S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5106
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 7, 2019
                                ___________
 
 Introduced by M. of A. TITUS, STECK, WEPRIN, QUART, HEVESI, COOK -- read
   once and referred to the Committee on Insurance
 
 AN  ACT  to  amend  the  insurance  law, in relation to establishing the
   interstate insurance product regulation compact  to  regulate  certain
   insurance  products;  and  providing for the repeal of such provisions
   upon expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   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.
   § 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07703-01-9

 A. 5106                             2
 
         8804. ESTABLISHMENT OF THE COMMISSION AND VENUE.
         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.
   § 8801. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE  CITED  AS
 THE "INTERSTATE INSURANCE PRODUCT REGULATION COMPACT".
   §  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.
   § 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.

 A. 5106                             3
 
   (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.
   (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.
   §  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  UNLESS
 OTHERWISE  SPECIFICALLY  PROVIDED  IN  THIS  COMPACT, EXCEPT THAT, IN NO
 EVENT SHALL THE OBLIGATIONS OF THE COMMISSION BE THE DEBT OF  THE  STATE

 A. 5106                             4
 
 OF  NEW YORK NOR SHALL ANY REVENUES OR PROPERTY OF THE STATE OF NEW YORK
 BE LIABLE THEREFOR.
   (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.
   § 8805. POWERS OF THE COMMISSION. (A) THE COMMISSION  SHALL  HAVE  THE
 FOLLOWING POWERS:
   (1)  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;
   (2) 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;
   (3) 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;
   (4) 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;
   (5) 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;
   (6) TO PROMULGATE OPERATING  PROCEDURES,  PURSUANT  TO  SECTION  EIGHT
 THOUSAND  EIGHT HUNDRED EIGHT OF THIS ARTICLE, WHICH SHALL BE BINDING IN

 A. 5106                             5
 
 THE COMPACTING STATES TO THE EXTENT AND IN THE MANNER  PROVIDED  IN  THE
 COMPACT;
   (7) 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;
   (8) TO ISSUE SUBPOENAS  REQUIRING  THE  ATTENDANCE  AND  TESTIMONY  OF
 WITNESSES AND THE PRODUCTION OF EVIDENCE;
   (9) TO ESTABLISH AND MAINTAIN OFFICES;
   (10) TO PURCHASE AND MAINTAIN INSURANCE AND BONDS;
   (11)  TO BORROW, ACCEPT OR CONTRACT FOR SERVICES OF PERSONNEL, INCLUD-
 ING, BUT NOT LIMITED TO, EMPLOYEES OF A COMPACTING STATE;
   (12) 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;
   (13)  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;
   (14)  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;
   (15) TO SELL, CONVEY, MORTGAGE, PLEDGE, LEASE,  EXCHANGE,  ABANDON  OR
 OTHERWISE DISPOSE OF ANY PROPERTY, REAL, PERSONAL OR MIXED;
   (16)  TO REMIT FILING FEES TO COMPACTING STATES AS MAY BE SET FORTH IN
 THE BY-LAWS, RULES OR OPERATING PROCEDURES;
   (17) TO ENFORCE COMPLIANCE BY COMPACTING STATES  WITH  RULES,  UNIFORM
 STANDARDS, OPERATING PROCEDURES AND BY-LAWS;
   (18) TO PROVIDE FOR DISPUTE RESOLUTION AMONG COMPACTING STATES;
   (19)  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;
   (20) 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;
   (21) TO ESTABLISH A BUDGET AND MAKE EXPENDITURES;
   (22) TO BORROW MONEY;
   (23)  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;
   (24) TO PROVIDE AND RECEIVE INFORMATION FROM, AND  TO  COOPERATE  WITH
 LAW ENFORCEMENT AGENCIES;
   (25) TO ADOPT AND USE A CORPORATE SEAL; AND
   (26)  TO PERFORM SUCH OTHER FUNCTIONS AS MAY BE NECESSARY OR APPROPRI-
 ATE TO ACHIEVE THE PURPOSES OF THIS COMPACT CONSISTENT  WITH  THE  STATE
 REGULATION OF THE BUSINESS OF INSURANCE.
   (B)  ALL DONATIONS, GRANTS OF MONEY, EQUIPMENT, SUPPLIES, MATERIALS OR
 SERVICES, PURCHASES, GIFTS, DONATIONS, CONVEYANCES, MORTGAGES,  PLEDGES,
 LEASES  AND  EXCHANGES, AS AUTHORIZED BY SUBSECTION (A) OF THIS SECTION,
 RECEIVED BY OR ON BEHALF OF THE  COMMISSION  SHALL  BE  LIMITED  TO  THE

 A. 5106                             6
 
 DIRECT  FUNDING  OF  THE LAWFUL AND AUTHORIZED OPERATIONS OF THE COMMIS-
 SION.
   §  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
 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.

 A. 5106                             7
 
   (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
   (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.

 A. 5106                             8
 
   (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  ACTION  TAKEN
 REASONABLY  AND  IN GOOD FAITH WHICH RESULTS IN A 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 SUCH PERSON  HAD  A  REASONABLE  BASIS  FOR  BELIEVING
 OCCURRED  WITHIN THE SCOPE OF COMMISSION EMPLOYMENT, DUTIES OR RESPONSI-
 BILITIES; PROVIDED, THAT NOTHING IN THIS SECTION 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) 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.
   § 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.
   §  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.

 A. 5106                             9
 
   (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
 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-

 A. 5106                            10
 
 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
 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.
   §  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

 A. 5106                            11
 
 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
 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.
   § 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.
   § 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.
   § 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-

 A. 5106                            12
 
 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
 APPROVAL AFTER PROPER NOTICE AND HEARING, SUBJECT TO THE APPEAL  PROCESS
 SET FORTH IN SUBSECTION (A) OF THIS SECTION.
   §  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.

 A. 5106                            13
 
   § 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.
   (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.
   § 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

 A. 5106                            14
 
 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.
   (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.
   § 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.
   § 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.

 A. 5106                            15

   (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
 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.
   § 3. This act shall take effect January 1, 2020 and shall  expire  and
 be deemed repealed December 31, 2022; provided, however, that any policy
 or contract issued during the period that the provisions of this act are
 in  effect  that  has been approved in accordance with the provisions of
 this act shall continue in full force and effect.