withdrawing State, unless formally rescinded by the Withdrawing State in the same manner as provided by the laws of the Withdrawing State for the prospective disapproval of Products or Advertisement previously approved under State law.\t\t\tf. Reinstatement following withdrawal of any Compacting State shall occur upon the effective date of the Withdrawing State reenacting the Compact.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"3","next_prefix":"2"},"88":{"id":1352191,"text":"Default.\n\t\t\ta. If the Commission determines that any Compacting State has at any time defaulted (Defaulting State) in the performance of any of its obligations or responsibilities under this Compact, the Bylaws or duly promulgated Rules or Operating Procedures, then, after notice and hearing as set forth in the Bylaws, all rights, privileges and benefits conferred by this Compact on the Defaulting State shall be suspended from the effective date of default as fixed by the Commission. The grounds for default include, but are not limited to, failure of a Compacting State to perform its obligations or responsibilities, and any other grounds designated in Commission Rules. The Commission shall immediately notify the Defaulting State in writing of the Defaulting State’s suspension pending a cure of the default. The Commission shall stipulate the conditions and the time period within which the Defaulting State must cure its default. If the Defaulting State fails to cure the default within the time period specified by the Commission, the Defaulting State shall be terminated from the Compact and all rights, privileges and benefits conferred by this Compact shall be terminated from the effective date of termination.\t\t\tb. Product approvals by the Commission or Product self-certifications, or any Advertisement in connection with such Product, that are in force on the effective date of termination shall remain in force in the Defaulting State in the same manner as if the Defaulting State had withdrawn voluntarily pursuant to paragraph 1 of this Article.\t\t\tc. Reinstatement following termination of any Compacting State requires a reenactment of the Compact.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"89":{"id":1352192,"text":"Dissolution of Compact.\n\t\t\ta. The Compact dissolves effective upon the date of the withdrawal or default of the Compacting State which reduces membership in the Compact to one Compacting State.\t\t\tb. Upon the dissolution of this Compact, the Compact becomes null and void and shall be of no further force or effect, and the business and affairs of the Commission shall be wound up and any surplus funds shall be distributed in accordance with the Bylaws.\t\t\tArticle XV.\t\t\tSeverability and Construction.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"1"},"90":{"id":1352193,"text":"The provisions of this Compact shall be severable; and if any phrase, clause, sentence, or provision is deemed unenforceable, the remaining provisions of the Compact shall be enforceable.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"3","next_prefix":"2"},"91":{"id":1352194,"text":"The provisions of this Compact shall be liberally construed to effectuate its purposes.\n\t\t\tArticle XVI.\t\t\tBinding Effect of Compact and Other Laws.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"1"},"92":{"id":1352195,"text":"Other Laws.\n\t\t\ta. Nothing herein prevents the enforcement of any other law of a Compacting State, except as provided in paragraph b of this Article.\t\t\tb. For any Product approved or certified to the Commission, the Rules, Uniform Standards, and any other requirements of the Commission shall constitute the exclusive provisions applicable to the content, approval and certification of such Products. For Advertisement that is subject to the Commission’s authority, any Rule, Uniform Standard or other requirement of the Commission which governs the content of the Advertisement shall constitute the exclusive provision that a Commissioner may apply to the content of the Advertisement. Notwithstanding the foregoing, no action taken by the Commission shall abrogate or restrict: (i) the access of any person to State courts; (ii) remedies available under State law related to breach of contract, tort, or other laws not specifically directed to the content of the Product; (iii) State law relating to the construction of insurance contracts; or (iv) the authority of the attorney general of the State, including but not limited to maintaining any actions or proceedings, as authorized by law.\t\t\tc. All insurance Products filed with individual States shall be subject to the laws of those States.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"2","next_prefix":"2"},"93":{"id":1352196,"text":"Binding Effect of this Compact.\n\t\t\ta. All lawful actions of the Commission, including all Rules and Operating Procedures promulgated by the Commission, are binding upon the Compacting States.\t\t\tb. All agreements between the Commission and the Compacting States are binding in accordance with their terms.\t\t\tc. Upon the request of a party to a conflict over the meaning or interpretation of Commission actions, and upon a majority vote of the Compacting States, the Commission may issue advisory opinions regarding the meaning or interpretation in dispute.\t\t\td. In the event any provision of this Compact exceeds the constitutional limits imposed on the legislature of any Compacting State, the obligations, duties, powers or jurisdiction sought to be conferred by that provision upon the Commission shall be ineffective as to that Compacting State, and those obligations, duties, powers or jurisdiction shall remain in the Compacting State and shall be exercised by the agency thereof to which those obligations, duties, powers or jurisdiction are delegated by law in effect at the time this Compact becomes effective.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1"}},"ancestry":[{"id":51806,"edition_id":2,"name":"Interstate Insurance Product Regulation Compact","identifier":"62","label":"chapter","depth":2,"order_by":64,"parent_id":51644,"metadata":{"child_laws":2,"child_structures":0},"date_created":"2026-08-02 02:49:12","date_modified":"2026-08-02 12:33:22","permalink":{"id":1445293,"object_type":"structure","relational_id":51806,"identifier":"62","token":"38.2\/62","url":"\/38.2\/62\/","edition_id":2,"permalink":0,"preferred":1}},{"id":51644,"edition_id":2,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":88,"parent_id":null,"metadata":{"child_laws":1890,"child_structures":173},"date_created":"2026-08-02 02:45:30","date_modified":"2026-08-02 12:32:55","permalink":{"id":1437663,"object_type":"structure","relational_id":51644,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":362938,"structure_id":51806,"section_number":"38.2-6200","catch_line":"Form of Compact","url":"\/38.2-6200\/","token":"38.2\/62\/38.2-6200","metadata":false},{"id":362939,"structure_id":51806,"section_number":"38.2-6201","catch_line":"Appointment of representative","url":"\/38.2-6201\/","token":"38.2\/62\/38.2-6201","metadata":false}],"next_section":{"id":362939,"structure_id":51806,"section_number":"38.2-6201","catch_line":"Appointment of representative","url":"\/38.2-6201\/","token":"38.2\/62\/38.2-6201","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-6200\/","history_text":"

This law was first created in 2004. The record of its establishment is cataloged in chapter 761<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":false,"permalink":{"id":1445295,"object_type":"law","relational_id":362938,"identifier":"38.2-6200","token":"38.2\/62\/38.2-6200","url":"\/38.2-6200\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/38.2-6200\/","token":"38.2\/62\/38.2-6200","dublin_core":{"Title":"Form of Compact","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-6200","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

The General Assembly hereby enacts, and the Commonwealth of Virginia hereby enters into, the Interstate Insurance<\/span> Product<\/span> Regulation Compact with any and all states legally joining therein according to its terms, in the form substantially as follows:

\t\tArticle I.

\t\tPurposes.

\t\tThe purposes of this Compact are, through means of joint and cooperative action among the Compacting States<\/span>:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> To promote and protect the interest of consumers of individual and group annuity, life insurance<\/span>, disability income and long-term care insurance<\/span> products<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> To develop uniform standards<\/span> for insurance<\/span> products<\/span> covered under the Compact; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> To establish a central clearinghouse to receive and provide prompt review of insurance<\/span> products<\/span> covered under the Compact and, in certain cases, advertisements<\/span> related thereto, submitted by insurers<\/span> authorized to do business in one or more Compacting States<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> To give appropriate regulatory approval to those product<\/span> filings and advertisements<\/span> satisfying the applicable uniform standard<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> To improve coordination of regulatory resources and expertise between state<\/span> insurance<\/span> departments regarding the setting of uniform standards<\/span> and review of insurance<\/span> products<\/span> covered under the Compact; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> To create the Interstate Insurance Product Regulation Commission<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> To perform these and such other related functions as may be consistent with the state<\/span> regulation of the business of insurance.\n\t\t\tArticle II.

\t\t\tDefinitions.

\t\t\tFor purposes of this Compact: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> “Advertisement<\/span>” means any material<\/span> designed to create public interest in a Product, or induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replace, or retain a policy, as more specifically defined in the Rules<\/span> and Operating Procedures<\/span> of the Commission. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> “Bylaws<\/span>” mean those bylaws<\/span> established by the Commission for its governance, or for directing or controlling the Commission’s actions or conduct. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> “Compacting State<\/span>” means any State which has enacted this Compact legislation and which has not withdrawn pursuant to Article XIV, Section 1, or been terminated pursuant to Article XIV, Section 2. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> “Commission” means the “Interstate Insurance Product Regulation Commission<\/span>” established by this Compact. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> “Commissioner<\/span>” means the chief insurance regulatory official of a State including, but not limited to, commissioner<\/span>, superintendent, director, or administrator. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> “Domiciliary State<\/span>” means the state in which an Insurer<\/span> is incorporated or organized; or, in the case of an alien Insurer<\/span>, its state of entry. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> “Insurer<\/span>” means any entity licensed by a State to issue<\/span> contracts<\/span> of insurance for any of the lines of insurance covered by this Act. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> “Member<\/span>” means the person<\/span> chosen by a Compacting State<\/span> as its representative to the Commission, or his or her designee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> “Non-compacting State<\/span><\/span>” means any State which is not at the time a Compacting State<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> “Operating Procedures<\/span>” mean procedures promulgated by the Commission implementing a Rule<\/span>, Uniform Standard<\/span> or a provision of this Compact. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> “Product” means the form of a policy or contract<\/span>, including any application, endorsement, or related form which is attached to and made a part of the policy or contract<\/span>, and any evidence<\/span> of coverage or certificate, for an individual or group annuity, life insurance, disability income or long-term care insurance product that an Insurer<\/span> is authorized to issue<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> “Rule<\/span>” means a statement of general or particular applicability and future effect promulgated by the Commission, including a Uniform Standard<\/span> developed pursuant to Article VII of this Compact, designed to implement, interpret, or prescribe law<\/span> or policy or describing the organization, procedure, or practice requirements of the Commission, which shall have the force and effect of law<\/span> in the Compacting States<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> “State” means any state, district or territory of the United States of America. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

14.<\/span> “Third-Party<\/span> Filer<\/span>” means an entity that submits a Product filing to the Commission on behalf of an Insurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

15.<\/span> “Uniform Standard<\/span>” means a standard adopted by the Commission for a Product line, pursuant to Article VII of this Compact, and shall include all of the Product requirements in aggregate; provided, that each Uniform Standard<\/span> shall be construed, whether express or implied, to prohibit the use of any inconsistent, misleading or ambiguous provisions in a Product and the form of the Product made available to the public shall not be unfair, inequitable or against public policy as determined by the Commission.\n\t\t\tArticle III.

\t\t\tEstablishment of the Commission and Venue<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The Compacting States<\/span> hereby create and establish a joint public agency known as the “Interstate Insurance Product Regulation Commission<\/span>.” Pursuant to Article IV, the Commission will have the power to develop Uniform Standards<\/span> for Product lines, receive and provide prompt review of Products<\/span> filed therewith, and give approval to those Product filings satisfying applicable Uniform Standards<\/span>; provided, it is not intended for the Commission to be the exclusive entity for receipt and review of insurance product filings. Nothing herein shall prohibit any Insurer<\/span> from filing its product in any State wherein the Insurer<\/span> is licensed to conduct the business of insurance; and any such filing shall be subject to the laws<\/span> of the State where filed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Commission is a body corporate and politic, and an instrumentality of the Compacting States<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The Commission is solely responsible for its liabilities except as otherwise specifically provided in this Compact. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Venue<\/span> is proper and judicial proceedings by or against the Commission shall be brought solely and exclusively in a court<\/span> of competent jurisdiction<\/span> where the principal office of the Commission is located.\n\t\t\tArticle IV.

\t\t\tPowers of the Commission.

\t\t\tThe Commission shall have the following powers: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> To promulgate Rules<\/span>, pursuant to Article VII of this Compact, which shall have the force and effect of law<\/span> and shall be binding in the Compacting States<\/span> to the extent and in the manner provided in this Compact; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> To exercise its rule<\/span>-making authority and establish reasonable Uniform Standards<\/span> for Products<\/span> covered under the Compact, and Advertisement<\/span> related thereto, which shall have the force and effect of law<\/span> and shall be binding in the Compacting States<\/span>, but only for those Products<\/span> filed with the Commission, provided, that a Compacting State<\/span> shall have the right to opt out of such Uniform Standard<\/span> pursuant to Article VII, to the extent and in the manner provided in this Compact, and, provided further, that any Uniform Standard<\/span> established by the Commission for long-term care insurance products<\/span> may provide the same or greater protections for consumers as, but shall not provide less than, those protections set forth in the National Association of Insurance Commissioners<\/span>’ Long-Term Care Insurance Model Act and Long-Term Care Insurance Model Regulation, respectively, adopted as of 2001. The Commission shall consider whether any subsequent amendments to the NAIC Long-Term Care Insurance Model Act or Long-Term Care Insurance Model Regulation adopted by the NAIC require amending of the Uniform Standards<\/span> established by the Commission for long-term care insurance products<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> To receive and review in an expeditious manner Products<\/span> filed with the Commission, and rate<\/span> filings for disability income and long-term care insurance Products<\/span>, and give approval of those Products<\/span> and rate<\/span> filings that satisfy the applicable Uniform Standard<\/span>, where such approval shall have the force and effect of law<\/span> and be binding on the Compacting States<\/span> to the extent and in the manner provided in the Compact; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> To receive and review in an expeditious manner Advertisement<\/span> relating to long-term care insurance products<\/span> for which Uniform Standards<\/span> have been adopted by the Commission, and give approval to all Advertisement<\/span> that satisfies the applicable Uniform Standard<\/span>. For any product covered under this Compact, other than long-term care insurance products<\/span>, the Commission shall have the authority to require an insurer<\/span> to submit all or any part of its Advertisement<\/span> with respect to that product for review or approval prior to use, if the Commission determines that the nature of the product is such that an Advertisement<\/span> of the product could have the capacity or tendency to mislead the public. The actions of Commission as provided in this section shall have the force and effect of law<\/span> and shall be binding in the Compacting States<\/span> to the extent and in the manner provided in the Compact; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> To exercise its rule<\/span>-making authority and designate Products<\/span> and Advertisement<\/span> that may be subject to a self-certification process without the need for prior approval by the Commission; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> To promulgate Operating Procedures<\/span>, pursuant to Article VII of this Compact, which shall be binding in the Compacting States<\/span> to the extent and in the manner provided in this Compact; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> To bring and prosecute<\/span> legal proceedings or actions in its name as the Commission; provided, that the standing of any state insurance department to sue or be sued under applicable law<\/span> shall not be affected; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> To issue<\/span> subpoenas<\/span> requiring the attendance and testimony<\/span> of witnesses and the production of evidence<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> To establish and maintain offices; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> To purchase and maintain insurance and bonds<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> To borrow, accept or contract<\/span> for services of personnel, including, but not limited to, employees of a Compacting State<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

12.<\/span> To hire employees, professionals or specialists, and elect or appoint officers, and to fix their compensation, define their duties and give them appropriate authority to carry out the purposes of the Compact, and determine their qualifications; and to establish the Commission’s personnel policies and programs relating to, among other things, conflicts of interest, rates<\/span><\/span> of compensation and qualifications of personnel; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

13.<\/span> To accept any and all appropriate donations and grants of money, equipment, supplies, materials<\/span> and services, and to receive, utilize and dispose of the same; provided that at all times the Commission shall strive to avoid any appearance<\/span> of impropriety; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

14.<\/span> To lease, purchase, accept appropriate gifts or donations of, or otherwise to own, hold, improve or use, any property, real, personal or mixed; provided that at all times the Commission shall strive to avoid any appearance<\/span> of impropriety; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

15.<\/span> To sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise dispose of any property, real, personal or mixed; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

16.<\/span> To remit filing fees to Compacting States<\/span> as may be set forth in the Bylaws<\/span>, Rules<\/span> or Operating Procedures<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

17.<\/span> To enforce compliance by Compacting States<\/span> with Rules<\/span>, Uniform Standards<\/span>, Operating Procedures<\/span> and Bylaws<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

18.<\/span> To provide for dispute resolution among Compacting States<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

19.<\/span> To advise Compacting States<\/span> on issues<\/span> relating to Insurers<\/span> domiciled or doing business in Non-compacting jurisdictions<\/span>, consistent with the purposes of this Compact; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

20.<\/span> To provide advice and training to those personnel in state insurance departments responsible for product review, and to be a resource for state insurance departments; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

21.<\/span> To establish a budget and make expenditures; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

22.<\/span> To borrow money; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

23.<\/span> To appoint committees, including advisory committees comprising Members<\/span>, state insurance regulators, state legislators or their representatives, insurance industry and consumer representatives, and such other interested persons<\/span> as may be designated in the Bylaws<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

24.<\/span> To provide and receive information from, and to cooperate with, law<\/span>-enforcement agencies; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

25.<\/span> To adopt and use a corporate seal; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

26.<\/span> To perform such other functions as may be necessary or appropriate to achieve the purposes of this Compact consistent with the state regulation of the business of insurance.\n\t\t\tArticle V.

\t\t\tOrganization of the Commission. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Membership, Voting and Bylaws<\/span>.\n\t\t\ta. Each Compacting State<\/span> shall have and be limited to one Member<\/span>. Each Member<\/span> shall be qualified to serve in that capacity pursuant to applicable law<\/span> of the Compacting State<\/span>. Any Member<\/span> may be removed or suspended from office as provided by the law<\/span> of the State from which he or she shall be appointed. Any vacancy occurring in the Commission shall be filled in accordance with the laws<\/span> of the Compacting State<\/span> wherein the vacancy exists. Nothing herein shall be construed to affect the manner in which a Compacting State<\/span> determines the election or appointment and qualification of its own Commissioner<\/span>.

\t\t\tb. Each Member<\/span> shall be entitled to one vote and shall have an opportunity to participate in the governance of the Commission in accordance with the Bylaws<\/span>. Notwithstanding any provision herein to the contrary, no action of the Commission with respect to the promulgation of a Uniform Standard<\/span> shall be effective unless two-thirds of the Members<\/span> vote in favor thereof.

\t\t\tc. The Commission shall, by a majority of the Members<\/span>, prescribe Bylaws<\/span> to govern its conduct as may be necessary or appropriate to carry out the purposes, and exercise the powers, of the Compact, including, but not limited to:

\t\t\ti. Establishing the fiscal year of the Commission;

\t\t\tii. Providing reasonable procedures for appointing and electing members<\/span>, as well as holding meetings, of the Management Committee;

\t\t\tiii. Providing reasonable standards and procedures: (i) for the establishment and meetings of other committees, and (ii) governing any general or specific delegation of any authority or function of the Commission;

\t\t\tiv. Providing reasonable procedures for calling and conducting meetings of the Commission that consists of a majority of Commission members<\/span>, ensuring reasonable advance notice of each such meeting, and providing for the right of citizens to attend each such meeting with enumerated exceptions designed to protect the public’s interest, the privacy of individuals, and insurers<\/span>’ proprietary information, including trade secrets. The Commission may meet in camera<\/span> only after a majority of the entire membership votes to close a meeting en toto or in part. As soon as practicable, the Commission must make public (i) a copy of the vote to close the meeting revealing the vote of each Member<\/span> with no proxy votes allowed, and (ii) votes taken during such meeting;

\t\t\tv. Establishing the titles, duties and authority and reasonable procedures for the election of the officers of the Commission;

\t\t\tvi. Providing reasonable standards and procedures for the establishment of the personnel policies and programs of the Commission. Notwithstanding any civil service or other similar laws<\/span> of any Compacting State<\/span>, the Bylaws<\/span> shall exclusively govern the personnel policies and programs of the Commission;

\t\t\tvii. Promulgating a code of ethics to address permissible and prohibited activities of Commission members<\/span> and employees; and

\t\t\tviii. Providing a mechanism for winding up the operations of the Commission and the equitable<\/span> disposition<\/span> of any surplus funds that may exist after the termination of the Compact after the payment and\/or reserving of all of its debts and obligations.

\t\t\td. The Commission shall publish its Bylaws<\/span> in a convenient form and file a copy thereof and a copy of any amendment thereto, with the appropriate agency or officer in each of the Compacting States<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Management Committee, Officers and Personnel.\n\t\t\ta. A Management Committee comprising no more than 14 members<\/span> shall be established as follows:

\t\t\ti. One member<\/span> from each of the six Compacting States<\/span> with the largest premium volume for individual and group annuities, life, disability income, and long-term care insurance products<\/span>, determined from the records of the NAIC for the prior year;

\t\t\tii. Four members<\/span> from those Compacting States<\/span> with at least two percent of the market based on the premium volume described above, other than the six Compacting States<\/span> with the largest premium volume, selected on a rotating basis as provided in the Bylaws<\/span>; and

\t\t\tiii. Four members<\/span> from those Compacting States<\/span> with less than two percent of the market, based on the premium volume described above, with one selected from each of the four zone regions of the NAIC as provided in the Bylaws<\/span>.

\t\t\tb. The Management Committee shall have such authority and duties as may be set forth in the Bylaws<\/span>, including but not limited to:

\t\t\ti. Managing the affairs of the Commission in a manner consistent with the Bylaws<\/span> and purposes of the Commission;

\t\t\tii. Establishing and overseeing an organizational structure within, and appropriate procedures for, the Commission to provide for the creation of Uniform Standards<\/span> and other Rules<\/span>, receipt and review of product filings, administrative and technical support functions, review of decisions regarding the disapproval of a product filing, and the review of elections made by a Compacting State<\/span> to opt out of a Uniform Standard<\/span>; provided that a Uniform Standard<\/span> shall not be submitted to the Compacting States<\/span> for adoption unless approved by two-thirds of the members<\/span> of the Management Committee;

\t\t\tiii. Overseeing the offices of the Commission; and

\t\t\tiv. Planning, implementing, and coordinating communications and activities with other state, federal and local government organizations in order<\/span> to advance the goals of the Commission.

\t\t\tc. The Commission shall elect annually officers from the Management Committee, with each having such authority and duties as may be specified in the Bylaws<\/span>.

\t\t\td. The Management Committee may, subject to the approval of the Commission, appoint or retain an executive director for such period, upon such terms and conditions and for such compensation as the Commission may deem appropriate. The executive director shall serve as secretary to the Commission, but shall not be a Member<\/span> of the Commission. The executive director shall hire and supervise such other staff as may be authorized by the Commission. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Legislative and Advisory Committees.\n\t\t\ta. A legislative committee comprising state legislators or their designees shall be established to monitor the operations of, and make recommendations to, the Commission, including the Management Committee; provided that the manner of selection and term of any legislative committee member<\/span> shall be as set forth in the Bylaws<\/span>. Prior to the adoption by the Commission of any Uniform Standard<\/span>, revision to the Bylaws<\/span>, annual budget, or other significant matter as may be provided in the Bylaws<\/span>, the Management Committee shall consult with and report to the legislative committee.

\t\t\tb. The Commission shall establish two advisory committees, one of which shall comprise consumer representatives independent of the insurance industry, and the other comprising insurance industry representatives.

\t\t\tc. The Commission may establish additional advisory committees as its Bylaws<\/span> may provide for the carrying out of its functions. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Corporate Records of the Commission.\n\t\t\tThe Commission shall maintain its corporate books and records in accordance with the Bylaws<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Qualified Immunity, Defense and Indemnification.\n\t\t\ta. The Members<\/span>, officers, executive director, employees and representatives of the Commission shall be immune from suit and liability, either personally or in their official capacity, for any claim for damage to or loss of property or personal injury or other civil liability caused by or arising out of any actual or alleged act, error or omission that occurred, or that the person<\/span> against whom the claim is made had a reasonable basis for believing occurred within the scope of Commission employment, duties or responsibilities; provided, that nothing in this paragraph shall be construed to protect any such person<\/span> from suit and\/or liability for any damage, loss, injury or liability caused by the intentional or willful and wanton misconduct of that person<\/span>.

\t\t\tb. The Commission shall defend any Member<\/span>, officer, executive director, employee or representative of the Commission in any civil action<\/span> seeking to impose liability arising out of any actual or alleged act, error or omission that occurred within the scope of Commission employment, duties or responsibilities, or that the person<\/span> against whom the claim is made had a reasonable basis for believing occurred within the scope of Commission employment, duties or responsibilities; provided, that nothing herein shall be construed to prohibit that person<\/span> from retaining his or her own counsel<\/span>; and provided further, that the actual or alleged act, error or omission did not result from that person<\/span>’s intentional or willful and wanton misconduct.

\t\t\tc. The Commission shall indemnify and hold harmless any Member<\/span>, officer, executive director, employee or representative of the Commission for the amount of any settlement<\/span> or judgment<\/span> obtained against that person<\/span> arising out of any actual or alleged act, error or omission that occurred within the scope of Commission employment, duties or responsibilities; or that such person<\/span> had a reasonable basis for believing occurred within the scope of Commission employment, duties or responsibilities, provided, that the actual or alleged act, error or omission did not result from the intentional or willful and wanton misconduct of that person<\/span>.

\t\t\tArticle VI.

\t\t\tMeetings and Acts of the Commission. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The Commission shall meet and take such actions as are consistent with the provisions of this Compact and the Bylaws<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Each Member<\/span> of the Commission shall have the right and power to cast a vote to which that Compacting State<\/span> is entitled and to participate in the business and affairs of the Commission. A Member<\/span> shall vote in person<\/span> or by such other means as provided in the Bylaws<\/span>. The Bylaws<\/span> may provide for Members<\/span>’ participation in meetings by telephone or other means of communication. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The Commission shall meet at least once during each calendar year. Additional meetings shall be held as set forth in the Bylaws<\/span>.\n\t\t\tArticle VII.

\t\t\tRules<\/span> and Operating Procedures<\/span>: Rulemaking Functions of the Commission and Opting Out of Uniform Standards<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Rulemaking Authority. The Commission shall promulgate reasonable Rules<\/span>, including Uniform Standards<\/span>, and Operating Procedures<\/span> in order<\/span> to effectively and efficiently achieve the purposes of this Compact. Notwithstanding the foregoing, in the event the Commission exercises its rulemaking authority in a manner that is beyond the scope of the purposes of this Act, or the powers granted hereunder, then such an action by the Commission shall be invalid and have no force and effect. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Rulemaking Procedure. Rules<\/span> and Operating Procedures<\/span> shall be made pursuant to a rulemaking process that conforms to the Model State Administrative Procedure Act of 1981, as amended, as may be appropriate to the operations of the Commission. Before the Commission adopts a Uniform Standard<\/span>, the Commission shall give written notice to the relevant state legislative committee(s) in each Compacting State<\/span> responsible for insurance issues<\/span> of its intention to adopt the Uniform Standard<\/span>. The Commission in adopting a Uniform Standard<\/span> shall consider fully all submitted materials<\/span> and issue<\/span> a concise explanation of its decision. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Effective Date and Opt Out of a Uniform Standard<\/span>. A Uniform Standard<\/span> shall become effective 90 days after its promulgation by the Commission or such later date as the Commission may determine; provided, however, that a Compacting State<\/span> may opt out of a Uniform Standard<\/span> as provided in this Article. “Opt out” shall be defined as any action by a Compacting State<\/span> to decline to adopt or participate in a promulgated Uniform Standard<\/span>. All other Rules<\/span> and Operating Procedures<\/span>, and amendments thereto, shall become effective as of the date specified in each Rule<\/span>, Operating Procedure or amendment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Opt Out Procedure. A Compacting State<\/span> may opt out of a Uniform Standard<\/span>, either by legislation or regulation duly promulgated by the Insurance Department under the Compacting State<\/span>’s Administrative Procedure Act or duly promulgated pursuant to the Compacting State<\/span>’s law<\/span>. If a Compacting State<\/span> elects to opt out of a Uniform Standard<\/span> by regulation, it must (a) give written notice to the Commission no later than 10 business days after the Uniform Standard<\/span> is promulgated, or at the time the State becomes a Compacting State<\/span> and (b) find that the Uniform Standard<\/span> does not provide reasonable protections to the citizens of the State, given the conditions in the State. The Commissioner<\/span> or tribunal shall make specific findings<\/span> of fact<\/span> and conclusions of law<\/span>, based on a preponderance of the evidence<\/span>, detailing the conditions in the State which warrant a departure from the Uniform Standard<\/span> and determining that the Uniform Standard<\/span> would not reasonably protect the citizens of the State. The Commissioner<\/span> or tribunal must consider and balance the following factors and find that the conditions in the State and needs of the citizens of the State outweigh: (i) the intent<\/span> of the legislature to participate in, and the benefits of, an interstate agreement to establish national uniform consumer protections for the Products<\/span> subject to this Act; and (ii) the presumption<\/span> that a Uniform Standard<\/span> adopted by the Commission provides reasonable protections to consumers of the relevant Product.\n\t\t\tNotwithstanding the foregoing, a Compacting State<\/span> may, at the time of its enactment of this Compact, prospectively opt out of all Uniform Standards<\/span> involving long-term care insurance products<\/span> by expressly providing for such opt out in the enacted Compact, and such an opt out shall not be treated as a material<\/span> variance in the offer or acceptance of any State to participate in this Compact. Such an opt out shall be effective at the time of enactment of this Compact by the Compacting State<\/span> and shall apply to all existing Uniform Standards<\/span> involving long-term care insurance products<\/span> and those subsequently promulgated. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Effect of Opt Out. If a Compacting State<\/span> elects to opt out of a Uniform Standard<\/span>, the Uniform Standard<\/span> shall remain applicable in the Compacting State<\/span> electing to opt out until such time the opt out legislation is enacted into law<\/span> or the regulation opting out becomes effective.\n\t\t\tOnce the opt out of a Uniform Standard<\/span> by a Compacting State<\/span> becomes effective as provided under the laws<\/span> of that State, the Uniform Standard<\/span> shall have no further force and effect in that State unless and until the legislation or regulation implementing the opt out is repealed or otherwise becomes ineffective under the laws<\/span> of the State. If a Compacting State<\/span> opts out of a Uniform Standard<\/span> after the Uniform Standard<\/span> has been made effective in that State, the opt out shall have the same prospective effect as provided under Article XIV for withdrawals. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Stay<\/span> of Uniform Standard<\/span>. If a Compacting State<\/span> has formally initiated the process of opting out of a Uniform Standard<\/span> by regulation, and while the regulatory opt out is pending, the Compacting State<\/span> may petition<\/span> the Commission, at least 15 days before the effective date of the Uniform Standard<\/span>, to stay<\/span> the effectiveness of the Uniform Standard<\/span> in that State. The Commission may grant a stay<\/span> if it determines the regulatory opt out is being pursued in a reasonable manner and there is a likelihood of success. If a stay<\/span> is granted or extended by the Commission, the stay<\/span> or extension thereof may postpone the effective date by up to 90 days, unless affirmatively extended by the Commission; provided, a stay<\/span> may not be permitted to remain in effect for more than one year unless the Compacting State<\/span> can show extraordinary circumstances which warrant a continuance<\/span> of the stay<\/span>, including, but not limited to, the existence of a legal challenge which prevents the Compacting State<\/span> from opting out. A stay<\/span> may be terminated by the Commission upon notice that the rulemaking process has been terminated. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Not later than 30 days after a Rule<\/span> or Operating Procedure is promulgated, any person<\/span> may file a petition<\/span> for judicial review of the Rule<\/span> or Operating Procedure; provided, that the filing of such a petition<\/span> shall not stay<\/span> or otherwise prevent the Rule<\/span> or Operating Procedure from becoming effective unless the court<\/span> finds that the petitioner has a substantial likelihood of success. The court<\/span> shall give deference to the actions of the Commission consistent with applicable law<\/span> and shall not find the Rule<\/span> or Operating Procedure to be unlawful if the Rule<\/span> or Operating Procedure represents a reasonable exercise of the Commission’s authority.\n\t\t\tArticle VIII.

\t\t\tCommission Records and Enforcement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The Commission shall promulgate Rules<\/span> establishing conditions and procedures for public inspection and copying of its information and official records, except such information and records involving the privacy of individuals and insurers<\/span>’ trade secrets. The Commission may promulgate additional Rules<\/span> under which it may make available to federal and state agencies, including law<\/span>-enforcement agencies, records and information otherwise exempt from disclosure, and may enter into agreements with such agencies to receive or exchange information or records subject to nondisclosure and confidentiality provisions. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Except as to privileged records, data and information, the laws<\/span> of any Compacting State<\/span> pertaining to confidentiality or nondisclosure shall not relieve any Compacting State<\/span> Commissioner<\/span> of the duty to disclose any relevant records, data, or information to the Commission; provided, that disclosure to the Commission shall not be deemed to waive<\/span> or otherwise affect any confidentiality requirement; and further provided, that, except as otherwise expressly provided in this Act, the Commission shall not be subject to the Compacting State<\/span>’s laws<\/span> pertaining to confidentiality and nondisclosure with respect to records, data, and information in its possession<\/span>. Confidential information of the Commission shall remain confidential after such information is provided to any Commissioner<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The Commission shall monitor Compacting States<\/span> for compliance with duly adopted Bylaws<\/span>, Rules<\/span>, including Uniform Standards<\/span>, and Operating Procedures<\/span>. The Commission shall notify any non-complying Compacting State<\/span> in writing of its noncompliance with Commission Bylaws<\/span>, Rules<\/span> or Operating Procedures<\/span>. If a noncomplying Compacting State<\/span> fails to remedy its noncompliance within the time specified in the notice of noncompliance, the Compacting State<\/span> shall be deemed to be in default<\/span> as set forth in Article XIV. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The Commissioner<\/span> of any State in which an Insurer<\/span> is authorized to do business, or is conducting the business of insurance, shall continue to exercise his or her authority to oversee the market regulation of the activities of the Insurer<\/span> in accordance with the provisions of the State’s law<\/span>. The Commissioner<\/span>’s enforcement of compliance with the Compact is governed by the following provisions:\n\t\t\ta. With respect to the Commissioner<\/span>’s market regulation of a Product or Advertisement<\/span> that is approved or certified to the Commission, the content of the Product or Advertisement<\/span> shall not constitute a violation of the provisions, standards or requirements of the Compact except upon a final order<\/span> of the Commission, issued at the request of a Commissioner<\/span> after prior notice to the Insurer<\/span> and an opportunity for hearing<\/span> before the Commission.

\t\t\tb. Before a Commissioner<\/span> may bring an action for violation of any provision, standard or requirement of the Compact relating to the content of an Advertisement<\/span> not approved or certified to the Commission, the Commission, or an authorized Commission officer or employee, must authorize the action. However, authorization pursuant to this paragraph does not require notice to the Insurer<\/span>, opportunity for hearing<\/span> or disclosure of requests for authorization or records of the Commission’s action on such requests.

\t\t\tArticle IX.

\t\t\tDispute Resolution.

\t\t\tThe Commission shall attempt, upon the request of a Member<\/span>, to resolve any disputes or other issues<\/span> that are subject to this Compact and which may arise between two or more Compacting States<\/span>, or between Compacting States<\/span> and Non-compacting States<\/span><\/span>, and the Commission shall promulgate an Operating Procedure providing for resolution of such disputes.

\t\t\tArticle X.

\t\t\tProduct Filing and Approval. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Insurers<\/span> and Third-Party<\/span> Filers<\/span> seeking to have a Product approved by the Commission shall file the Product with, and pay applicable filing fees to, the Commission. Nothing in this Act shall be construed to restrict or otherwise prevent an insurer<\/span> from filing its Product with the insurance department in any State wherein the insurer<\/span> is licensed to conduct the business of insurance, and such filing shall be subject to the laws<\/span> of the States where filed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Commission shall establish appropriate filing and review processes and procedures pursuant to Commission Rules<\/span> and Operating Procedures<\/span>. Notwithstanding any provision herein to the contrary, the Commission shall promulgate Rules<\/span> to establish conditions and procedures under which the Commission will provide public access to Product filing information. In establishing such Rules<\/span>, the Commission shall consider the interests of the public in having access to such information, as well as protection of personal medical and financial information and trade secrets, that may be contained in a Product filing or supporting information. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Any Product approved by the Commission may be sold or otherwise issued in those Compacting States<\/span> for which the Insurer<\/span> is legally authorized to do business.\n\t\t\tArticle XI.

\t\t\tReview of Commission Decisions Regarding Filings. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Not later than 30 days after the Commission has given notice of a disapproved Product or Advertisement<\/span> filed with the Commission, the Insurer<\/span> or Third Party<\/span> Filer whose filing was disapproved may appeal<\/span> the determination to a review panel<\/span> appointed by the Commission. The Commission shall promulgate Rules<\/span> to establish procedures for appointing such review panels<\/span> and provide for notice and hearing<\/span>. An allegation<\/span> that the Commission, in disapproving a Product or Advertisement<\/span> filed with the Commission, acted arbitrarily, capriciously, or in a manner that is an abuse of discretion or otherwise not in accordance with the law<\/span>, is subject to judicial review in accordance with Article III, section 4. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Commission shall have authority to monitor, review and reconsider Products<\/span> and Advertisement<\/span> subsequent to their filing or approval upon a finding<\/span> that the Product does not meet the relevant Uniform Standard<\/span>. Where appropriate, the Commission may withdraw or modify its approval after proper notice and hearing<\/span>, subject to the appeal<\/span> process in section 1 above.\n\t\t\tArticle XII.

\t\t\tFinance. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The Commission shall pay or provide for the payment of the reasonable expenses of its establishment and organization. To fund the cost of its initial operations, the Commission may accept contributions and other forms of funding from the National Association of Insurance Commissioners<\/span>, Compacting States<\/span> and other sources. Contributions and other forms of funding from other sources shall be of such a nature that the independence of the Commission concerning the performance of its duties shall not be compromised. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Commission shall collect a filing fee from each Insurer<\/span> and Third Party<\/span> Filer filing a Product with the Commission to cover the cost of the operations and activities of the Commission and its staff in a total amount sufficient to cover the Commission’s annual budget. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The Commission’s budget for a fiscal year shall not be approved until it has been subject to notice and comment as set forth in Article VII of this Compact. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The Commission shall be exempt from all taxation in and by the Compacting States<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The Commission shall not pledge the credit of any Compacting State<\/span>, except by and with the appropriate legal authority of that Compacting State<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The Commission shall keep complete and accurate accounts of all its internal receipts, including grants and donations, and disbursements of all funds under its control. The internal financial accounts of the Commission shall be subject to the accounting procedures established under its Bylaws<\/span>. The financial accounts and reports including the system of internal controls and procedures of the Commission shall be audited annually by an independent certified public accountant. Upon the determination of the Commission, but no less frequently than every three years, the review of the independent auditor shall include a management and performance audit of the Commission. The Commission shall make an Annual Report to the Governor and legislature of the Compacting States<\/span>, which shall include a report of the independent audit. The Commission’s internal accounts shall not be confidential and such materials<\/span> may be shared with the Commissioner<\/span> of any Compacting State<\/span> upon request; provided, however, that any work papers related to any internal or independent audit and any information regarding the privacy of individuals and insurers<\/span>’ proprietary information, including trade secrets, shall remain confidential. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> No Compacting State<\/span> shall have any claim to or ownership of any property held by or vested in the Commission or to any Commission funds held pursuant to the provisions of this Compact.\n\t\t\tArticle XIII.

\t\t\tCompacting States<\/span>, Effective Date and Amendment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Any State is eligible to become a Compacting State<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Compact shall become effective and binding upon legislative enactment of the Compact into law<\/span> by two Compacting States<\/span>; provided, the Commission shall become effective for purposes of adopting Uniform Standards<\/span> for, reviewing, and giving approval or disapproval of, Products<\/span> filed with the Commission that satisfy applicable Uniform Standards<\/span> only after 26 States are Compacting States<\/span> or, alternatively, by States representing greater than 40 percent of the premium volume for life insurance, annuity, disability income, and long-term care insurance products<\/span>, based on records of the NAIC for the prior year. Thereafter, it shall become effective and binding as to any other Compacting State<\/span> upon enactment of the Compact into law<\/span> by that State. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Amendments to the Compact may be proposed by the Commission for enactment by the Compacting States<\/span>. No amendment shall become effective and binding upon the Commission and the Compacting States<\/span> unless and until all Compacting States<\/span> enact the amendment into law<\/span>.\n\t\t\tArticle XIV.

\t\t\tWithdrawal, Default<\/span> and Termination. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Withdrawal.\n\t\t\ta. Once effective, the Compact shall continue in force and remain binding upon each and every Compacting State<\/span>; provided, that a Compacting State<\/span> may withdraw from the Compact (Withdrawing State) by enacting a statute<\/span> specifically repealing the statute<\/span> which enacted the Compact into law<\/span>.

\t\t\tb. The effective date of withdrawal is the effective date of the repealing statute<\/span>. However, the withdrawal shall not apply to any Product filings approved or self-certified, or any Advertisement<\/span> of such Products<\/span>, on the date the repealing statute<\/span> becomes effective, except by mutual agreement of the Commission and the Withdrawing State unless the approval is rescinded by the Withdrawing State as provided in subsection e of this section.

\t\t\tc. The Commissioner<\/span> of the Withdrawing State shall immediately notify the Management Committee in writing upon the introduction of legislation repealing this Compact in the Withdrawing State.

\t\t\td. The Commission shall notify the other Compacting States<\/span> of the introduction of such legislation within 10 days after its receipt of notice thereof.

\t\t\te. The Withdrawing State is responsible for all obligations, duties and liabilities incurred through the effective date of withdrawal, including any obligations, the performance of which extend beyond the effective date of withdrawal, except to the extent those obligations may have been released or relinquished by mutual agreement of the Commission and the Withdrawing State. The Commission’s approval of Products<\/span> and Advertisement<\/span> prior to the effective date of withdrawal shall continue to be effective and be given full force and effect in the Withdrawing State, unless formally rescinded by the Withdrawing State in the same manner as provided by the laws<\/span> of the Withdrawing State for the prospective disapproval of Products<\/span> or Advertisement<\/span> previously approved under State law<\/span>.

\t\t\tf. Reinstatement following withdrawal of any Compacting State<\/span> shall occur upon the effective date of the Withdrawing State reenacting the Compact. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Default<\/span>.\n\t\t\ta. If the Commission determines that any Compacting State<\/span> has at any time defaulted (Defaulting State) in the performance of any of its obligations or responsibilities under this Compact, the Bylaws<\/span> or duly promulgated Rules<\/span> or Operating Procedures<\/span>, then, after notice and hearing<\/span> as set forth in the Bylaws<\/span>, all rights, privileges<\/span> and benefits conferred by this Compact on the Defaulting State shall be suspended from the effective date of default<\/span> as fixed by the Commission. The grounds for default<\/span> include, but are not limited to, failure of a Compacting State<\/span> to perform its obligations or responsibilities, and any other grounds designated in Commission Rules<\/span>. The Commission shall immediately notify the Defaulting State in writing of the Defaulting State’s suspension pending a cure of the default<\/span>. The Commission shall stipulate the conditions and the time period within which the Defaulting State must cure its default<\/span>. If the Defaulting State fails to cure the default<\/span> within the time period specified by the Commission, the Defaulting State shall be terminated from the Compact and all rights, privileges<\/span> and benefits conferred by this Compact shall be terminated from the effective date of termination.

\t\t\tb. Product approvals by the Commission or Product self-certifications, or any Advertisement<\/span> in connection with such Product, that are in force on the effective date of termination shall remain in force in the Defaulting State in the same manner as if the Defaulting State had withdrawn voluntarily pursuant to paragraph 1 of this Article.

\t\t\tc. Reinstatement following termination of any Compacting State<\/span> requires a reenactment of the Compact. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Dissolution of Compact.\n\t\t\ta. The Compact dissolves effective upon the date of the withdrawal or default<\/span> of the Compacting State<\/span> which reduces membership in the Compact to one Compacting State<\/span>.

\t\t\tb. Upon the dissolution of this Compact, the Compact becomes null and void and shall be of no further force or effect, and the business and affairs of the Commission shall be wound up and any surplus funds shall be distributed in accordance with the Bylaws<\/span>.

\t\t\tArticle XV.

\t\t\tSeverability and Construction. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The provisions of this Compact shall be severable; and if any phrase, clause, sentence, or provision is deemed unenforceable, the remaining provisions of the Compact shall be enforceable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The provisions of this Compact shall be liberally construed to effectuate its purposes.\n\t\t\tArticle XVI.

\t\t\tBinding Effect of Compact and Other Laws<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Other Laws<\/span>.\n\t\t\ta. Nothing herein prevents the enforcement of any other law<\/span> of a Compacting State<\/span>, except as provided in paragraph b of this Article.

\t\t\tb. For any Product approved or certified to the Commission, the Rules<\/span>, Uniform Standards<\/span>, and any other requirements of the Commission shall constitute the exclusive provisions applicable to the content, approval and certification of such Products<\/span>. For Advertisement<\/span> that is subject to the Commission’s authority, any Rule<\/span>, Uniform Standard<\/span> or other requirement of the Commission which governs the content of the Advertisement<\/span> shall constitute the exclusive provision that a Commissioner<\/span> may apply to the content of the Advertisement<\/span>. Notwithstanding the foregoing, no action taken by the Commission shall abrogate or restrict: (i) the access of any person<\/span> to State courts<\/span>; (ii) remedies available under State law<\/span> related to breach of contract<\/span>, tort<\/span>, or other laws<\/span> not specifically directed to the content of the Product; (iii) State law<\/span> relating to the construction of insurance contracts<\/span>; or (iv) the authority of the attorney general<\/span> of the State, including but not limited to maintaining any actions or proceedings, as authorized by law<\/span>.

\t\t\tc. All insurance Products<\/span> filed with individual States shall be subject to the laws<\/span> of those States. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Binding Effect of this Compact.\n\t\t\ta. All lawful actions of the Commission, including all Rules<\/span> and Operating Procedures<\/span> promulgated by the Commission, are binding upon the Compacting States<\/span>.

\t\t\tb. All agreements between the Commission and the Compacting States<\/span> are binding in accordance with their terms.

\t\t\tc. Upon the request of a party<\/span> to a conflict over the meaning or interpretation of Commission actions, and upon a majority vote of the Compacting States<\/span>, the Commission may issue<\/span> advisory opinions<\/span> regarding the meaning or interpretation in dispute.

\t\t\td. In the event any provision of this Compact exceeds the constitutional limits imposed on the legislature of any Compacting State<\/span>, the obligations, duties, powers or jurisdiction<\/span> sought to be conferred by that provision upon the Commission shall be ineffective as to that Compacting State<\/span>, and those obligations, duties, powers or jurisdiction<\/span> shall remain in the Compacting State<\/span> and shall be exercised by the agency thereof to which those obligations, duties, powers or jurisdiction<\/span> are delegated by law<\/span> in effect at the time this Compact becomes effective. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFORM OF COMPACT (\u00a7 38.2-6200)\n\nThe General Assembly hereby enacts, and the Commonwealth of Virginia hereby\nenters into, the Interstate Insurance Product Regulation Compact with any and\nall states legally joining therein according to its terms, in the form\nsubstantially as follows:\t\tArticle I.\t\tPurposes.\t\tThe purposes of this Compact\nare, through means of joint and cooperative action among the Compacting States:\n\n1. To promote and protect the interest of consumers of individual and group\nannuity, life insurance, disability income and long-term care insurance\nproducts;\n\n2. To develop uniform standards for insurance products covered under the\nCompact;\n\n3. To establish a central clearinghouse to receive and provide prompt review of\ninsurance products covered under the Compact and, in certain cases,\nadvertisements related thereto, submitted by insurers authorized to do business\nin one or more Compacting States;\n\n4. To give appropriate regulatory approval to those product filings and\nadvertisements satisfying the applicable uniform standard;\n\n5. To improve coordination of regulatory resources and expertise between state\ninsurance departments regarding the setting of uniform standards and review of\ninsurance products covered under the Compact;\n\n6. To create the Interstate Insurance Product Regulation Commission; and\n\n7. To perform these and such other related functions as may be consistent with\nthe state regulation of the business of insurance.\n\t\t\tArticle II.\t\t\tDefinitions.\t\t\tFor purposes of this Compact:\n\n1. “Advertisement” means any material designed to create public\ninterest in a Product, or induce the public to purchase, increase, modify,\nreinstate, borrow on, surrender, replace, or retain a policy, as more\nspecifically defined in the Rules and Operating Procedures of the Commission.\n\n2. “Bylaws” mean those bylaws established by the Commission for its\ngovernance, or for directing or controlling the Commission’s actions or\nconduct.\n\n3. “Compacting State” means any State which has enacted this Compact\nlegislation and which has not withdrawn pursuant to Article XIV, Section 1, or\nbeen terminated pursuant to Article XIV, Section 2.\n\n4. “Commission” means the “Interstate Insurance Product\nRegulation Commission” established by this Compact.\n\n5. “Commissioner” means the chief insurance regulatory official of a\nState including, but not limited to, commissioner, superintendent, director, or\nadministrator.\n\n6. “Domiciliary State” means the state in which an Insurer is\nincorporated or organized; or, in the case of an alien Insurer, its state of\nentry.\n\n7. “Insurer” means any entity licensed by a State to issue contracts\nof insurance for any of the lines of insurance covered by this Act.\n\n8. “Member” means the person chosen by a Compacting State as its\nrepresentative to the Commission, or his or her designee.\n\n9. “Non-compacting State” means any State which is not at the time a\nCompacting State.\n\n10. “Operating Procedures” mean procedures promulgated by the\nCommission implementing a Rule, Uniform Standard or a provision of this Compact.\n\n11. “Product” means the form of a policy or contract, including any\napplication, endorsement, or related form which is attached to and made a part\nof the policy or contract, and any evidence of coverage or certificate, for an\nindividual or group annuity, life insurance, disability income or long-term care\ninsurance product that an Insurer is authorized to issue.\n\n12. “Rule” means a statement of general or particular applicability\nand future effect promulgated by the Commission, including a Uniform Standard\ndeveloped pursuant to Article VII of this Compact, designed to implement,\ninterpret, or prescribe law or policy or describing the organization, procedure,\nor practice requirements of the Commission, which shall have the force and\neffect of law in the Compacting States.\n\n13. “State” means any state, district or territory of the United\nStates of America.\n\n14. “Third-Party Filer” means an entity that submits a Product\nfiling to the Commission on behalf of an Insurer.\n\n15. “Uniform Standard” means a standard adopted by the Commission\nfor a Product line, pursuant to Article VII of this Compact, and shall include\nall of the Product requirements in aggregate; provided, that each Uniform\nStandard shall be construed, whether express or implied, to prohibit the use of\nany inconsistent, misleading or ambiguous provisions in a Product and the form\nof the Product made available to the public shall not be unfair, inequitable or\nagainst public policy as determined by the Commission.\n\t\t\tArticle III.\t\t\tEstablishment of the Commission and Venue.\n\n1. The Compacting States hereby create and establish a joint public agency known\nas the “Interstate Insurance Product Regulation Commission.”\nPursuant to Article IV, the Commission will have the power to develop Uniform\nStandards for Product lines, receive and provide prompt review of Products filed\ntherewith, and give approval to those Product filings satisfying applicable\nUniform Standards; provided, it is not intended for the Commission to be the\nexclusive entity for receipt and review of insurance product filings. Nothing\nherein shall prohibit any Insurer from filing its product in any State wherein\nthe Insurer is licensed to conduct the business of insurance; and any such\nfiling shall be subject to the laws of the State where filed.\n\n2. The Commission is a body corporate and politic, and an instrumentality of the\nCompacting States.\n\n3. The Commission is solely responsible for its liabilities except as otherwise\nspecifically provided in this Compact.\n\n4. Venue is proper and judicial proceedings by or against the Commission shall\nbe brought solely and exclusively in a court of competent jurisdiction where the\nprincipal office of the Commission is located.\n\t\t\tArticle IV.\t\t\tPowers of the Commission.\t\t\tThe Commission shall have the\nfollowing powers:\n\n1. To promulgate Rules, pursuant to Article VII of this Compact, which shall\nhave the force and effect of law and shall be binding in the Compacting States\nto the extent and in the manner provided in this Compact;\n\n2. To exercise its rule-making authority and establish reasonable Uniform\nStandards for Products covered under the Compact, and Advertisement related\nthereto, which shall have the force and effect of law and shall be binding in\nthe Compacting States, but only for those Products filed with the Commission,\nprovided, that a Compacting State shall have the right to opt out of such\nUniform Standard pursuant to Article VII, to the extent and in the manner\nprovided in this Compact, and, provided further, that any Uniform Standard\nestablished by the Commission for long-term care insurance products may provide\nthe same or greater protections for consumers as, but shall not provide less\nthan, those protections set forth in the National Association of Insurance\nCommissioners’ Long-Term Care Insurance Model Act and Long-Term Care\nInsurance Model Regulation, respectively, adopted as of 2001. The Commission\nshall consider whether any subsequent amendments to the NAIC Long-Term Care\nInsurance Model Act or Long-Term Care Insurance Model Regulation adopted by the\nNAIC require amending of the Uniform Standards established by the Commission for\nlong-term care insurance products;\n\n3. To receive and review in an expeditious manner Products filed with the\nCommission, and rate filings for disability income and long-term care insurance\nProducts, and give approval of those Products and rate filings that satisfy the\napplicable Uniform Standard, where such approval shall have the force and effect\nof law and be binding on the Compacting States to the extent and in the manner\nprovided in the Compact;\n\n4. To receive and review in an expeditious manner Advertisement relating to\nlong-term care insurance products for which Uniform Standards have been adopted\nby the Commission, and give approval to all Advertisement that satisfies the\napplicable Uniform Standard. For any product covered under this Compact, other\nthan long-term care insurance products, the Commission shall have the authority\nto require an insurer to submit all or any part of its Advertisement with\nrespect to that product for review or approval prior to use, if the Commission\ndetermines that the nature of the product is such that an Advertisement of the\nproduct could have the capacity or tendency to mislead the public. The actions\nof Commission as provided in this section shall have the force and effect of law\nand shall be binding in the Compacting States to the extent and in the manner\nprovided in the Compact;\n\n5. To exercise its rule-making authority and designate Products and\nAdvertisement that may be subject to a self-certification process without the\nneed for prior approval by the Commission;\n\n6. To promulgate Operating Procedures, pursuant to Article VII of this Compact,\nwhich shall be binding in the Compacting States to the extent and in the manner\nprovided in this Compact;\n\n7. To bring and prosecute legal proceedings or actions in its name as the\nCommission; provided, that the standing of any state insurance department to sue\nor be sued under applicable law shall not be affected;\n\n8. To issue subpoenas requiring the attendance and testimony of witnesses and\nthe production of evidence;\n\n9. To establish and maintain offices;\n\n10. To purchase and maintain insurance and bonds;\n\n11. To borrow, accept or contract for services of personnel, including, but not\nlimited to, employees of a Compacting State;\n\n12. To hire employees, professionals or specialists, and elect or appoint\nofficers, and to fix their compensation, define their duties and give them\nappropriate authority to carry out the purposes of the Compact, and determine\ntheir qualifications; and to establish the Commission’s personnel policies\nand programs relating to, among other things, conflicts of interest, rates of\ncompensation and qualifications of personnel;\n\n13. To accept any and all appropriate donations and grants of money, equipment,\nsupplies, materials and services, and to receive, utilize and dispose of the\nsame; provided that at all times the Commission shall strive to avoid any\nappearance of impropriety;\n\n14. To lease, purchase, accept appropriate gifts or donations of, or otherwise\nto own, hold, improve or use, any property, real, personal or mixed; provided\nthat at all times the Commission shall strive to avoid any appearance of\nimpropriety;\n\n15. To sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise\ndispose of any property, real, personal or mixed;\n\n16. To remit filing fees to Compacting States as may be set forth in the Bylaws,\nRules or Operating Procedures;\n\n17. To enforce compliance by Compacting States with Rules, Uniform Standards,\nOperating Procedures and Bylaws;\n\n18. To provide for dispute resolution among Compacting States;\n\n19. To advise Compacting States on issues relating to Insurers domiciled or\ndoing business in Non-compacting jurisdictions, consistent with the purposes of\nthis Compact;\n\n20. To provide advice and training to those personnel in state insurance\ndepartments responsible for product review, and to be a resource for state\ninsurance departments;\n\n21. To establish a budget and make expenditures;\n\n22. To borrow money;\n\n23. To appoint committees, including advisory committees comprising Members,\nstate insurance regulators, state legislators or their representatives,\ninsurance industry and consumer representatives, and such other interested\npersons as may be designated in the Bylaws;\n\n24. To provide and receive information from, and to cooperate with,\nlaw-enforcement agencies;\n\n25. To adopt and use a corporate seal; and\n\n26. To perform such other functions as may be necessary or appropriate to\nachieve the purposes of this Compact consistent with the state regulation of the\nbusiness of insurance.\n\t\t\tArticle V.\t\t\tOrganization of the Commission.\n\n1. Membership, Voting and Bylaws.\n\t\t\ta. Each Compacting State shall have and be limited to one Member. Each Member\nshall be qualified to serve in that capacity pursuant to applicable law of the\nCompacting State. Any Member may be removed or suspended from office as provided\nby the law of the State from which he or she shall be appointed. Any vacancy\noccurring in the Commission shall be filled in accordance with the laws of the\nCompacting State wherein the vacancy exists. Nothing herein shall be construed\nto affect the manner in which a Compacting State determines the election or\nappointment and qualification of its own Commissioner.\t\t\tb. Each Member shall be\nentitled to one vote and shall have an opportunity to participate in the\ngovernance of the Commission in accordance with the Bylaws. Notwithstanding any\nprovision herein to the contrary, no action of the Commission with respect to\nthe promulgation of a Uniform Standard shall be effective unless two-thirds of\nthe Members vote in favor thereof.\t\t\tc. The Commission shall, by a majority of\nthe Members, prescribe Bylaws to govern its conduct as may be necessary or\nappropriate to carry out the purposes, and exercise the powers, of the Compact,\nincluding, but not limited to:\t\t\ti. Establishing the fiscal year of the\nCommission;\t\t\tii. Providing reasonable procedures for appointing and electing\nmembers, as well as holding meetings, of the Management Committee;\t\t\tiii.\nProviding reasonable standards and procedures: (i) for the establishment and\nmeetings of other committees, and (ii) governing any general or specific\ndelegation of any authority or function of the Commission;\t\t\tiv. Providing\nreasonable procedures for calling and conducting meetings of the Commission that\nconsists of a majority of Commission members, ensuring reasonable advance notice\nof each such meeting, and providing for the right of citizens to attend each\nsuch meeting with enumerated exceptions designed to protect the public’s\ninterest, the privacy of individuals, and insurers’ proprietary\ninformation, including trade secrets. The Commission may meet in camera only\nafter a majority of the entire membership votes to close a meeting en toto or in\npart. As soon as practicable, the Commission must make public (i) a copy of the\nvote to close the meeting revealing the vote of each Member with no proxy votes\nallowed, and (ii) votes taken during such meeting;\t\t\tv. Establishing the titles,\nduties and authority and reasonable procedures for the election of the officers\nof the Commission;\t\t\tvi. Providing reasonable standards and procedures for the\nestablishment of the personnel policies and programs of the Commission.\nNotwithstanding any civil service or other similar laws of any Compacting State,\nthe Bylaws shall exclusively govern the personnel policies and programs of the\nCommission;\t\t\tvii. Promulgating a code of ethics to address permissible and\nprohibited activities of Commission members and employees; and\t\t\tviii. Providing\na mechanism for winding up the operations of the Commission and the equitable\ndisposition of any surplus funds that may exist after the termination of the\nCompact after the payment and\/or reserving of all of its debts and\nobligations.\t\t\td. The Commission shall publish its Bylaws in a convenient form\nand file a copy thereof and a copy of any amendment thereto, with the\nappropriate agency or officer in each of the Compacting States.\n\n2. Management Committee, Officers and Personnel.\n\t\t\ta. A Management Committee comprising no more than 14 members shall be\nestablished as follows:\t\t\ti. One member from each of the six Compacting States\nwith the largest premium volume for individual and group annuities, life,\ndisability income, and long-term care insurance products, determined from the\nrecords of the NAIC for the prior year;\t\t\tii. Four members from those Compacting\nStates with at least two percent of the market based on the premium volume\ndescribed above, other than the six Compacting States with the largest premium\nvolume, selected on a rotating basis as provided in the Bylaws; and\t\t\tiii. Four\nmembers from those Compacting States with less than two percent of the market,\nbased on the premium volume described above, with one selected from each of the\nfour zone regions of the NAIC as provided in the Bylaws.\t\t\tb. The Management\nCommittee shall have such authority and duties as may be set forth in the\nBylaws, including but not limited to:\t\t\ti. Managing the affairs of the\nCommission in a manner consistent with the Bylaws and purposes of the\nCommission;\t\t\tii. Establishing and overseeing an organizational structure\nwithin, and appropriate procedures for, the Commission to provide for the\ncreation of Uniform Standards and other Rules, receipt and review of product\nfilings, administrative and technical support functions, review of decisions\nregarding the disapproval of a product filing, and the review of elections made\nby a Compacting State to opt out of a Uniform Standard; provided that a Uniform\nStandard shall not be submitted to the Compacting States for adoption unless\napproved by two-thirds of the members of the Management Committee;\t\t\tiii.\nOverseeing the offices of the Commission; and\t\t\tiv. Planning, implementing, and\ncoordinating communications and activities with other state, federal and local\ngovernment organizations in order to advance the goals of the Commission.\t\t\tc.\nThe Commission shall elect annually officers from the Management Committee, with\neach having such authority and duties as may be specified in the Bylaws.\t\t\td.\nThe Management Committee may, subject to the approval of the Commission, appoint\nor retain an executive director for such period, upon such terms and conditions\nand for such compensation as the Commission may deem appropriate. The executive\ndirector shall serve as secretary to the Commission, but shall not be a Member\nof the Commission. The executive director shall hire and supervise such other\nstaff as may be authorized by the Commission.\n\n3. Legislative and Advisory Committees.\n\t\t\ta. A legislative committee comprising state legislators or their designees\nshall be established to monitor the operations of, and make recommendations to,\nthe Commission, including the Management Committee; provided that the manner of\nselection and term of any legislative committee member shall be as set forth in\nthe Bylaws. Prior to the adoption by the Commission of any Uniform Standard,\nrevision to the Bylaws, annual budget, or other significant matter as may be\nprovided in the Bylaws, the Management Committee shall consult with and report\nto the legislative committee.\t\t\tb. The Commission shall establish two advisory\ncommittees, one of which shall comprise consumer representatives independent of\nthe insurance industry, and the other comprising insurance industry\nrepresentatives.\t\t\tc. The Commission may establish additional advisory\ncommittees as its Bylaws may provide for the carrying out of its functions.\n\n4. Corporate Records of the Commission.\n\t\t\tThe Commission shall maintain its corporate books and records in accordance\nwith the Bylaws.\n\n5. Qualified Immunity, Defense and Indemnification.\n\t\t\ta. The Members, officers, executive director, employees and representatives\nof the Commission shall be immune from suit and liability, either personally or\nin their official capacity, for any claim for damage to or loss of property or\npersonal injury or other civil liability caused by or arising out of any actual\nor alleged act, error or omission that occurred, or that the person against whom\nthe claim is made had a reasonable basis for believing occurred within the scope\nof Commission employment, duties or responsibilities; provided, that nothing in\nthis paragraph shall be construed to protect any such person from suit and\/or\nliability for any damage, loss, injury or liability caused by the intentional or\nwillful and wanton misconduct of that person.\t\t\tb. The Commission shall defend\nany Member, officer, executive director, employee or representative of the\nCommission in any civil action seeking to impose liability arising out of any\nactual or alleged act, error or omission that occurred within the scope of\nCommission employment, duties or responsibilities, or that the person against\nwhom the claim is made had a reasonable basis for believing occurred within the\nscope of Commission employment, duties or responsibilities; provided, that\nnothing herein shall be construed to prohibit that person from retaining his or\nher own counsel; and provided further, that the actual or alleged act, error or\nomission did not result from that person’s intentional or willful and\nwanton misconduct.\t\t\tc. The Commission shall indemnify and hold harmless any\nMember, officer, executive director, employee or representative of the\nCommission for the amount of any settlement or judgment obtained against that\nperson arising out of any actual or alleged act, error or omission that occurred\nwithin the scope of Commission employment, duties or responsibilities; or that\nsuch person had a reasonable basis for believing occurred within the scope of\nCommission employment, duties or responsibilities, provided, that the actual or\nalleged act, error or omission did not result from the intentional or willful\nand wanton misconduct of that person.\t\t\tArticle VI.\t\t\tMeetings and Acts of the\nCommission.\n\n1. The Commission shall meet and take such actions as are consistent with the\nprovisions of this Compact and the Bylaws.\n\n2. Each Member of the Commission shall have the right and power to cast a vote\nto which that Compacting State is entitled and to participate in the business\nand affairs of the Commission. A Member shall vote in person or by such other\nmeans as provided in the Bylaws. The Bylaws may provide for Members’\nparticipation in meetings by telephone or other means of communication.\n\n3. The Commission shall meet at least once during each calendar year. Additional\nmeetings shall be held as set forth in the Bylaws.\n\t\t\tArticle VII.\t\t\tRules and Operating Procedures: Rulemaking Functions of the\nCommission and Opting Out of Uniform Standards.\n\n1. Rulemaking Authority. The Commission shall promulgate reasonable Rules,\nincluding Uniform Standards, and Operating Procedures in order to effectively\nand efficiently achieve the purposes of this Compact. Notwithstanding the\nforegoing, in the event the Commission exercises its rulemaking authority in a\nmanner that is beyond the scope of the purposes of this Act, or the powers\ngranted hereunder, then such an action by the Commission shall be invalid and\nhave no force and effect.\n\n2. Rulemaking Procedure. Rules and Operating Procedures shall be made pursuant\nto a rulemaking process that conforms to the Model State Administrative\nProcedure Act of 1981, as amended, as may be appropriate to the operations of\nthe Commission. Before the Commission adopts a Uniform Standard, the Commission\nshall give written notice to the relevant state legislative committee(s) in each\nCompacting State responsible for insurance issues of its intention to adopt the\nUniform Standard. The Commission in adopting a Uniform Standard shall consider\nfully all submitted materials and issue a concise explanation of its decision.\n\n3. Effective Date and Opt Out of a Uniform Standard. A Uniform Standard shall\nbecome effective 90 days after its promulgation by the Commission or such later\ndate as the Commission may determine; provided, however, that a Compacting State\nmay opt out of a Uniform Standard as provided in this Article. “Opt\nout” shall be defined as any action by a Compacting State to decline to\nadopt or participate in a promulgated Uniform Standard. All other Rules and\nOperating Procedures, and amendments thereto, shall become effective as of the\ndate specified in each Rule, Operating Procedure or amendment.\n\n4. Opt Out Procedure. A Compacting State may opt out of a Uniform Standard,\neither by legislation or regulation duly promulgated by the Insurance Department\nunder the Compacting State’s Administrative Procedure Act or duly\npromulgated pursuant to the Compacting State’s law. If a Compacting State\nelects to opt out of a Uniform Standard by regulation, it must (a) give written\nnotice to the Commission no later than 10 business days after the Uniform\nStandard is promulgated, or at the time the State becomes a Compacting State and\n(b) find that the Uniform Standard does not provide reasonable protections to\nthe citizens of the State, given the conditions in the State. The Commissioner\nor tribunal shall make specific findings of fact and conclusions of law, based\non a preponderance of the evidence, detailing the conditions in the State which\nwarrant a departure from the Uniform Standard and determining that the Uniform\nStandard would not reasonably protect the citizens of the State. The\nCommissioner or tribunal must consider and balance the following factors and\nfind that the conditions in the State and needs of the citizens of the State\noutweigh: (i) the intent of the legislature to participate in, and the benefits\nof, an interstate agreement to establish national uniform consumer protections\nfor the Products subject to this Act; and (ii) the presumption that a Uniform\nStandard adopted by the Commission provides reasonable protections to consumers\nof the relevant Product.\n\t\t\tNotwithstanding the foregoing, a Compacting State may, at the time of its\nenactment of this Compact, prospectively opt out of all Uniform Standards\ninvolving long-term care insurance products by expressly providing for such opt\nout in the enacted Compact, and such an opt out shall not be treated as a\nmaterial variance in the offer or acceptance of any State to participate in this\nCompact. Such an opt out shall be effective at the time of enactment of this\nCompact by the Compacting State and shall apply to all existing Uniform\nStandards involving long-term care insurance products and those subsequently\npromulgated.\n\n5. Effect of Opt Out. If a Compacting State elects to opt out of a Uniform\nStandard, the Uniform Standard shall remain applicable in the Compacting State\nelecting to opt out until such time the opt out legislation is enacted into law\nor the regulation opting out becomes effective.\n\t\t\tOnce the opt out of a Uniform Standard by a Compacting State becomes\neffective as provided under the laws of that State, the Uniform Standard shall\nhave no further force and effect in that State unless and until the legislation\nor regulation implementing the opt out is repealed or otherwise becomes\nineffective under the laws of the State. If a Compacting State opts out of a\nUniform Standard after the Uniform Standard has been made effective in that\nState, the opt out shall have the same prospective effect as provided under\nArticle XIV for withdrawals.\n\n6. Stay of Uniform Standard. If a Compacting State has formally initiated the\nprocess of opting out of a Uniform Standard by regulation, and while the\nregulatory opt out is pending, the Compacting State may petition the Commission,\nat least 15 days before the effective date of the Uniform Standard, to stay the\neffectiveness of the Uniform Standard in that State. The Commission may grant a\nstay if it determines the regulatory opt out is being pursued in a reasonable\nmanner and there is a likelihood of success. If a stay is granted or extended by\nthe Commission, the stay or extension thereof may postpone the effective date by\nup to 90 days, unless affirmatively extended by the Commission; provided, a stay\nmay not be permitted to remain in effect for more than one year unless the\nCompacting State can show extraordinary circumstances which warrant a\ncontinuance of the stay, including, but not limited to, the existence of a legal\nchallenge which prevents the Compacting State from opting out. A stay may be\nterminated by the Commission upon notice that the rulemaking process has been\nterminated.\n\n7. Not later than 30 days after a Rule or Operating Procedure is promulgated,\nany person may file a petition for judicial review of the Rule or Operating\nProcedure; provided, that the filing of such a petition shall not stay or\notherwise prevent the Rule or Operating Procedure from becoming effective unless\nthe court finds that the petitioner has a substantial likelihood of success. The\ncourt shall give deference to the actions of the Commission consistent with\napplicable law and shall not find the Rule or Operating Procedure to be unlawful\nif the Rule or Operating Procedure represents a reasonable exercise of the\nCommission’s authority.\n\t\t\tArticle VIII.\t\t\tCommission Records and Enforcement.\n\n1. The Commission shall promulgate Rules establishing conditions and procedures\nfor public inspection and copying of its information and official records,\nexcept such information and records involving the privacy of individuals and\ninsurers’ trade secrets. The Commission may promulgate additional Rules\nunder which it may make available to federal and state agencies, including\nlaw-enforcement agencies, records and information otherwise exempt from\ndisclosure, and may enter into agreements with such agencies to receive or\nexchange information or records subject to nondisclosure and confidentiality\nprovisions.\n\n2. Except as to privileged records, data and information, the laws of any\nCompacting State pertaining to confidentiality or nondisclosure shall not\nrelieve any Compacting State Commissioner of the duty to disclose any relevant\nrecords, data, or information to the Commission; provided, that disclosure to\nthe Commission shall not be deemed to waive or otherwise affect any\nconfidentiality requirement; and further provided, that, except as otherwise\nexpressly provided in this Act, the Commission shall not be subject to the\nCompacting State’s laws pertaining to confidentiality and nondisclosure\nwith respect to records, data, and information in its possession. Confidential\ninformation of the Commission shall remain confidential after such information\nis provided to any Commissioner.\n\n3. The Commission shall monitor Compacting States for compliance with duly\nadopted Bylaws, Rules, including Uniform Standards, and Operating Procedures.\nThe Commission shall notify any non-complying Compacting State in writing of its\nnoncompliance with Commission Bylaws, Rules or Operating Procedures. If a\nnoncomplying Compacting State fails to remedy its noncompliance within the time\nspecified in the notice of noncompliance, the Compacting State shall be deemed\nto be in default as set forth in Article XIV.\n\n4. The Commissioner of any State in which an Insurer is authorized to do\nbusiness, or is conducting the business of insurance, shall continue to exercise\nhis or her authority to oversee the market regulation of the activities of the\nInsurer in accordance with the provisions of the State’s law. The\nCommissioner’s enforcement of compliance with the Compact is governed by\nthe following provisions:\n\t\t\ta. With respect to the Commissioner’s market regulation of a Product or\nAdvertisement that is approved or certified to the Commission, the content of\nthe Product or Advertisement shall not constitute a violation of the provisions,\nstandards or requirements of the Compact except upon a final order of the\nCommission, issued at the request of a Commissioner after prior notice to the\nInsurer and an opportunity for hearing before the Commission.\t\t\tb. Before a\nCommissioner may bring an action for violation of any provision, standard or\nrequirement of the Compact relating to the content of an Advertisement not\napproved or certified to the Commission, the Commission, or an authorized\nCommission officer or employee, must authorize the action. However,\nauthorization pursuant to this paragraph does not require notice to the Insurer,\nopportunity for hearing or disclosure of requests for authorization or records\nof the Commission’s action on such requests.\t\t\tArticle IX.\t\t\tDispute\nResolution.\t\t\tThe Commission shall attempt, upon the request of a Member, to\nresolve any disputes or other issues that are subject to this Compact and which\nmay arise between two or more Compacting States, or between Compacting States\nand Non-compacting States, and the Commission shall promulgate an Operating\nProcedure providing for resolution of such disputes.\t\t\tArticle X.\t\t\tProduct\nFiling and Approval.\n\n1. Insurers and Third-Party Filers seeking to have a Product approved by the\nCommission shall file the Product with, and pay applicable filing fees to, the\nCommission. Nothing in this Act shall be construed to restrict or otherwise\nprevent an insurer from filing its Product with the insurance department in any\nState wherein the insurer is licensed to conduct the business of insurance, and\nsuch filing shall be subject to the laws of the States where filed.\n\n2. The Commission shall establish appropriate filing and review processes and\nprocedures pursuant to Commission Rules and Operating Procedures.\nNotwithstanding any provision herein to the contrary, the Commission shall\npromulgate Rules to establish conditions and procedures under which the\nCommission will provide public access to Product filing information. In\nestablishing such Rules, the Commission shall consider the interests of the\npublic in having access to such information, as well as protection of personal\nmedical and financial information and trade secrets, that may be contained in a\nProduct filing or supporting information.\n\n3. Any Product approved by the Commission may be sold or otherwise issued in\nthose Compacting States for which the Insurer is legally authorized to do\nbusiness.\n\t\t\tArticle XI.\t\t\tReview of Commission Decisions Regarding Filings.\n\n1. Not later than 30 days after the Commission has given notice of a disapproved\nProduct or Advertisement filed with the Commission, the Insurer or Third Party\nFiler whose filing was disapproved may appeal the determination to a review\npanel appointed by the Commission. The Commission shall promulgate Rules to\nestablish procedures for appointing such review panels and provide for notice\nand hearing. An allegation that the Commission, in disapproving a Product or\nAdvertisement filed with the Commission, acted arbitrarily, capriciously, or in\na manner that is an abuse of discretion or otherwise not in accordance with the\nlaw, is subject to judicial review in accordance with Article III, section 4.\n\n2. The Commission shall have authority to monitor, review and reconsider\nProducts and Advertisement subsequent to their filing or approval upon a finding\nthat the Product does not meet the relevant Uniform Standard. Where appropriate,\nthe Commission may withdraw or modify its approval after proper notice and\nhearing, subject to the appeal process in section 1 above.\n\t\t\tArticle XII.\t\t\tFinance.\n\n1. The Commission shall pay or provide for the payment of the reasonable\nexpenses of its establishment and organization. To fund the cost of its initial\noperations, the Commission may accept contributions and other forms of funding\nfrom the National Association of Insurance Commissioners, Compacting States and\nother sources. Contributions and other forms of funding from other sources shall\nbe of such a nature that the independence of the Commission concerning the\nperformance of its duties shall not be compromised.\n\n2. The Commission shall collect a filing fee from each Insurer and Third Party\nFiler filing a Product with the Commission to cover the cost of the operations\nand activities of the Commission and its staff in a total amount sufficient to\ncover the Commission’s annual budget.\n\n3. The Commission’s budget for a fiscal year shall not be approved until\nit has been subject to notice and comment as set forth in Article VII of this\nCompact.\n\n4. The Commission shall be exempt from all taxation in and by the Compacting\nStates.\n\n5. The Commission shall not pledge the credit of any Compacting State, except by\nand with the appropriate legal authority of that Compacting State.\n\n6. The Commission shall keep complete and accurate accounts of all its internal\nreceipts, including grants and donations, and disbursements of all funds under\nits control. The internal financial accounts of the Commission shall be subject\nto the accounting procedures established under its Bylaws. The financial\naccounts and reports including the system of internal controls and procedures of\nthe Commission shall be audited annually by an independent certified public\naccountant. Upon the determination of the Commission, but no less frequently\nthan every three years, the review of the independent auditor shall include a\nmanagement and performance audit of the Commission. The Commission shall make an\nAnnual Report to the Governor and legislature of the Compacting States, which\nshall include a report of the independent audit. The Commission’s internal\naccounts shall not be confidential and such materials may be shared with the\nCommissioner of any Compacting State upon request; provided, however, that any\nwork papers related to any internal or independent audit and any information\nregarding the privacy of individuals and insurers’ proprietary\ninformation, including trade secrets, shall remain confidential.\n\n7. No Compacting State shall have any claim to or ownership of any property held\nby or vested in the Commission or to any Commission funds held pursuant to the\nprovisions of this Compact.\n\t\t\tArticle XIII.\t\t\tCompacting States, Effective Date and Amendment.\n\n1. Any State is eligible to become a Compacting State.\n\n2. The Compact shall become effective and binding upon legislative enactment of\nthe Compact into law by two Compacting States; provided, the Commission shall\nbecome effective for purposes of adopting Uniform Standards for, reviewing, and\ngiving approval or disapproval of, Products filed with the Commission that\nsatisfy applicable Uniform Standards only after 26 States are Compacting States\nor, alternatively, by States representing greater than 40 percent of the premium\nvolume for life insurance, annuity, disability income, and long-term care\ninsurance products, based on records of the NAIC for the prior year. Thereafter,\nit shall become effective and binding as to any other Compacting State upon\nenactment of the Compact into law by that State.\n\n3. Amendments to the Compact may be proposed by the Commission for enactment by\nthe Compacting States. No amendment shall become effective and binding upon the\nCommission and the Compacting States unless and until all Compacting States\nenact the amendment into law.\n\t\t\tArticle XIV.\t\t\tWithdrawal, Default and Termination.\n\n1. Withdrawal.\n\t\t\ta. Once effective, the Compact shall continue in force and remain binding\nupon each and every Compacting State; provided, that a Compacting State may\nwithdraw from the Compact (Withdrawing State) by enacting a statute specifically\nrepealing the statute which enacted the Compact into law.\t\t\tb. The effective\ndate of withdrawal is the effective date of the repealing statute. However, the\nwithdrawal shall not apply to any Product filings approved or self-certified, or\nany Advertisement of such Products, on the date the repealing statute becomes\neffective, except by mutual agreement of the Commission and the Withdrawing\nState unless the approval is rescinded by the Withdrawing State as provided in\nsubsection e of this section.\t\t\tc. The Commissioner of the Withdrawing State\nshall immediately notify the Management Committee in writing upon the\nintroduction of legislation repealing this Compact in the Withdrawing\nState.\t\t\td. The Commission shall notify the other Compacting States of the\nintroduction of such legislation within 10 days after its receipt of notice\nthereof.\t\t\te. The Withdrawing State is responsible for all obligations, duties\nand liabilities incurred through the effective date of withdrawal, including any\nobligations, the performance of which extend beyond the effective date of\nwithdrawal, except to the extent those obligations may have been released or\nrelinquished by mutual agreement of the Commission and the Withdrawing State.\nThe Commission’s approval of Products and Advertisement prior to the\neffective date of withdrawal shall continue to be effective and be given full\nforce and effect in the Withdrawing State, unless formally rescinded by the\nWithdrawing State in the same manner as provided by the laws of the Withdrawing\nState for the prospective disapproval of Products or Advertisement previously\napproved under State law.\t\t\tf. Reinstatement following withdrawal of any\nCompacting State shall occur upon the effective date of the Withdrawing State\nreenacting the Compact.\n\n2. Default.\n\t\t\ta. If the Commission determines that any Compacting State has at any time\ndefaulted (Defaulting State) in the performance of any of its obligations or\nresponsibilities under this Compact, the Bylaws or duly promulgated Rules or\nOperating Procedures, then, after notice and hearing as set forth in the Bylaws,\nall rights, privileges and benefits conferred by this Compact on the Defaulting\nState shall be suspended from the effective date of default as fixed by the\nCommission. The grounds for default include, but are not limited to, failure of\na Compacting State to perform its obligations or responsibilities, and any other\ngrounds designated in Commission Rules. The Commission shall immediately notify\nthe Defaulting State in writing of the Defaulting State’s suspension\npending a cure of the default. The Commission shall stipulate the conditions and\nthe time period within which the Defaulting State must cure its default. If the\nDefaulting State fails to cure the default within the time period specified by\nthe Commission, the Defaulting State shall be terminated from the Compact and\nall rights, privileges and benefits conferred by this Compact shall be\nterminated from the effective date of termination.\t\t\tb. Product approvals by the\nCommission or Product self-certifications, or any Advertisement in connection\nwith such Product, that are in force on the effective date of termination shall\nremain in force in the Defaulting State in the same manner as if the Defaulting\nState had withdrawn voluntarily pursuant to paragraph 1 of this Article.\t\t\tc.\nReinstatement following termination of any Compacting State requires a\nreenactment of the Compact.\n\n3. Dissolution of Compact.\n\t\t\ta. The Compact dissolves effective upon the date of the withdrawal or default\nof the Compacting State which reduces membership in the Compact to one\nCompacting State.\t\t\tb. Upon the dissolution of this Compact, the Compact becomes\nnull and void and shall be of no further force or effect, and the business and\naffairs of the Commission shall be wound up and any surplus funds shall be\ndistributed in accordance with the Bylaws.\t\t\tArticle XV.\t\t\tSeverability and\nConstruction.\n\n1. The provisions of this Compact shall be severable; and if any phrase, clause,\nsentence, or provision is deemed unenforceable, the remaining provisions of the\nCompact shall be enforceable.\n\n2. The provisions of this Compact shall be liberally construed to effectuate its\npurposes.\n\t\t\tArticle XVI.\t\t\tBinding Effect of Compact and Other Laws.\n\n1. Other Laws.\n\t\t\ta. Nothing herein prevents the enforcement of any other law of a Compacting\nState, except as provided in paragraph b of this Article.\t\t\tb. For any Product\napproved or certified to the Commission, the Rules, Uniform Standards, and any\nother requirements of the Commission shall constitute the exclusive provisions\napplicable to the content, approval and certification of such Products. For\nAdvertisement that is subject to the Commission’s authority, any Rule,\nUniform Standard or other requirement of the Commission which governs the\ncontent of the Advertisement shall constitute the exclusive provision that a\nCommissioner may apply to the content of the Advertisement. Notwithstanding the\nforegoing, no action taken by the Commission shall abrogate or restrict: (i) the\naccess of any person to State courts; (ii) remedies available under State law\nrelated to breach of contract, tort, or other laws not specifically directed to\nthe content of the Product; (iii) State law relating to the construction of\ninsurance contracts; or (iv) the authority of the attorney general of the State,\nincluding but not limited to maintaining any actions or proceedings, as\nauthorized by law.\t\t\tc. All insurance Products filed with individual States\nshall be subject to the laws of those States.\n\n2. Binding Effect of this Compact.\n\t\t\ta. All lawful actions of the Commission, including all Rules and Operating\nProcedures promulgated by the Commission, are binding upon the Compacting\nStates.\t\t\tb. All agreements between the Commission and the Compacting States are\nbinding in accordance with their terms.\t\t\tc. Upon the request of a party to a\nconflict over the meaning or interpretation of Commission actions, and upon a\nmajority vote of the Compacting States, the Commission may issue advisory\nopinions regarding the meaning or interpretation in dispute.\t\t\td. In the event\nany provision of this Compact exceeds the constitutional limits imposed on the\nlegislature of any Compacting State, the obligations, duties, powers or\njurisdiction sought to be conferred by that provision upon the Commission shall\nbe ineffective as to that Compacting State, and those obligations, duties,\npowers or jurisdiction shall remain in the Compacting State and shall be\nexercised by the agency thereof to which those obligations, duties, powers or\njurisdiction are delegated by law in effect at the time this Compact becomes\neffective.\n\nHISTORY: 2004, c. 761.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}