S T A T E   O F   N E W   Y O R K
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                                  6191

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 26, 2009
                               ___________

Introduced  by  M.  of  A.  TITUS, ROBINSON, WEISENBERG -- read once and
  referred to the Committee on Insurance

AN ACT to amend the insurance  law,  in  relation  to  establishing  the
  interstate  insurance  product  regulation compact to regulate certain
  insurance products

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative findings and intent. An interstate compact is
an agreement between states that permits states to cooperate  on  multi-
state  or  national issues while retaining state control. There are over
two hundred interstate compacts currently in existence and  every  state
belongs  to  at  least  fourteen such compacts. The interstate insurance
product regulation compact is designed to streamline state product regu-
lation systems to allow insurers to more quickly market certain types of
insurance products nationally and to reduce the number of variations  of
the  same  product  that a company must produce to meet specific product
standards. The compact would cover individual  and  group  products  for
life  insurance,  annuities, disability income and long-term care insur-
ance. The state of New York seeks to join with other states  and  estab-
lish  the  interstate  insurance product regulation compact and become a
member of the interstate insurance product regulation commission.
  S 2. The insurance law is amended by adding a new article 88  to  read
as follows:

                               ARTICLE 88
             INTERSTATE INSURANCE PRODUCT REGULATION COMPACT

SECTION 8801. SHORT TITLE.
        8802. PURPOSE.
        8803. DEFINITIONS.
        8804. ESTABLISHMENT OF THE COMMISSION AND VENUE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07717-01-9
              

A. 6191                             2

        8805. POWERS OF THE COMMISSION.
        8806. ORGANIZATION OF THE COMMISSION.
        8807. MEETINGS AND ACTS OF THE COMMISSION.
        8808.  RULES  AND OPERATING PROCEDURES; RULE MAKING FUNCTIONS OF
                THE COMMISSION AND OPTING OUT OF UNIFORM STANDARDS.
        8809. COMMISSION RECORDS AND ENFORCEMENT.
        8810. DISPUTE RESOLUTION.
        8811. PRODUCT FILING AND APPROVAL.
        8812. REVIEW OF COMMISSION DECISIONS REGARDING FILINGS.
        8813. FINANCE.
        8814. COMPACTING STATES, EFFECTIVE DATE AND AMENDMENT.
        8815. WITHDRAWAL, DEFAULT AND TERMINATION.
        8816. SEVERABILITY AND CONSTRUCTION.
        8817. BINDING EFFECT OF COMPACT AND OTHER LAWS.
  S 8801. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
THE "INTERSTATE INSURANCE PRODUCT REGULATION COMPACT".
  S  8802.  PURPOSE.  THE PURPOSES OF THIS COMPACT ARE, THROUGH MEANS OF
JOINT AND COOPERATIVE ACTION AMONG THE COMPACTING STATES:
  (A) TO PROMOTE AND PROTECT THE INTEREST OF CONSUMERS OF INDIVIDUAL AND
GROUP ANNUITY, LIFE INSURANCE,  DISABILITY  INCOME  AND  LONG-TERM  CARE
INSURANCE PRODUCTS;
  (B)  TO DEVELOP UNIFORM STANDARDS FOR INSURANCE PRODUCTS COVERED UNDER
THE COMPACT;
  (C) TO ESTABLISH A CENTRAL CLEARINGHOUSE TO RECEIVE AND PROVIDE PROMPT
REVIEW OF INSURANCE PRODUCTS COVERED UNDER THE COMPACT AND,  IN  CERTAIN
CASES,  ADVERTISEMENTS RELATED THERETO, SUBMITTED BY INSURERS AUTHORIZED
TO DO BUSINESS IN ONE OR MORE COMPACTING STATES;
  (D) TO GIVE APPROPRIATE REGULATORY APPROVAL TO THOSE  PRODUCT  FILINGS
AND ADVERTISEMENTS SATISFYING THE APPLICABLE UNIFORM STANDARD;
  (E)  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;
  (F)  TO CREATE THE INTERSTATE INSURANCE PRODUCT REGULATION COMMISSION;
AND
  (G) TO PERFORM SUCH OTHER RELATED FUNCTIONS AS MAY BE CONSISTENT  WITH
THE STATE REGULATION OF THE BUSINESS OF INSURANCE.
  S 8803. DEFINITIONS. AS USED IN THIS ARTICLE:
  (A)  "ADVERTISEMENT"  MEANS  ANY  MATERIAL  DESIGNED  TO CREATE PUBLIC
INTEREST IN A PRODUCT, OR INDUCE THE PUBLIC TO PURCHASE, INCREASE, MODI-
FY, REINSTATE, BORROW ON, SURRENDER, REPLACE OR RETAIN A POLICY, AS MORE
SPECIFICALLY DEFINED IN  THE  RULES  AND  OPERATING  PROCEDURES  OF  THE
COMMISSION.
  (B) "BY-LAWS" MEAN THOSE BY-LAWS ESTABLISHED BY THE COMMISSION FOR ITS
GOVERNANCE  OR  FOR DIRECTING OR CONTROLLING THE COMMISSION'S ACTIONS OR
CONDUCT.
  (C) "COMPACTING STATE" MEANS ANY STATE WHICH HAS ENACTED THIS  COMPACT
LEGISLATION  AND  WHICH HAS NOT WITHDRAWN OR BEEN TERMINATED PURSUANT TO
SECTION EIGHT THOUSAND EIGHT HUNDRED FIFTEEN OF THIS ARTICLE.
  (D) "COMMISSION" MEANS THE "INTERSTATE  INSURANCE  PRODUCT  REGULATION
COMMISSION" ESTABLISHED BY THE COMPACT.
  (E)  "COMMISSIONER" MEANS THE CHIEF INSURANCE REGULATORY OFFICIAL OF A
STATE INCLUDING, BUT NOT LIMITED TO COMMISSIONER, SUPERINTENDENT, DIREC-
TOR OR ADMINISTRATOR.
  (F) "DOMICILIARY STATE" MEANS THE STATE IN WHICH AN INSURER IS  INCOR-
PORATED  OR  ORGANIZED OR, IN THE CASE OF AN ALIEN INSURER, ITS STATE OF
ENTRY.

A. 6191                             3

  (G) "INSURER" MEANS ANY ENTITY LICENSED BY A STATE TO ISSUE  CONTRACTS
OF INSURANCE FOR ANY OF THE LINES OF INSURANCE COVERED BY THIS ARTICLE.
  (H)  "MEMBER"  MEANS  THE  PERSON, OR HIS OR HER DESIGNEE, CHOSEN BY A
COMPACTING STATE FOR SERVICE ON THE COMMISSION.
  (I) "NON-COMPACTING STATE" MEANS ANY STATE WHICH IS NOT AT THE TIME  A
COMPACTING STATE.
  (J)  "OPERATING PROCEDURES" MEAN PROCEDURES PROMULGATED BY THE COMMIS-
SION IMPLEMENTING A RULE,  UNIFORM  STANDARD  OR  A  PROVISION  OF  THIS
COMPACT.
  (K)  "PRODUCT"  MEANS  THE  FORM  OF THE CONTRACT, POLICY APPLICATION,
ENDORSEMENTS, CERTIFICATE FORMS, EVIDENCE OF COVERAGE FORMS AND  RELATED
FORMS  FOR  AN  INDIVIDUAL  OR GROUP ANNUITY, LIFE INSURANCE, DISABILITY
INCOME OR LONG-TERM CARE INSURANCE PRODUCT, WHICH AN INSURER IS  AUTHOR-
IZED TO ISSUE.
  (L)  "RULE"  MEANS  A STATEMENT OF GENERAL OR PARTICULAR APPLICABILITY
AND FUTURE EFFECT PROMULGATED BY THE  COMMISSION,  INCLUDING  A  UNIFORM
STANDARD  DEVELOPED  PURSUANT  TO  SECTION  EIGHT THOUSAND EIGHT HUNDRED
EIGHT OF THIS ARTICLE, 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.
  (M) "STATE" MEANS ANY STATE,  DISTRICT  OR  TERRITORY  OF  THE  UNITED
STATES OF AMERICA.
  (N)  "THIRD-PARTY FILER" MEANS AN ENTITY THAT SUBMITS A PRODUCT FILING
TO THE COMMISSION ON BEHALF OF AN INSURER.
  (O) "UNIFORM STANDARD" MEANS A STANDARD ADOPTED BY THE COMMISSION  FOR
A  PRODUCT  LINE, PURSUANT TO SECTION EIGHT THOUSAND EIGHT HUNDRED EIGHT
OF THIS ARTICLE 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 SUCH
PRODUCT MADE AVAILABLE TO THE PUBLIC SHALL NOT BE UNFAIR, INEQUITABLE OR
AGAINST PUBLIC POLICY AS DETERMINED BY THE COMMISSION.
  S 8804. ESTABLISHMENT OF THE COMMISSION AND VENUE. (A) THE  COMPACTING
STATES  HEREBY  CREATE  AND ESTABLISH A JOINT PUBLIC AGENCY KNOWN AS THE
"INTERSTATE  INSURANCE  PRODUCT  REGULATION  COMMISSION".  PURSUANT   TO
SECTION  EIGHT THOUSAND EIGHT HUNDRED EIGHT OF THIS ARTICLE, THE COMMIS-
SION SHALL 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, HOWEVER, THAT IT IS NOT INTENDED FOR THE COMMISSION
TO BE THE EXCLUSIVE ENTITY FOR RECEIPT AND REVIEW OF  INSURANCE  PRODUCT
FILINGS.  NOTHING IN THIS SECTION SHALL PROHIBIT ANY INSURER FROM FILING
ITS PRODUCT IN ANY STATE WHEREIN SUCH INSURER IS LICENSED TO CONDUCT THE
BUSINESS OF INSURANCE AND SUCH FILING SHALL BE SUBJECT TO  THE  LAWS  OF
THE STATE WHERE FILED.
  (B)  THE COMMISSION IS A BODY CORPORATE AND POLITIC, AND AN INSTRUMEN-
TALITY OF THE COMPACTING STATES.
  (C) THE COMMISSION IS A NOT-FOR-PROFIT ENTITY, SEPARATE  AND  DISTINCT
FROM THE INDIVIDUAL COMPACTING STATES.
  (D) THE COMMISSION IS SOLELY RESPONSIBLE FOR ITS LIABILITIES EXCEPT AS
OTHERWISE SPECIFICALLY PROVIDED IN THIS COMPACT.
  (E) VENUE IN PROPER AND JUDICIAL PROCEEDINGS BY OR AGAINST THE COMMIS-
SION  SHALL  BE  BROUGHT  SOLELY AND EXCLUSIVELY IN A COURT OF COMPETENT
JURISDICTION WHERE THE PRINCIPAL OFFICE OF THE COMMISSION IS LOCATED.

A. 6191                             4

  S 8805. POWERS OF  THE  COMMISSION.  THE  COMMISSION  SHALL  HAVE  THE
FOLLOWING POWERS:
  (A)  TO  PROMULGATE  RULES,  PURSUANT  TO SECTION EIGHT THOUSAND EIGHT
HUNDRED EIGHT OF THIS ARTICLE, 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 ARTICLE;
  (B) TO EXERCISE ITS RULE MAKING  AUTHORITY  AND  ESTABLISH  REASONABLE
UNIFORM STANDARDS FOR PRODUCTS COVERED UNDER THE COMPACT, AND ADVERTISE-
MENT  RELATED  THERETO, WHICH SHALL HAVE THE FORCE AND EFFECT OF LAW AND
SHALL BE BINDING IN THE COMPACTING STATES, BUT ONLY  FOR  SUCH  PRODUCTS
FILED  WITH  THE  COMMISSION; PROVIDED, HOWEVER, THAT A COMPACTING STATE
SHALL HAVE THE RIGHT TO OPT OUT OF SUCH  UNIFORM  STANDARD  PURSUANT  TO
SECTION EIGHT THOUSAND EIGHT HUNDRED EIGHT OF THIS ARTICLE TO THE EXTENT
AND  IN  THE  MANNER PROVIDED IN THIS ARTICLE, AND PROVIDED FURTHER THAT
ANY UNIFORM STANDARD ESTABLISHED BY THE COMMISSIONER 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' (HEREIN-
AFTER REFERRED TO AS THE "NAIC") 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   INSURANCE
PRODUCTS;
  (C) TO RECEIVE AND REVIEW IN AN EXPEDITIOUS MANNER PRODUCTS FILED WITH
THE  COMMISSION,  INCLUDING  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;
  (D) TO RECEIVE AND  REVIEW  IN  AN  EXPEDITIOUS  MANNER  ADVERTISEMENT
RELATING  TO  LONG-TERM CARE INSURANCE PRODUCTS FOR WHICH UNIFORM STAND-
ARDS HAVE BEEN ADOPTED BY THE COMMISSION,  AND  GIVE  APPROVAL  OF  SUCH
ADVERTISEMENT  THAT  SATISFIES  THE APPLICABLE UNIFORM STANDARD. FOR ANY
PRODUCT COVERED UNDER THIS ARTICLE, 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  THE  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;
  (E) TO EXERCISE ITS RULE MAKING AUTHORITY AND DESIGNATE  PRODUCTS  AND
ADVERTISEMENT  THAT MAY BE SUBJECT TO A SELF-CERTIFICATION PROCESS WITH-
OUT THE NEED FOR PRIOR APPROVAL BY THE COMMISSION;
  (F) TO PROMULGATE OPERATING  PROCEDURES,  PURSUANT  TO  SECTION  EIGHT
THOUSAND  EIGHT HUNDRED EIGHT OF THIS ARTICLE, WHICH SHALL BE BINDING IN
THE COMPACTING STATES TO THE EXTENT AND IN THE MANNER  PROVIDED  IN  THE
COMPACT;
  (G) 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;

A. 6191                             5

  (H) TO ISSUE SUBPOENAS  REQUIRING  THE  ATTENDANCE  AND  TESTIMONY  OF
WITNESSES AND THE PRODUCTION OF EVIDENCE;
  (I) TO ESTABLISH AND MAINTAIN OFFICES;
  (J) TO PURCHASE AND MAINTAIN INSURANCE AND BONDS;
  (K)  TO  BORROW, ACCEPT OR CONTRACT FOR SERVICES OF PERSONNEL, INCLUD-
ING, BUT NOT LIMITED TO, EMPLOYEES OF A COMPACTING STATE;
  (L) 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;
  (M)  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;
  (N)  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;
  (O) TO SELL, CONVEY, MORTGAGE, PLEDGE,  LEASE,  EXCHANGE,  ABANDON  OR
OTHERWISE DISPOSE OF ANY PROPERTY, REAL, PERSONAL OR MIXED;
  (P)  TO  REMIT FILING FEES TO COMPACTING STATES AS MAY BE SET FORTH IN
THE BY-LAWS, RULES OR OPERATING PROCEDURES;
  (Q) TO ENFORCE COMPLIANCE BY COMPACTING  STATES  WITH  RULES,  UNIFORM
STANDARDS, OPERATING PROCEDURES AND BY-LAWS;
  (R) TO PROVIDE FOR DISPUTE RESOLUTION AMONG COMPACTING STATES;
  (S)  TO  ADVISE COMPACTING STATES ON ISSUES RELATING TO INSURERS DOMI-
CILED OR DOING BUSINESS IN NON-COMPACTING JURISDICTIONS, CONSISTENT WITH
THE PURPOSES OF THE COMPACT;
  (T) TO PROVIDE ADVICE AND TRAINING TO THOSE PERSONNEL IN STATE  INSUR-
ANCE  DEPARTMENTS  RESPONSIBLE  FOR PRODUCT REVIEW, AND TO BE A RESOURCE
FOR STATE INSURANCE DEPARTMENTS;
  (U) TO ESTABLISH A BUDGET AND MAKE EXPENDITURES;
  (V) TO BORROW MONEY;
  (W) TO APPOINT COMMITTEES, INCLUDING  ADVISORY  COMMITTEES  COMPRISING
MEMBERS,  STATE  INSURANCE REGULATORS, STATE LEGISLATORS OR THEIR REPRE-
SENTATIVES, INSURANCE INDUSTRY AND CONSUMER  REPRESENTATIVES,  AND  SUCH
OTHER INTERESTED PERSONS AS MAY BE DESIGNATED IN THE BY-LAWS;
  (X) TO PROVIDE AND RECEIVE INFORMATION FROM, AND TO COOPERATE WITH LAW
ENFORCEMENT AGENCIES;
  (Y) TO ADOPT AND USE A CORPORATE SEAL; AND
  (Z) TO PERFORM SUCH OTHER FUNCTIONS AS MAY BE NECESSARY OR APPROPRIATE
TO  ACHIEVE THE PURPOSES OF THIS COMPACT CONSISTENT WITH THE STATE REGU-
LATION OF THE BUSINESS OF INSURANCE.
  S 8806. ORGANIZATION OF THE  COMMISSION.  (A)  EACH  COMPACTING  STATE
SHALL  HAVE  AND BE LIMITED TO ONE MEMBER. THE SUPERINTENDENT, OR HIS OR
HER DESIGNATED REPRESENTATIVE,  SHALL  BE  NEW  YORK'S  MEMBER  OF  SUCH
COMMISSION.  EACH  MEMBER  SHALL  BE QUALIFIED TO SERVE IN SUCH 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 SUCH VACANCY EXISTS. NOTHING HEREIN SHALL BE CONSTRUED TO

A. 6191                             6

AFFECT THE MANNER IN WHICH A COMPACTING STATE DETERMINES THE ELECTION OR
APPOINTMENT AND QUALIFICATION OF ITS OWN COMMISSIONER.
  (B) EACH MEMBER SHALL BE ENTITLED TO ONE VOTE AND SHALL HAVE AN OPPOR-
TUNITY  TO PARTICIPATE IN THE GOVERNANCE OF THE COMMISSION IN ACCORDANCE
WITH THE BY-LAWS. NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE  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.
  (C)  THE  COMMISSION  SHALL,  BY  A MAJORITY OF THE MEMBERS, PRESCRIBE
BY-LAWS TO GOVERN ITS CONDUCT AS MAY  BE  NECESSARY  OR  APPROPRIATE  TO
CARRY OUT THE PURPOSES, AND EXERCISE THE POWERS, OF THE COMPACT, INCLUD-
ING, BUT NOT LIMITED TO:
  (1) ESTABLISHING THE FISCAL YEAR OF THE COMMISSION;
  (2)  PROVIDING  REASONABLE  PROCEDURES  FOR  HOLDING  MEETINGS  OF THE
MANAGEMENT COMMITTEE;
  (3) PROVIDING REASONABLE STANDARDS AND PROCEDURES FOR  THE  ESTABLISH-
MENT  OF  OTHER COMMITTEES, AND GOVERNING ANY GENERAL OR SPECIFIC DELEG-
ATION OF ANY AUTHORITY OR FUNCTION OF THE COMMISSION;
  (4) PROVIDING REASONABLE PROCEDURES FOR CALLING AND  CONDUCTING  MEET-
INGS OF THE COMMISSION THAT CONSIST 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 IN TOTO OR IN PART.  AS  SOON
AS  PRACTICABLE,  THE  COMMISSION MUST MAKE PUBLIC A COPY OF THE VOTE TO
CLOSE THE MEETING REVEALING THE VOTE OF EACH MEMBER WITH NO PROXY  VOTES
ALLOWED, AND VOTES TAKEN DURING SUCH MEETING;
  (5)  ESTABLISHING  THE  TITLES,  DUTIES  AND  AUTHORITY AND REASONABLE
PROCEDURES FOR THE ELECTION OF THE OFFICERS OF THE COMMISSION;
  (6) PROVIDING REASONABLE STANDARDS AND PROCEDURES FOR  THE  ESTABLISH-
MENT OF THE PERSONNEL POLICIES AND PROGRAMS OF THE COMMISSION.  NOTWITH-
STANDING  ANY  CIVIL  SERVICE  OR  OTHER  SIMILAR LAWS OF ANY COMPACTING
STATE, THE BY-LAWS SHALL EXCLUSIVELY GOVERN THE PERSONNEL  POLICIES  AND
PROGRAMS OF THE COMMISSION;
  (7) PROMULGATING A CODE OF ETHICS TO ADDRESS PERMISSIBLE AND PROHIBIT-
ED ACTIVITIES OF COMMISSION MEMBERS AND EMPLOYEES; AND
  (8) PROVIDING A MECHANISM FOR WINDING UP THE OPERATIONS OF THE COMMIS-
SION  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.
  (D)  THE COMMISSION SHALL PUBLISH ITS BY-LAWS IN A CONVENIENT FORM AND
FILE A COPY THEREOF AND A COPY OF ANY AMENDMENT THERETO, WITH THE APPRO-
PRIATE AGENCY OR OFFICER IN EACH OF THE COMPACTING STATES.
  (E) A MANAGEMENT COMMITTEE COMPRISING NO MORE  THAN  FOURTEEN  MEMBERS
SHALL BE ESTABLISHED AS FOLLOWS:
  (1) 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 AS OF DECEMBER THIRTY-FIRST OF THE PRIOR YEAR;
  (2)  FOUR  MEMBERS  FROM  THOSE  COMPACTING  STATES  WITH AT LEAST TWO
PERCENT OF THE MARKET BASED ON THE PREMIUM VOLUME DESCRIBED IN PARAGRAPH
ONE OF THIS SUBSECTION, OTHER THAN SIX COMPACTING STATES WITH THE  LARG-
EST  PREMIUM  VOLUME,  SELECTED  ON  A ROTATING BASIS AS PROVIDED IN THE
BY-LAWS; AND

A. 6191                             7

  (3) FOUR MEMBERS FROM THOSE  COMPACTING  STATES  WITH  LESS  THAN  TWO
PERCENT  OF  THE  MARKET, BASED ON THE PREMIUM VOLUME DESCRIBED IN PARA-
GRAPH ONE OF THIS SUBSECTION, WITH ONE SELECTED FROM EACH  OF  THE  FOUR
ZONE REGIONS OF THE NAIC AS PROVIDED IN THE BY-LAWS.
  (F)  THE  MANAGEMENT COMMITTEE SHALL HAVE SUCH AUTHORITY AND DUTIES AS
MAY BE SET FORTH IN THE BY-LAWS, INCLUDING BUT NOT LIMITED TO:
  (1) MANAGING THE AFFAIRS OF THE COMMISSION IN A MANNER CONSISTENT WITH
THE BY-LAWS AND PURPOSES OF THE COMMISSION;
  (2) 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;
  (3) OVERSEEING THE OFFICES OF THE COMMISSION; AND
  (4) PLANNING, IMPLEMENTING, AND COORDINATING COMMUNICATIONS AND ACTIV-
ITIES  WITH  OTHER  STATE, FEDERAL AND LOCAL GOVERNMENT ORGANIZATIONS IN
ORDER TO ADVANCE THE GOALS OF THE COMMISSION.
  (G) THE COMMISSION SHALL ELECT ANNUALLY OFFICERS FROM  THE  MANAGEMENT
COMMITTEE,  WITH EACH HAVING SUCH AUTHORITY AND DUTIES, AS MAY BE SPECI-
FIED IN THE BY-LAWS.
  (H) 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  COMMIS-
SION  MAY DEEM APPROPRIATE. THE EXECUTIVE DIRECTOR SHALL SERVE AS SECRE-
TARY 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.
  (I)  A  LEGISLATIVE  COMMITTEE  COMPRISING  STATE LEGISLATORS OR THEIR
DESIGNEES SHALL BE ESTABLISHED TO MONITOR THE OPERATIONS  OF,  AND  MAKE
RECOMMENDATIONS   TO,  THE  COMMISSION;  PROVIDED  THAT  THE  MANNER  OF
SELECTION AND TERM OF ANY LEGISLATIVE COMMITTEE MEMBER SHALL BE  AS  SET
FORTH  IN  THE  BY-LAWS.  PRIOR TO THE ADOPTION BY THE COMMISSION OF ANY
UNIFORM STANDARD, REVISION  TO  THE  BY-LAWS,  ANNUAL  BUDGET  OR  OTHER
SIGNIFICANT  MATTER  AS  MAY  BE PROVIDED IN THE BY-LAWS, THE MANAGEMENT
COMMITTEE SHALL CONSULT WITH AND REPORT TO THE LEGISLATIVE COMMITTEE.
  (J) THE COMMISSION SHALL ESTABLISH TWO  ADVISORY  COMMITTEES,  ONE  OF
WHICH  SHALL COMPRISE CONSUMER REPRESENTATIVES INDEPENDENT OF THE INSUR-
ANCE INDUSTRY AND THE  OTHER  COMPRISING  INSURANCE  INDUSTRY  REPRESEN-
TATIVES.
  (K) THE COMMISSION MAY ESTABLISH ADDITIONAL ADVISORY COMMITTEES AS ITS
BY-LAWS MAY PROVIDE FOR THE CARRYING OUT OF ITS FUNCTIONS.
  (L)  THE  COMMISSION SHALL MAINTAIN ITS CORPORATE BOOKS AND RECORDS IN
ACCORDANCE WITH THE BY-LAWS.
  (M) THE MEMBERS, OFFICERS, EXECUTIVE DIRECTOR, EMPLOYEES AND REPRESEN-
TATIVES 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  LIABIL-
ITY  CAUSED  BY  OR  ARISING  OUT OF ANY ACTUAL OR ALLEGED ACT, ERROR OR
OMISSION THAT OCCURRED, OR THAT SUCH PERSON HAD A REASONABLE  BASIS  FOR
BELIEVING  OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES OR
RESPONSIBILITIES; PROVIDED,  THAT  NOTHING  IN  THIS  SECTION  SHALL  BE
CONSTRUED  TO PROTECT ANY SUCH PERSON FROM SUIT AND/OR LIABILITY FOR ANY

A. 6191                             8

DAMAGE, LOSS, INJURY OR LIABILITY CAUSED BY THE INTENTIONAL  OR  WILLFUL
AND WANTON MISCONDUCT OF THAT PERSON.
  (N)  THE COMMISSION SHALL DEFEND ANY MEMBER, OFFICER, EXECUTIVE DIREC-
TOR, 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  EMPLOY-
MENT, DUTIES OR RESPONSIBILITIES, OR THAT THE DEFENDANT HAD A REASONABLE
BASIS  FOR BELIEVING OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT,
DUTIES OR RESPONSIBILITIES; PROVIDED, THAT NOTHING IN THIS SECTION SHALL
BE CONSTRUED TO PROHIBIT THAT PERSON FROM RETAINING HIS OR HER OWN COUN-
SEL; 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.
  (O) THE COMMISSION SHALL INDEMNIFY AND HOLD HARMLESS ANY MEMBER, OFFI-
CER, EXECUTIVE DIRECTOR, EMPLOYEE OR REPRESENTATIVE  OF  THE  COMMISSION
FOR  THE  AMOUNT  OF  ANY  SETTLEMENT  OR JUDGMENT OBTAINED AGAINST SUCH
PERSONS ARISING OUT OF ANY ACTUAL OR ALLEGED ACT, ERROR OR OMISSION THAT
OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES OR  RESPONSI-
BILITIES,  OR  THAT  SUCH  PERSON  HAD  A REASONABLE BASIS FOR BELIEVING
OCCURRED WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES OR  RESPONSI-
BILITIES,  PROVIDED,  THAT  THE ACTUAL OR ALLEGED ACT, ERROR OR OMISSION
DID NOT RESULT FROM THE INTENTIONAL OR WILLFUL AND WANTON MISCONDUCT  OF
ANY SUCH PERSON.
  S  8807. MEETINGS AND ACTS OF THE COMMISSION. (A) THE COMMISSION SHALL
MEET AND TAKE SUCH ACTIONS AS ARE CONSISTENT WITH THE PROVISIONS OF THIS
COMPACT AND THE BY-LAWS.
  (B) EACH MEMBER OF THE COMMISSION SHALL HAVE THE RIGHT  AND  POWER  TO
CAST  A  VOTE  TO WHICH THAT COMPACTING STATE IS ENTITLED AND TO PARTIC-
IPATE IN THE BUSINESS AND AFFAIRS OF THE COMMISSION. A MEMBER SHALL VOTE
IN PERSON OR BY SUCH OTHER MEANS AS PROVIDED IN THE BY-LAWS. THE BY-LAWS
MAY PROVIDE FOR MEMBERS' PARTICIPATION IN MEETINGS BY TELEPHONE OR OTHER
MEANS OF COMMUNICATION.
  (C) THE COMMISSION SHALL MEET AT LEAST ONCE DURING EACH CALENDAR YEAR.
ADDITIONAL MEETINGS SHALL BE HELD AS SET FORTH IN THE BY-LAWS.
  S 8808. RULES AND OPERATING PROCEDURES; RULE MAKING FUNCTIONS  OF  THE
COMMISSION AND OPTING OUT OF UNIFORM STANDARDS. (A) THE COMMISSION SHALL
PROMULGATE  REASONABLE  RULES, INCLUDING UNIFORM STANDARDS AND OPERATING
PROCEDURES, IN ORDER TO EFFECTIVELY AND EFFICIENTLY ACHIEVE THE PURPOSES
OF THE COMPACT. NOTWITHSTANDING THE FOREGOING, IN THE EVENT THE  COMMIS-
SION  EXERCISES ITS RULE MAKING AUTHORITY IN A MANNER THAT IS BEYOND THE
SCOPE OF THE PURPOSES OF THIS ARTICLE, OR THE  POWERS  GRANTED  IN  THIS
SECTION, THEN SUCH ACTION BY THE COMMISSION SHALL BE INVALID AND HAVE NO
FORCE AND EFFECT.
  (B)  RULES  AND  OPERATING PROCEDURES SHALL BE MADE PURSUANT TO A RULE
MAKING 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 COMMIS-
SION SHALL GIVE WRITTEN NOTICE TO THE RELEVANT STATE LEGISLATIVE COMMIT-
TEE  IN  EACH  COMPACTING  STATE RESPONSIBLE FOR INSURANCE ISSUES OF ITS
INTENTION TO ADOPT SUCH UNIFORM STANDARD. THE COMMISSION IN  ADOPTING  A
UNIFORM  STANDARD SHALL CONSIDER FULLY ALL SUBMITTED MATERIALS AND ISSUE
A CONCISE EXPLANATION OF ITS DECISION.
  (C) A UNIFORM STANDARD SHALL BECOME EFFECTIVE NINETY  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

A. 6191                             9

AS  ANY  ACTION BY A COMPACTING STATE TO DECLINE TO ADOPT OR PARTICIPATE
IN A PROMULGATED UNIFORM STANDARD. ALL OTHER RULES AND OPERATING  PROCE-
DURES,  AND  AMENDMENTS  THERETO,  SHALL BECOME EFFECTIVE AS OF THE DATE
SPECIFIED IN EACH RULE, OPERATING PROCEDURE OR AMENDMENT.
  (D)  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. IF A COMPACT-
ING STATE ELECTS TO OPT OUT OF A UNIFORM STANDARD BY REGULATION, IT MUST
GIVE  WRITTEN  NOTICE  TO THE COMMISSION NO LATER THAN TEN BUSINESS DAYS
AFTER THE LATER OF THE UNIFORM STANDARD IS PROMULGATED OR  AT  THE  TIME
THE STATE BECOMES A COMPACTING STATE, AND FIND THAT THE UNIFORM STANDARD
DOES  NOT  PROVIDE  REASONABLE  PROTECTIONS TO THE CITIZENS OF THE STATE
GIVEN THE CONDITIONS IN THE STATE. THE COMMISSIONER 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 DEPAR-
TURE FROM THE UNIFORM STANDARD AND DETERMINING THAT THE UNIFORM STANDARD
WOULD NOT REASONABLY PROTECT THE CITIZENS OF THE STATE. THE COMMISSIONER
MUST CONSIDER AND BALANCE THE FOLLOWING FACTORS AND FIND THAT THE CONDI-
TIONS IN THE STATE AND NEEDS OF THE CITIZENS OF THE STATE OUTWEIGH:
  (1) 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 ARTICLE; AND
  (2) THE PRESUMPTION THAT A UNIFORM STANDARD ADOPTED BY THE  COMMISSION
PROVIDES REASONABLE PROTECTIONS TO CONSUMERS OF THE RELEVANT PRODUCT.
  NOTWITHSTANDING  THE FOREGOING, A COMPACTING STATE MAY, AT THE TIME OF
ITS ENACTMENT OF THE COMPACT, PROSPECTIVELY OPT OUT OF ALL UNIFORM STAN-
DARDS INVOLVING THE  LONG-TERM  CARE  INSURANCE  PRODUCTS  BY  EXPRESSLY
PROVIDING  FOR  SUCH  OPT  OUT  IN THE ENACTED COMPACT, AND SUCH OPT OUT
SHALL NOT BE TREATED AS A MATERIAL VARIANCE IN THE OFFER  OR  ACCEPTANCE
OF  ANY  STATE  TO  PARTICIPATE IN THE COMPACT. SUCH AN OPT OUT SHALL BE
EFFECTIVE AT THE TIME OF ENACTMENT OF  THE  COMPACT  BY  THE  COMPACTING
STATE  AND SHALL APPLY TO ALL EXISTING UNIFORM STANDARDS INVOLVING LONG-
TERM CARE INSURANCE PRODUCTS AND THOSE SUBSEQUENTLY PROMULGATED.
  (E) IF A COMPACTING STATE ELECTS TO OPT OUT OF A UNIFORM STANDARD, THE
UNIFORM STANDARD SHALL REMAIN APPLICABLE IN THE COMPACTING STATE  ELECT-
ING  TO  OPT OUT UNTIL SUCH TIME THE OPT OUT LEGISLATION IS ENACTED INTO
LAW OR THE REGULATION OPTING OUT BECOMES EFFECTIVE.
  (F) ONCE 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 STAND-
ARD  HAS  BEEN  MADE EFFECTIVE IN THAT STATE, THE OPT OUT SHALL HAVE THE
SAME PROSPECTIVE EFFECT AS PROVIDED UNDER SECTION EIGHT  THOUSAND  EIGHT
HUNDRED FIFTEEN OF THIS ARTICLE FOR WITHDRAWALS.
  (G) 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 FIFTEEN 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 NINETY  DAYS,
UNLESS  AFFIRMATIVELY  EXTENDED  BY  THE COMMISSION; PROVIDED HOWEVER, A

A. 6191                            10

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 RULE MAKING PROCESS HAS BEEN TERMINATED.
  (H)  NOT LATER THAN THIRTY 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, HOWEVER, 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 PETI-
TIONER 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.
  S  8809.  COMMISSION RECORDS AND ENFORCEMENT. (A) 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, INCLUD-
ING 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.
  (B) 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 HOWEVER, THAT DISCLOSURE TO THE COMMISSION SHALL NOT BE  DEEMED
TO  WAIVE  OR  OTHERWISE  AFFECT  ANY  CONFIDENTIALITY  REQUIREMENT; AND
PROVIDED FURTHER THAT, EXCEPT AS OTHERWISE EXPRESSLY  PROVIDED  IN  THIS
ARTICLE, THE COMMISSION SHALL NOT BE SUBJECT TO THE LAWS OF ANY COMPACT-
ING  STATE  PERTAINING TO CONFIDENTIALITY AND NONDISCLOSURE WITH RESPECT
TO RECORDS, DATA AND INFORMATION IN ITS POSSESSION. CONFIDENTIAL  INFOR-
MATION  OF  THE COMMISSION SHALL REMAIN CONFIDENTIAL AFTER SUCH INFORMA-
TION IS PROVIDED TO ANY COMMISSIONER.
  (C) THE COMMISSION SHALL MONITOR COMPACTING STATES FOR COMPLIANCE WITH
DULY ADOPTED BY-LAWS, RULES, INCLUDING UNIFORM STANDARDS, AND  OPERATING
PROCEDURES.  THE  COMMISSION  SHALL  NOTIFY SUCH NONCOMPLYING COMPACTING
STATE IN WRITING OF ITS NONCOMPLIANCE WITH COMMISSION BY-LAWS, RULES  OR
OPERATING  PROCEDURES.  IF  THE  NONCOMPLYING  COMPACTING STATE FAILS TO
REMEDY SUCH NONCOMPLIANCE WITHIN THE TIME SPECIFIED  IN  THE  NOTICE  OF
NONCOMPLIANCE,  THE COMPACTING STATE SHALL BE DEEMED TO BE IN DEFAULT AS
SET FORTH IN SECTION EIGHT THOUSAND EIGHT HUNDRED FIFTEEN OF THIS  ARTI-
CLE.
  (D) 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:
  (1) 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

A. 6191                            11

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.
  (2)  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.
  S  8810.  DISPUTE  RESOLUTION.  THE 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 COMPACT-
ING  STATES, OR BETWEEN COMPACTING STATES AND NON-COMPACTING STATES, AND
THE COMMISSION SHALL PROMULGATE AN  OPERATING  PROCEDURE  PROVIDING  FOR
RESOLUTION OF SUCH DISPUTES.
  S  8811.  PRODUCT  FILING  AND  APPROVAL. (A) INSURERS AND THIRD-PARTY
FILERS SEEKING TO HAVE A PRODUCT APPROVED BY THE COMMISSION  SHALL  FILE
SUCH  PRODUCT  WITH,  AND PAY APPLICABLE FILING FEES TO, THE COMMISSION.
NOTHING IN THIS ARTICLE SHALL BE  CONSTRUED  TO  RESTRICT  OR  OTHERWISE
PREVENT AN INSURER FROM FILING ITS PRODUCT WITH THE INSURANCE DEPARTMENT
IN ANY STATE WHEREIN SUCH INSURER IS LICENSED TO CONDUCT THE BUSINESS OF
INSURANCE,  AND  SUCH  FILING SHALL BE SUBJECT TO THE LAWS OF THE STATES
WHERE FILED.
  (B) THE COMMISSION SHALL ESTABLISH APPROPRIATE FILING AND REVIEW PROC-
ESSES AND PROCEDURES PURSUANT TO COMMISSION RULES AND  OPERATING  PROCE-
DURES.  NOTWITHSTANDING  ANY  PROVISION IN THIS SECTION TO THE CONTRARY,
THE COMMISSION SHALL PROMULGATE RULES TO ESTABLISH CONDITIONS AND PROCE-
DURES 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  INFORMA-
TION,  AS  WELL AS PROTECTION OF PERSONAL MEDICAL AND FINANCIAL INFORMA-
TION AND TRADE SECRETS, THAT MAY BE CONTAINED IN  A  PRODUCT  FILING  OR
SUPPORTING INFORMATION.
  (C)  ANY  PRODUCT  APPROVED BY THE COMMISSION MAY BE SOLD OR OTHERWISE
ISSUED IN THOSE COMPACTING  STATES  IN  WHICH  THE  INSURER  IS  LEGALLY
AUTHORIZED TO DO BUSINESS.
  S  8812.  REVIEW  OF  COMMISSION  DECISIONS REGARDING FILINGS. (A) NOT
LATER THAN THIRTY DAYS AFTER THE COMMISSION HAS GIVEN NOTICE OF A DISAP-
PROVED PRODUCT OR ADVERTISEMENT FILED WITH THE COMMISSION,  THE  INSURER
OR  THIRD PARTY FILER WHOSE FILING WAS DISAPPROVED MAY APPEAL THE DETER-
MINATION TO A REVIEW PANEL APPOINTED BY THE COMMISSION.  THE  COMMISSION
SHALL  PROMULGATE  RULES  TO  ESTABLISH  PROCEDURES  FOR APPOINTING SUCH
REVIEW PANEL 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 LAW, IS SUBJECT
TO JUDICIAL REVIEW IN ACCORDANCE WITH SUBSECTION (E)  OF  SECTION  EIGHT
THOUSAND EIGHT HUNDRED FOUR OF THIS ARTICLE.
  (B)  THE COMMISSION SHALL HAVE AUTHORITY TO MONITOR, REVIEW AND RECON-
SIDER PRODUCTS AND ADVERTISEMENT SUBSEQUENT TO THEIR FILING OR  APPROVAL
UPON A FINDING THAT THE PRODUCT DOES NOT MEET THE RELEVANT UNIFORM STAN-
DARD.  WHERE  APPROPRIATE,  THE  COMMISSION  MAY  WITHDRAW OR MODIFY ITS

A. 6191                            12

APPROVAL AFTER PROPER NOTICE AND HEARING, SUBJECT TO THE APPEAL  PROCESS
SET FORTH IN SUBSECTION (A) OF THIS SECTION.
  S  8813.  FINANCE.  (A)  THE  COMMISSION  SHALL PAY OR PROVIDE FOR THE
PAYMENT OF THE REASONABLE EXPENSES OF ITS  ESTABLISHMENT  AND  ORGANIZA-
TION.  TO  FUND  THE  COST OF ITS INITIAL OPERATIONS, THE COMMISSION MAY
ACCEPT CONTRIBUTIONS AND OTHER FORMS OF FUNDING FROM THE NAIC,  COMPACT-
ING  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.
  (B) 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.
  (C) 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 SECTION
EIGHT THOUSAND EIGHT HUNDRED EIGHT OF THIS ARTICLE.
  (D) THE COMMISSION SHALL BE EXEMPT FROM ALL TAXATION  IN  AND  BY  THE
COMPACTING STATES.
  (E)  THE  COMMISSION  SHALL  NOT  PLEDGE  THE CREDIT OF ANY COMPACTING
STATE, EXCEPT BY AND  WITH  THE  APPROPRIATE  LEGAL  AUTHORITY  OF  THAT
COMPACTING STATE.
  (F)  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  BY-LAWS.  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 SUCH 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 SUCH 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 INDE-
PENDENT  AUDIT  AND ANY INFORMATION REGARDING THE PRIVACY OF INDIVIDUALS
AND INSURERS' PROPRIETARY INFORMATION, INCLUDING  TRADE  SECRETS,  SHALL
REMAIN CONFIDENTIAL.
  (G)  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.
  S 8814. COMPACTING STATES, EFFECTIVE DATE AND AMENDMENT. (A) ANY STATE
IS ELIGIBLE TO BECOME A COMPACTING STATE.
  (B)  THE  COMPACT  SHALL BECOME EFFECTIVE AND BINDING UPON LEGISLATIVE
ENACTMENT OF THE COMPACT INTO LAW BY  TWO  COMPACTING  STATES;  PROVIDED
HOWEVER,  THAT  THE  COMMISSION  SHALL  BECOME EFFECTIVE FOR PURPOSES OF
ADOPTING UNIFORM STANDARDS FOR REVIEWING, AND GIVING APPROVAL OR  DISAP-
PROVAL  OF,  PRODUCTS  FILED WITH THE COMMISSION THAT SATISFY APPLICABLE
UNIFORM STANDARDS ONLY AFTER TWENTY-SIX STATES ARE COMPACTING STATES OR,
ALTERNATIVELY, BY STATES REPRESENTING GREATER THAN FORTY 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.

A. 6191                            13

  (C)  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.
  S  8815.  WITHDRAWAL,  DEFAULT AND TERMINATION. (A)(1) 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  SPECIF-
ICALLY REPEALING THE STATUTE WHICH ENACTED THE COMPACT INTO LAW.
  (2)  THE  EFFECTIVE  DATE  OF  WITHDRAWAL IS THE EFFECTIVE DATE OF THE
REPEALING STATUTE.  HOWEVER, THE WITHDRAWAL SHALL NOT APPLY TO ANY PROD-
UCT 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  PARAGRAPH
FIVE OF THIS SUBSECTION.
  (3) 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.
  (4)  THE  COMMISSION  SHALL  NOTIFY THE OTHER COMPACTING STATES OF THE
INTRODUCTION OF SUCH LEGISLATION WITHIN TEN DAYS AFTER  ITS  RECEIPT  OF
NOTICE THEREOF.
  (5)  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 PROSPEC-
TIVE DISAPPROVAL OF PRODUCTS OR ADVERTISEMENT PREVIOUSLY APPROVED  UNDER
STATE LAW.
  (6)  REINSTATEMENT  FOLLOWING WITHDRAWAL OF ANY COMPACTING STATE SHALL
OCCUR UPON THE EFFECTIVE DATE OF  THE  WITHDRAWING  STATE'S  LEGISLATION
REENACTING THE COMPACT.
  (B)  (1) 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 BY-LAWS OR  DULY
PROMULGATED  RULES OR OPERATING PROCEDURES, THEN, AFTER NOTICE AND HEAR-
ING AS SET FORTH IN THE BY-LAWS, ALL  RIGHTS,  PRIVILEGES  AND  BENEFITS
CONFERRED BY THE 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 SUSPEN-
SION 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 THE COMPACT SHALL BE TERMINATED FROM THE EFFECTIVE
DATE OF TERMINATION.

A. 6191                            14

  (2) PRODUCT APPROVALS BY THE  COMMISSION  OR  PRODUCT  SELF-CERTIFICA-
TIONS, 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 WITH-
DRAWN VOLUNTARILY UNDER THIS SECTION.
  (3)  REINSTATEMENT  FOLLOWING  TERMINATION  OF  ANY  COMPACTING  STATE
REQUIRES A REENACTMENT OF THE COMPACT BY THAT STATE.
  (C)(1) 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.
  (2)  UPON THE DISSOLUTION OF THE 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 BY-LAWS.
  S 8816. SEVERABILITY AND  CONSTRUCTION.  (A)  THE  PROVISIONS  OF  THE
COMPACT  SHALL  BE  SEVERABLE;  AND  IF  ANY PHRASE, CLAUSE, SENTENCE OR
PROVISION IS DEEMED  UNENFORCEABLE,  THE  REMAINING  PROVISIONS  OF  THE
COMPACT SHALL BE ENFORCEABLE.
  (B)  THE  PROVISIONS  OF  THE  COMPACT SHALL BE LIBERALLY CONSTRUED TO
EFFECTUATE ITS PURPOSES.
  S 8817. BINDING EFFECT OF COMPACT AND OTHER LAWS. (A) NOTHING IN  THIS
SECTION PREVENTS THE ENFORCEMENT OF ANY OTHER LAW OF A COMPACTING STATE,
EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION.
  (B)  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 COMMIS-
SIONER MAY APPLY TO THE CONTENT OF  THE  ADVERTISEMENT.  NOTWITHSTANDING
THE  FOREGOING,  NO  ACTION  TAKEN  BY  THE COMMISSION SHALL ABROGATE OR
RESTRICT:
  (1) THE ACCESS OF ANY PERSON TO STATE COURTS;
  (2) REMEDIES AVAILABLE UNDER STATE LAW RELATED TO BREACH OF  CONTRACT,
TORT OR OTHER LAWS NOT SPECIFICALLY DIRECTED TO THE CONTENT OF THE PROD-
UCT;
  (3) STATE LAW RELATING TO THE CONSTRUCTION OF INSURANCE CONTRACTS; OR
  (4)  THE AUTHORITY OF THE ATTORNEY GENERAL OF THE STATE INCLUDING, BUT
NOT LIMITED TO, MAINTAINING ANY ACTIONS OR PROCEEDINGS AS AUTHORIZED  BY
LAW.
  (C)  ALL  INSURANCE  PRODUCTS  FILED  WITH  INDIVIDUAL STATES SHALL BE
SUBJECT TO THE LAWS OF THOSE STATES.
  (D) ALL LAWFUL ACTIONS OF THE  COMMISSION,  INCLUDING  ALL  RULES  AND
OPERATING PROCEDURES PROMULGATED BY THE COMMISSION, ARE BINDING UPON THE
COMPACTING STATES.
  (E)  ALL  AGREEMENTS  BETWEEN THE COMMISSION AND THE COMPACTING STATES
ARE BINDING IN ACCORDANCE WITH THEIR TERMS.
  (F) 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 DISPUTED MEANING OR INTERPRETATION.
  (G)  IN  THE EVENT ANY PROVISION OF THIS ARTICLE EXCEEDS THE CONSTITU-
TIONAL 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  SUCH

A. 6191                            15

COMPACTING  STATE,  AND SUCH OBLIGATIONS, DUTIES, POWERS OR JURISDICTION
SHALL REMAIN IN THE COMPACTING STATE AND SHALL BE EXERCISED BY THE AGEN-
CY THEREOF TO WHICH SUCH OBLIGATIONS, DUTIES, POWERS OR JURISDICTION ARE
DELEGATED BY LAW IN EFFECT AT THE TIME THE COMPACT BECOMES EFFECTIVE.
  S  3.  This  act  shall take effect upon the enactment into law by two
compacting states of legislation having an identical  effect  with  this
act, but if the compacting states shall have already enacted such legis-
lation, this act shall take effect immediately; provided that the super-
intendent  of  insurance  shall  notify  the  legislative  bill drafting
commission upon the occurrence  of  the  enactment  of  the  legislation
provided for in section two of this act in order that the commission may
maintain an accurate and timely effective data base of the official text
of  the laws of the state of New York in furtherance of effectuating the
provisions of section 44 of the legislative law and section 70-b of  the
public officers law.