Section 1.

new text begin [43A.312] CENTER FOR HEALTH CARE PURCHASING
IMPROVEMENT.
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Sec. 6.

new text begin [61A.65] INTERSTATE INSURANCE PRODUCT REGULATION
COMPACT.
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new text begin Article I. Purposes
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new text begin The purposes of this Compact are, through means of joint and cooperative action
among the Compacting States:
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new text begin 1. To promote and protect the interest of consumers of individual and group annuity,
life insurance, disability income and long-term care insurance products;
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new text begin 2. To develop uniform standards for insurance products covered under the Compact;
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new text begin 3. 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;
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new text begin 4. To give appropriate regulatory approval to those product filings and
advertisements satisfying the applicable uniform standard;
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new text begin 5. 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;
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new text begin 6. To create the Interstate Insurance Product Regulation Commission; and
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new text begin 7. To perform these and such other related functions as may be consistent with the
state regulation of the business of insurance.
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new text begin Article II. Definitions
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new text begin For purposes of this Compact:
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new text begin 1. "Advertisement" means any material designed to create public interest in
a Product, or induce the public to purchase, increase, modify, reinstate, borrow on,
surrender, replace or retain a policy, as more specifically defined in the Rules and
Operating Procedures of the Commission.
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new text begin 2. "Bylaws" mean those bylaws established by the Commission for its governance,
or for directing or controlling the Commission's actions or conduct.
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new text begin 3. "Compacting State" means any State which has enacted this Compact legislation
and which has not withdrawn pursuant to Article XIV, Section 1, or been terminated
pursuant to Article XIV, Section 2.
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new text begin 4. "Commission" means the "Interstate Insurance Product Regulation Commission"
established by this Compact.
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new text begin 5. "Commissioner" means the chief insurance regulatory official of a State including,
but not limited to commissioner, superintendent, director or administrator.
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new text begin 6. "Domiciliary State" means the state in which an Insurer is incorporated or
organized; or, in the case of an alien Insurer, its state of entry.
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new text begin 7. "Insurer" means any entity licensed by a State to issue contracts of insurance for
any of the lines of insurance covered by this Act.
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new text begin 8. "Member" means the person chosen by a Compacting State as its representative
to the Commission, or his or her designee.
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new text begin 9. "Noncompacting State" means any State which is not at the time a Compacting
State.
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new text begin 10. "Operating Procedures" mean procedures promulgated by the Commission
implementing a Rule, Uniform Standard, or a provision of this Compact.
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new text begin 11. "Product" means the form of a policy or contract, including any application,
endorsement, or related form which is attached to and made a part of the policy or
contract, and any evidence of coverage or certificate, for an individual or group annuity,
life insurance, disability income or long-term care insurance product that an Insurer is
authorized to issue.
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new text begin 12. "Rule" means a statement of general or particular applicability and future effect
promulgated by the Commission, including a Uniform Standard developed pursuant to
Article VII of this Compact, designed to implement, interpret, or prescribe law or policy
or describing the organization, procedure, or practice requirements of the Commission,
which shall have the force and effect of law in the Compacting States.
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new text begin 13. "State" means any state, district, or territory of the United States of America.
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new text begin 14. "Third Party Filer" means an entity that submits a Product filing to the
Commission on behalf of an Insurer.
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new text begin 15. "Uniform Standard" means a standard adopted by the Commission for a
Product line, pursuant to Article VII of this Compact, and shall include all of the Product
requirements in aggregate; provided, that each Uniform Standard shall be construed,
whether express or implied, to prohibit the use of any inconsistent, misleading or
ambiguous provisions in a Product and the form of the Product made available to the public
shall not be unfair, inequitable or against public policy as determined by the Commission.
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new text begin Article III. Establishment of the Commission and Venue
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new text begin 1. The Compacting States hereby create and establish a joint public agency known
as the "Interstate Insurance Product Regulation Commission." Pursuant to Article IV,
the Commission will have the power to develop Uniform Standards for Product lines,
receive and provide prompt review of Products filed therewith, and give approval to those
Product filings satisfying applicable Uniform Standards; provided, it is not intended for
the Commission to be the exclusive entity for receipt and review of insurance product
filings. Nothing herein shall prohibit any Insurer from filing its product in any State
wherein the Insurer is licensed to conduct the business of insurance; and any such filing
shall be subject to the laws of the State where filed.
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new text begin 2. The Commission is a body corporate and politic, and an instrumentality of the
Compacting States.
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new text begin 3. The Commission is solely responsible for its liabilities except as otherwise
specifically provided in this Compact.
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new text begin 4. Venue is proper and judicial proceedings by or against the Commission shall be
brought solely and exclusively in a Court of competent jurisdiction where the principal
office of the Commission is located.
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new text begin Article IV. Powers of the Commission
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new text begin The Commission shall have the following powers:
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new text begin 1. To promulgate Rules, pursuant to Article VII of this Compact, which shall have
the force and effect of law and shall be binding in the Compacting States to the extent and
in the manner provided in this Compact;
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new text begin 2. To exercise its rule-making authority and establish reasonable Uniform Standards
for Products covered under the Compact, and Advertisement related thereto, which
shall have the force and effect of law and shall be binding in the Compacting States,
but only for those Products filed with the Commission, provided, that a Compacting
State shall have the right to opt out of such Uniform Standard pursuant to Article VII, to
the extent and in the manner provided in this Compact, and, provided further, that any
Uniform Standard established by the Commission for long-term care insurance products
may provide the same or greater protections for consumers as, but shall not provide less
than, those protections set forth in the National Association of Insurance Commissioners'
Long-Term Care Insurance Model Act and Long-Term Care Insurance Model Regulation,
respectively, adopted as of 2001. The Commission shall consider whether any subsequent
amendments to the NAIC Long-Term Care Insurance Model Act or Long-Term Care
Insurance Model Regulation adopted by the NAIC require amending of the Uniform
Standards established by the Commission for long-term care insurance products;
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new text begin 3. To receive and review in an expeditious manner Products filed with the
Commission, and rate filings for disability income and long-term care insurance Products,
and give approval of those Products and rate filings that satisfy the applicable Uniform
Standard, where such approval shall have the force and effect of law and be binding on the
Compacting States to the extent and in the manner provided in the Compact;
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new text begin 4. To receive and review in an expeditious manner Advertisement relating to
long-term care insurance products for which Uniform Standards have been adopted by
the Commission, and give approval to all Advertisement that satisfies the applicable
Uniform Standard. For any product covered under this Compact, other than long-term
care insurance products, the Commission shall have the authority to require an insurer
to submit all or any part of its Advertisement with respect to that product for review or
approval prior to use, if the Commission determines that the nature of the product is such
that an Advertisement of the product could have the capacity or tendency to mislead the
public. The actions of 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;
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new text begin 5. To exercise its rule-making authority and designate Products and Advertisement
that may be subject to a self-certification process without the need for prior approval
by the Commission;
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new text begin 6. To promulgate Operating Procedures, pursuant to Article VII of this Compact,
which shall be binding in the Compacting States to the extent and in the manner provided
in this compact;
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new text begin 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;
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new text begin 8. To issue subpoenas requiring the attendance and testimony of witnesses and the
production of evidence;
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new text begin 9. To establish and maintain offices;
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new text begin 10. To purchase and maintain insurance and bonds;
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new text begin 11. To borrow, accept or contract for services of personnel, including, but not limited
to, employees of a Compacting State;
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new text begin 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;
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new text begin 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;
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new text begin 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;
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new text begin 15. To sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise
dispose of any property, real, personal or mixed;
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new text begin 16. To remit filing fees to Compacting States as may be set forth in the Bylaws,
Rules or Operating Procedures;
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new text begin 17. To enforce compliance by Compacting States with Rules, Uniform Standards,
Operating Procedures and Bylaws;
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new text begin 18. To provide for dispute resolution among Compacting States;
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new text begin 19. To advise Compacting States on issues relating to Insurers domiciled or doing
business in Noncompacting jurisdictions, consistent with the purposes of this Compact;
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new text begin 20. To provide advice and training to those personnel in state insurance departments
responsible for product review, and to be a resource for state insurance departments;
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new text begin 21. To establish a budget and make expenditures;
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new text begin 22. To borrow money;
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new text begin 23. To appoint committees, including advisory committees comprising Members,
state insurance regulators, state legislators or their representatives, insurance industry
and consumer representatives, and such other interested persons as may be designated
in the Bylaws;
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new text begin 24. To provide and receive information from, and to cooperate with law enforcement
agencies;
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new text begin 25. To adopt and use a corporate seal; and
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new text begin 26. To perform such other functions as may be necessary or appropriate to achieve
the purposes of this Compact consistent with the state regulation of the business of
insurance.
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new text begin Article V. Organization of the Commission
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new text begin 1. Membership, Voting and Bylaws
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new text begin a. Each Compacting State shall have and be limited to one Member. Each Member
shall be qualified to serve in that capacity pursuant to applicable law of the Compacting
State. Any Member may be removed or suspended from office as provided by the law
of the State from which he or she shall be appointed. Any vacancy occurring in the
Commission shall be filled in accordance with the laws of the Compacting State wherein
the vacancy exists. Nothing herein shall be construed to affect the manner in which a
Compacting State determines the election or appointment and qualification of its own
Commissioner.
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new text begin b. Each Member shall be entitled to one vote and shall have an opportunity
to participate in the governance of the Commission in accordance with the Bylaws.
Notwithstanding any provision herein to the contrary, no action of the Commission with
respect to the promulgation of a Uniform Standard shall be effective unless two-thirds of
the Members vote in favor thereof.
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new text begin c. The Commission shall, by a majority of the Members, prescribe Bylaws to govern
its conduct as may be necessary or appropriate to carry out the purposes, and exercise the
powers, of the Compact, including, but not limited to:
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new text begin i. Establishing the fiscal year of the Commission;
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new text begin ii. Providing reasonable procedures for appointing and electing members, as well as
holding meetings, of the Management Committee;
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new text begin iii. Providing reasonable standards and procedures: (i) for the establishment and
meetings of other committees, and (ii) governing any general or specific delegation of any
authority or function of the Commission;
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new text begin iv. Providing reasonable procedures for calling and conducting meetings 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 en toto or in part. As soon as practicable, the Commission must make
public (i) a copy of the vote to close the meeting revealing the vote of each Member with
no proxy votes allowed, and (ii) votes taken during such meeting;
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new text begin v. Establishing the titles, duties and authority and reasonable procedures for the
election of the officers of the Commission;
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new text begin vi. Providing reasonable standards and procedures for the establishment of the
personnel policies and programs of the Commission. Notwithstanding any civil service
or other similar laws of any Compacting State, the Bylaws shall exclusively govern the
personnel policies and programs of the Commission;
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new text begin vii. Promulgating a code of ethics to address permissible and prohibited activities of
commission members and employees; and
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new text begin viii. Providing a mechanism for winding up the operations of the Commission and
the equitable disposition of any surplus funds that may exist after the termination of the
Compact after the payment and/or reserving of all of its debts and obligations.
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new text begin d. The Commission shall publish its bylaws in a convenient form and file a copy
thereof and a copy of any amendment thereto, with the appropriate agency or officer in
each of the Compacting States.
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new text begin 2. Management Committee, Officers and Personnel
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new text begin a. A Management Committee comprising no more than 14 members shall be
established as follows:
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new text begin i. One member from each of the six Compacting States with the largest premium
volume for individual and group annuities, life, disability income and long-term care
insurance products, determined from the records of the NAIC for the prior year;
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new text begin ii. Four members from those Compacting States with at least two percent of the
market based on the premium volume described above, other than the six Compacting
States with the largest premium volume, selected on a rotating basis as provided in the
Bylaws; and
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new text begin iii. Four members from those Compacting States with less than two percent of the
market, based on the premium volume described above, with one selected from each of
the four zone regions of the NAIC as provided in the Bylaws.
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new text begin b. The Management Committee shall have such authority and duties as may be set
forth in the Bylaws, including but not limited to:
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new text begin i. Managing the affairs of the Commission in a manner consistent with the Bylaws
and purposes of the Commission;
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new text begin ii. 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;
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new text begin iii. Overseeing the offices of the Commission; and
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new text begin iv. Planning, implementing, and coordinating communications and activities with
other state, federal and local government organizations in order to advance the goals
of the Commission.
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new text begin c. The Commission shall elect annually officers from the Management Committee,
with each having such authority and duties, as may be specified in the Bylaws.
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new text begin d. The Management Committee may, subject to the approval of the Commission,
appoint or retain an executive director for such period, upon such terms and conditions
and for such compensation as the Commission may deem appropriate. The executive
director shall serve as secretary to the Commission, but shall not be a Member of the
Commission. The executive director shall hire and supervise such other staff as may be
authorized by the Commission.
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new text begin 3. Legislative and Advisory Committees
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new text begin a. A legislative committee comprising state legislators or their designees shall be
established to monitor the operations of, and make recommendations to, the Commission,
including the Management Committee; provided that the manner of selection and term of
any legislative committee member shall be as set forth in the Bylaws. Prior to the adoption
by the Commission of any Uniform Standard, revision to the Bylaws, annual budget or
other significant matter as may be provided in the Bylaws, the Management Committee
shall consult with and report to the legislative committee.
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new text begin b. The Commission shall establish two advisory committees, one of which shall
comprise consumer representatives independent of the insurance industry, and the other
comprising insurance industry representatives.
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new text begin c. The Commission may establish additional advisory committees as its Bylaws may
provide for the carrying out of its functions.
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new text begin 4. Corporate Records of the Commission
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new text begin The Commission shall maintain its corporate books and records in accordance
with the Bylaws.
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new text begin 5. Qualified Immunity, Defense, and Indemnification
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new text begin a. The Members, officers, executive director, employees, and representatives of
the Commission shall be immune from suit and liability, either personally or in their
official capacity, for any claim for damage to or loss of property or personal injury or
other civil liability caused by or arising out of any actual or alleged act, error or omission
that occurred, or that the person against whom the claim is made had a reasonable
basis for believing occurred within the scope of Commission employment, duties or
responsibilities; provided, that nothing in this paragraph shall be construed to protect any
such person from suit and/or liability for any damage, loss, injury or liability caused by
the intentional or willful and wanton misconduct of that person.
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new text begin b. The Commission shall defend any Member, officer, executive director, employee,
or representative of the Commission in any civil action seeking to impose liability arising
out of any actual or alleged act, error, or omission that occurred within the scope of
Commission employment, duties, or responsibilities, or that the person against whom
the claim is made had a reasonable basis for believing occurred within the scope of
Commission employment, duties, or responsibilities; provided, that nothing herein shall
be construed to prohibit that person from retaining his or her own counsel; and provided
further, that the actual or alleged act, error, or omission did not result from that person's
intentional or willful and wanton misconduct.
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new text begin c. The Commission shall indemnify and hold harmless any Member, officer,
executive director, employee, or representative of the Commission for the amount of any
settlement or judgment obtained against that person arising out of any actual or alleged
act, error, or omission that occurred within the scope of Commission employment, duties,
or responsibilities, or that such person had a reasonable basis for believing occurred
within the scope of Commission employment, duties, or responsibilities, provided, that the
actual or alleged act, error, or omission did not result from the intentional or willful and
wanton misconduct of that person.
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new text begin Article VI. Meetings and Acts of the Commission
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new text begin 1. The Commission shall meet and take such actions as are consistent with the
provisions of this Compact and the Bylaws.
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new text begin 2. Each Member of the Commission shall have the right and power to cast a vote to
which that Compacting State is entitled and to participate in the business and affairs of the
Commission. A Member shall vote in person or by such other means as provided in the
Bylaws. The Bylaws may provide for Members' participation in meetings by telephone or
other means of communication.
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new text begin 3. The Commission shall meet at least once during each calendar year. Additional
meeting shall be held as set forth in the Bylaws.
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new text begin Article VII. Rules and Operating Procedures: Rulemaking Functions
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new text begin of the Commission and Opting Out of Uniform Standards
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new text begin 1. Rulemaking Authority. The Commission shall promulgate reasonable Rules,
including Uniform Standards, and Operating Procedures in order to effectively and
efficiently achieve the purposes of this Compact. Notwithstanding the foregoing, in the
event the Commission exercises its rulemaking authority in a manner that is beyond the
scope of the purposes of this Act, or the powers granted hereunder, then such an action by
the Commission shall be invalid and have no force and effect.
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new text begin 2. Rulemaking Procedure. Rules and Operating Procedures shall be made pursuant
to a rulemaking process that conforms to the Model State Administrative Procedure Act of
1981 as amended, as may be appropriate to the operations of the Commission. Before
the Commission adopts a Uniform Standard, the Commission shall give written notice
to the relevant state legislative committee(s) in each Compacting State responsible for
insurance issues of its intention to adopt the Uniform Standard. The Commission in
adopting a Uniform Standard shall consider fully all submitted materials and issue a
concise explanation of its decision.
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new text begin 3. Effective Date and Opt Out of a Uniform Standard. A Uniform Standard shall
become effective 90 days after its promulgation by the Commission or such later date
as the Commission may determine; provided, however, that a Compacting State may
opt out of a Uniform Standard as provided in this Article. "Opt out" shall be defined as
any action by a Compacting State to decline to adopt or participate in a promulgated
Uniform Standard. All other Rules and Operating Procedures, and amendments thereto,
shall become effective as of the date specified in each Rule, Operating Procedure, or
amendment.
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new text begin 4. Opt Out Procedure. A Compacting State may opt out of a Uniform Standard,
either by legislation or regulation duly promulgated by the Insurance Department under
the Compacting State's Administrative Procedure Act. If a Compacting State elects to opt
out of a Uniform Standard by regulation, it must (a) give written notice to the Commission
no later than ten business days after the Uniform Standard is promulgated, or at the time
the State becomes a Compacting State and (b) find that the Uniform Standard does not
provide reasonable protections to the citizens of the State, given the conditions in the State.
The Commissioner shall make specific findings of fact and conclusions of law, based on a
preponderance of the evidence, detailing the conditions in the State which warrant a
departure from the Uniform Standard and determining that the Uniform Standard would
not reasonably protect the citizens of the State. The Commissioner must consider and
balance the following factors and find that the conditions in the State and needs of the
citizens of the State outweigh: (i) the intent of the legislature to participate in, and the
benefits of, an interstate agreement to establish national uniform consumer protections for
the Products subject to this Act; and (ii) the presumption that a Uniform Standard adopted
by the Commission provides reasonable protections to consumers of the relevant Product.
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new text begin Notwithstanding the foregoing, a Compacting State may, at the time of its enactment
of this Compact, prospectively opt out of all Uniform Standards involving long-term care
insurance products by expressly providing for such opt out in the enacted Compact, and
such an opt out shall not be treated as a material variance in the offer or acceptance of
any State to participate in this Compact. Such an opt out shall be effective at the time
of enactment of this Compact by the Compacting State and shall apply to all existing
Uniform Standards involving long-term care insurance products and those subsequently
promulgated.
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new text begin 5. Effect of Opt Out. If a Compacting State elects to opt out of a Uniform Standard,
the Uniform Standard shall remain applicable in the Compacting State electing to opt out
until such time the opt out legislation is enacted into law or the regulation opting out
becomes effective.
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new text begin 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 Standard has been
made effective in that State, the opt out shall have the same prospective effect as provided
under Article XIV for withdrawals.
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new text begin 6. Stay of Uniform Standard. If a Compacting State has formally initiated the
process of opting out of a Uniform Standard by regulation, and while the regulatory
opt out is pending, the Compacting State may petition the Commission, at least 15 days
before the effective date of the Uniform Standard, to stay the effectiveness of the Uniform
Standard in that State. The Commission may grant a stay if it determines the regulatory
opt out is being pursued in a reasonable manner and there is a likelihood of success. If a
stay is granted or extended by the Commission, the stay or extension thereof may postpone
the effective date by up to 90 days, unless affirmatively extended by the Commission;
provided, a stay may not be permitted to remain in effect for more than one year unless the
Compacting State can show extraordinary circumstances which warrant a continuance of
the stay, including, but not limited to, the existence of a legal challenge which prevents the
Compacting State from opting out. A stay may be terminated by the Commission upon
notice that the rulemaking process has been terminated.
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new text begin 7. Not later than 30 days after a Rule or Operating Procedure is promulgated,
any person may file a petition for judicial review of the Rule or Operating Procedure;
provided, that the filing of such a petition shall not stay or otherwise prevent the Rule or
Operating Procedure from becoming effective unless the court finds that the petitioner
has a substantial likelihood of success. The court shall give deference to the actions of
the Commission consistent with applicable law and shall not find the Rule or Operating
Procedure to be unlawful if the Rule or Operating Procedure represents a reasonable
exercise of the Commission's authority.
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new text begin Article VIII. Commission Records and Enforcement
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new text begin 1. The Commission shall promulgate Rules establishing conditions and procedures
for public inspection and copying of its information and official records, except such
information and records involving the privacy of individuals and insurers' trade secrets.
The Commission may promulgate additional Rules under which it may make available to
federal and state agencies, including law enforcement agencies, records and information
otherwise exempt from disclosure, and may enter into agreements with such agencies to
receive or exchange information or records subject to nondisclosure and confidentiality
provisions.
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new text begin 2. Except as to privileged records, data and information, the laws of any Compacting
State pertaining to confidentiality or nondisclosure shall not relieve any Compacting
State Commissioner of the duty to disclose any relevant records, data or information to
the Commission; provided, that disclosure to the Commission shall not be deemed to
waive or otherwise affect any confidentiality requirement; and further provided, that,
except as otherwise expressly provided in this Act, the Commission shall not be subject
to the Compacting State's laws pertaining to confidentiality and nondisclosure with
respect to records, data and information in its possession. Confidential information
of the Commission shall remain confidential after such information is provided to any
Commissioner.
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new text begin 3. The Commission shall monitor Compacting States for compliance with duly
adopted Bylaws, Rules, including Uniform Standards, and Operating Procedures.
The Commission shall notify any noncomplying Compacting State in writing of
its noncompliance with Commission Bylaws, Rules or Operating Procedures. If a
noncomplying Compacting State fails to remedy its noncompliance within the time
specified in the notice of noncompliance, the Compacting State shall be deemed to be in
default as set forth in Article XIV.
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new text begin 4. 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:
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new text begin a. 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.
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new text begin b. 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.
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new text begin Article IX. Dispute Resolution
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new text begin 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 Compacting States, or between Compacting States and Noncompacting States,
and the Commission shall promulgate an Operating Procedure providing for resolution of
such disputes.
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new text begin Article X. Product Filing and Approval
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new text begin 1. Insurers and Third Party Filers seeking to have a Product approved by the
Commission shall file the Product with, and pay applicable filing fees to, the Commission.
Nothing in this Act shall be construed to restrict or otherwise prevent an insurer from
filing its Product with the insurance department in any State wherein the insurer is licensed
to conduct the business of insurance, and such filing shall be subject to the laws of the
States where filed.
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new text begin 2. The Commission shall establish appropriate filing and review processes and
procedures pursuant to Commission Rules and Operating Procedures. Notwithstanding
any provision herein to the contrary, the Commission shall promulgate Rules to establish
conditions and procedures under which the Commission will provide public access to
Product filing information. In establishing such Rules, the Commission shall consider
the interests of the public in having access to such information, as well as protection of
personal medical and financial information and trade secrets, that may be contained in a
Product filing or supporting information.
new text end

new text begin 3. Any Product approved by the Commission may be sold or otherwise issued in
those Compacting States for which the Insurer is legally authorized to do business.
new text end

new text begin Article XI. Review of Commission Decisions Regarding Filings
new text end

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

new text begin 2. The Commission shall have authority to monitor, review and reconsider Products
and Advertisement subsequent to their filing or approval upon a finding that the product
does not meet the relevant Uniform Standard. Where appropriate, the Commission may
withdraw or modify its approval after proper notice and hearing, subject to the appeal
process in Section 1 above.
new text end

new text begin Article XII. Finance
new text end

new text begin 1. The Commission shall pay or provide for the payment of the reasonable expenses
of its establishment and organization. To fund the cost of its initial operations, the
Commission may accept contributions and other forms of funding from the National
Association of Insurance Commissioners, Compacting States, and other sources.
Contributions and other forms of funding from other sources shall be of such a nature
that the independence of the Commission concerning the performance of its duties shall
not be compromised.
new text end

new text begin 2. 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.
new text end

new text begin 3. The Commission's budget for a fiscal year shall not be approved until it has been
subject to notice and comment as set forth in Article VII of this Compact.
new text end

new text begin 4. The Commission shall be exempt from all taxation in and by the Compacting
states.
new text end

new text begin 5. The Commission shall not pledge the credit of any Compacting State, except by
and with the appropriate legal authority of that Compacting State.
new text end

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

new text begin 7. 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.
new text end

new text begin Article XIII. Compacting States, Effective Date and Amendment
new text end

new text begin 1. Any State is eligible to become a Compacting State.
new text end

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

new text begin 3. 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.
new text end

new text begin Article XIV. Withdrawal, Default and Termination
new text end

new text begin 1. Withdrawal
new text end

new text begin a. Once effective, the Compact shall continue in force and remain binding upon each
and every Compacting State; provided, that a Compacting State may withdraw from the
Compact ("Withdrawing State") by enacting a statute specifically repealing the statute
which enacted the Compact into law.
new text end

new text begin b. The effective date of withdrawal is the effective date of the repealing statute.
However, the withdrawal shall not apply to any product filings approved or self-certified,
or any Advertisement of such products, on the date the repealing statute becomes effective,
except by mutual agreement of the Commission and the Withdrawing State unless the
approval is rescinded by the Withdrawing State as provided in Paragraph e of this section.
new text end

new text begin c. 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.
new text end

new text begin d. The Commission shall notify the other Compacting States of the introduction of
such legislation within ten days after its receipt of notice thereof.
new text end

new text begin e. 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'new text begin s approval of Products and
Advertisement prior to the effective date of withdrawal shall continue to be effective and
be given full force and effect in the Withdrawing State, unless formally rescinded by
the Withdrawing State in the same manner as provided by the laws of the Withdrawing
State for the prospective disapproval of products or advertisement previously approved
under state law.
new text end new text end

new text begin f. Reinstatement following withdrawal of any Compacting State shall occur upon
the effective date of the Withdrawing State reenacting the Compact.
new text end

new text begin 2. Default
new text end

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

new text begin b. Product approvals by the Commission or product self-certifications, or any
Advertisement in connection with such product, that are in force on the effective date of
termination shall remain in force in the Defaulting State in the same manner as if the
Defaulting State had withdrawn voluntarily pursuant to Section 1 of this article.
new text end

new text begin c. Reinstatement following termination of any Compacting State requires a
reenactment of the Compact.
new text end

new text begin 3. Dissolution of Compact
new text end

new text begin a. 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.
new text end

new text begin b. Upon the dissolution of this Compact, the Compact becomes null and void and
shall be of no further force or effect, and the business and affairs of the Commission shall
be wound up and any surplus funds shall be distributed in accordance with the Bylaws.
new text end

new text begin Article XV. Severability and Construction
new text end

new text begin 1. The provisions of this Compact shall be severable; and if any phrase, clause,
sentence, or provision is deemed unenforceable, the remaining provisions of the Compact
shall be enforceable.
new text end

new text begin 2. The provisions of this Compact shall be liberally construed to effectuate its
purposes.
new text end

new text begin Article XVI. Binding Effect of Compact and Other Laws
new text end

new text begin 1. Other Laws
new text end

new text begin a. Nothing herein prevents the enforcement of any other law of a Compacting State,
except as provided in Paragraph b of this section.
new text end

new text begin 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 Commissioner may apply to the content of
the Advertisement. Notwithstanding the foregoing, no action taken by the Commission
shall abrogate or restrict: (i) the access of any person to state courts; (ii) remedies available
under state law related to breach of contract, tort, or other laws not specifically directed
to the content of the Product; (iii) state law relating to the construction of insurance
contracts; or (iv) the authority of the attorney general of the state, including but not limited
to maintaining any actions or proceedings, as authorized by law.
new text end

new text begin c. All insurance products filed with individual States shall be subject to the laws
of those States.
new text end

new text begin 2. Binding Effect of this Compact
new text end

new text begin a. All lawful actions of the Commission, including all Rules and Operating
Procedures promulgated by the Commission, are binding upon the Compacting States.
new text end

new text begin b. All agreements between the Commission and the Compacting States are binding
in accordance with their terms.
new text end

new text begin c. Upon the request of a party to a conflict over the meaning or interpretation of
Commission actions, and upon a majority vote of the Compacting States, the Commission
may issue advisory opinions regarding the meaning or interpretation in dispute.
new text end

new text begin d. In the event any provision of this Compact exceeds the constitutional limits
imposed on the legislature of any Compacting State, the obligations, duties, powers
or jurisdiction sought to be conferred by that provision upon the Commission shall
be ineffective as to that Compacting State, and those obligations, duties, powers, or
jurisdiction shall remain in the Compacting State and shall be exercised by the agency
thereof to which those obligations, duties, powers, or jurisdiction are delegated by law in
effect at the time this Compact becomes effective.
new text end

Sec. 7.

new text begin [61A.66] INTERSTATE INSURANCE PRODUCT REGULATION
COMPACT OPT OUT ADMINISTRATION.
new text end

Sec. 15.

new text begin [62A.3161] MEDICARE SUPPLEMENT PLAN WITH 50 PERCENT
COVERAGE.
new text end

new text begin The Medicare supplement plan with 50 percent coverage must have a level of
coverage that will provide:
new text end

new text begin (1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for
365 days after Medicare benefits end;
new text end

new text begin (2) coverage for 50 percent of the Medicare Part A inpatient hospital deductible
amount per benefit period until the out-of-pocket limitation is met as described in clause
(8);
new text end

new text begin (3) coverage for 50 percent of the coinsurance amount for each day used from the
21st through the 100th day in a Medicare benefit period for posthospital skilled nursing
care eligible under Medicare Part A until the out-of-pocket limitation is met as described
in clause (8);
new text end

new text begin (4) coverage for 50 percent of cost sharing for all Medicare Part A eligible expenses
and respite care until the out-of-pocket limitation is met as described in clause (8);
new text end

new text begin (5) coverage for 50 percent, under Medicare Part A or B, of the reasonable cost
of the first three pints of blood, or equivalent quantities of packed red blood cells, as
defined under federal regulations, unless replaced according to federal regulations, until
the out-of-pocket limitation is met as described in clause (8);
new text end

new text begin (6) except for coverage provided in this clause, coverage for 50 percent of the
cost sharing otherwise applicable under Medicare Part B, after the policyholder pays
the Medicare Part B deductible, until the out-of-pocket limitation is met as described
in clause (8);
new text end

new text begin (7) coverage of 100 percent of the cost sharing for Medicare Part B preventive
services and diagnostic procedures for cancer screening described in section 62A.30 after
the policyholder pays the Medicare Part B deductible; and
new text end

new text begin (8) coverage of 100 percent of all cost sharing under Medicare Parts A and B for the
balance of the calendar year after the individual has reached the out-of-pocket limitation
on annual expenditures under Medicare Parts A and B of $4,000 in 2006, indexed
each year by the appropriate inflation adjustment by the secretary of the United States
Department of Health and Human Services.
new text end

Sec. 16.

new text begin [62A.3162] MEDICARE SUPPLEMENT PLAN WITH 75 PERCENT
COVERAGE.
new text end

new text begin The basic Medicare supplement plan with 75 percent coverage must have a level of
coverage that will provide:
new text end

new text begin (1) 100 percent of Medicare Part A hospitalization coinsurance plus coverage for
365 days after Medicare benefits end;
new text end

new text begin (2) coverage for 75 percent of the Medicare Part A inpatient hospital deductible
amount per benefit period until the out-of-pocket limitation is met as described in clause
(8);
new text end

new text begin (3) coverage for 75 percent of the coinsurance amount for each day used from the
21st through the 100th day in a Medicare benefit period for posthospital skilled nursing
care eligible under Medicare Part A until the out-of-pocket limitation is met as described
in clause (8);
new text end

new text begin (4) coverage for 75 percent of cost sharing for all Medicare Part A eligible expenses
and respite care until the out-of-pocket limitation is met as described in clause (8);
new text end

new text begin (5) coverage for 75 percent, under Medicare Part A or B, of the reasonable cost
of the first three pints of blood, or equivalent quantities of packed red blood cells, as
defined under federal regulations, unless replaced according to federal regulations until
the out-of-pocket limitation is met as described in clause (8);
new text end

new text begin (6) except for coverage provided in this clause, coverage for 75 percent of the
cost sharing otherwise applicable under Medicare Part B after the policyholder pays
the Medicare Part B deductible until the out-of-pocket limitation is met as described
in clause (8);
new text end

new text begin (7) coverage of 100 percent of the cost sharing for Medicare Part B preventive
services and diagnostic procedures for cancer screening described in section 62A.30 after
the policyholder pays the Medicare Part B deductible; and
new text end

new text begin (8) coverage of 100 percent of all cost sharing under Medicare Parts A and B for the
balance of the calendar year after the individual has reached the out-of-pocket limitation
on annual expenditures under Medicare Parts A and B of $2,000 in 2006, indexed
each year by the appropriate inflation adjustment by the Secretary of the United States
Department of Health and Human Services.
new text end

Sec. 26.

new text begin [62Q.80] COMMUNITY-BASED HEALTH CARE COVERAGE
PROGRAM.
new text end

new text begin (b) "Community-based health care coverage program" or "program" means a
program administered by a community-based health initiative that provides health care
services through provider members of a community-based health network or combination
of networks to eligible individuals and their dependents who are enrolled in the program.
new text end

new text begin (c) "Community-based health initiative" means a nonprofit corporation that is
governed by a board that has at least 80 percent of its members residing in the community
and includes representatives of the participating network providers and employers.
new text end

new text begin (d) "Community-based health network" means a contract-based network of health
care providers organized by the community-based health initiative to provide or support
the delivery of health care services to enrollees of the community-based health care
coverage program on a risk-sharing or nonrisk-sharing basis.
new text end

new text begin (e) "Dependent" means an eligible employee's spouse or unmarried child who is
under the age of 19 years.
new text end