Ohio § 3915.16

§ 3915.16.

The “Interstate Insurance Product Regulation Compact” is intended to help states join

together to establish an interstate compact to regulate designated insurance products.  Pursuant to terms and conditions of this section, the state of Ohio seeks to join

with other states and establish the interstate insurance product regulation commission,

and thus become a member of the interstate insurance product regulation commission. The “Interstate Insurance Product Regulation Compact” is hereby enacted into law and

entered into with all other states which have legally joined in the compact: “Interstate Insurance Product Regulation Compact” Article I. Purposes The purposes of this Compact are, through means of joint and cooperative action among

the Compacting States: 1. To promote and protect the interest of consumers of individual and group annuity,

life insurance, disability income and long-term care insurance products; 2. To develop uniform standards for insurance products covered under the Compact; 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; 4. To give appropriate regulatory approval to those product filings and advertisements

satisfying the applicable uniform standard; 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; 6. To create the Interstate Insurance Product Regulation Commission;  and 7. To perform these and such other related functions as may be consistent with the

state regulation of the business of insurance. Article II. Definitions For purposes of this Compact: 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. 2. “ Bylaws ” means those bylaws established by the Commission for its governance, or for directing

or controlling the Commission's actions or conduct. 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 “ Compacting State ” means any State which has enacted this Compact legislation and which has not withdrawn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. 4. “ Commission ” means the “Interstate Insurance Product Regulation Commission” established by this

Compact. 5. “ Commissioner ” means the chief insurance regulatory official of a State including, but not limited

to commissioner, superintendent, director or administrator. 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. 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. 8. “ Member ” means the person chosen by a Compacting State as its representative to the Commission,

or his or her designee.  The superintendent of insurance or the superintendent's designee shall serve as

the member to the Commission for the state of Ohio. 9. “ Non-compacting State ” means any State which is not at the time a Compacting State. 10. “ Operating Procedures ” means procedures promulgated by the Commission implementing a Rule, Uniform Standard

or a provision of this Compact. 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. 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. 13. “ State ” means any state, district or territory of the United States of America. 14. “ Third-Party Filer ” means an entity that submits a Product filing to the Commission on behalf of an

Insurer. 15. “ Uniform Standard ” means a standard adopted by the Commission for a Product line, pursuant to Article

VII of the 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. Article III. Establishment of the Commission and Venue 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. 2. The Commission is a body corporate and politic, and an instrumentality of the Compacting

States. 3. The Commission is solely responsible for its liabilities except as otherwise specifically

provided in this Compact. 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. Article IV. Powers of the Commission The Commission shall have the following powers: 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; 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; 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; 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; 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; 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; 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, including, 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 Bylaws, Rules

or Operating Procedures; 17. To enforce compliance by Compacting States with Rules, Uniform Standards, Operating

Procedures and Bylaws; 18. To provide for dispute resolution among Compacting States; 19. To advise Compacting States on issues relating to Insurers domiciled or doing

business in Non-compacting jurisdictions, consistent with the purposes of this Compact; 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; 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 representatives, insurance industry

and consumer representatives, and such other interested persons as may be designated

in the Bylaws; 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 appropriate to achieve

the purposes of this Compact consistent with the state regulation of the business

of insurance. Article V. Organization of the Commission 1. Membership, Voting and Bylaws 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. 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

( 2 / 3 ) of the members vote in favor thereof. 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: i. Establishing the fiscal year of the Commission; ii. Providing reasonable procedures for appointing and electing members, as well as

holding meetings, of the Management Committee; 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; iv. Providing reasonable procedures for calling and conducting meetings of the Commission

that consists of a majority of Commission members, ensuring reasonable advance notice

of each such meeting and providing for the right of citizens to attend each such meeting

with enumerated exceptions designed to protect the public's interest, the privacy

of individuals, and insurers' proprietary information, including trade secrets.  The Commission may meet in camera only after a majority of the entire membership

votes to close a meeting en toto or in part.  As soon as practicable, the Commission must make public (i) a copy of the vote to

close the meeting revealing the vote of each member with no proxy votes allowed, and

(ii) votes taken during such meeting; v. Establishing the titles, duties and authority and reasonable procedures for the

election of the officers of the Commission; 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; vii. Promulgating a code of ethics to address permissible and prohibited activities

of commission members and employees;  and 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. d. The Commission shall publish its bylaws in a convenient form and file a copy thereof

and a copy of any amendments thereto, with the appropriate agency or officer in each

of the Compacting States. 2. Management Committee, Officers and Personnel a. A Management Committee comprising no more than fourteen (14) members shall be established

as follows: i. One (1) member from each of the six (6) 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; ii. Four (4) members from those Compacting States with at least two percent (2%) of

the market based on the premium volume described above, other than the six (6) Compacting

States with the largest premium volume, selected on a rotating basis as provided in

the Bylaws;  and iii. Four (4) members from those Compacting States with less than two percent (2%)

of the market, based on the premium volume described above, with one (1) selected

from each of the four (4) zone regions of the NAIC as provided in the Bylaws. b. The Management Committee shall have such authority and duties as may be set forth

in the Bylaws, including but not limited to: i. Managing the affairs of the Commission in a manner consistent with the Bylaws and

purposes of the Commission; 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 ( 2 / 3 ) of the members of the Management Committee; iii. Overseeing the offices of the Commission;  and 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. 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. 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. 3. Legislative and Advisory Committees 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. b. The Commission shall establish two (2) advisory committees, one of which shall

comprise consumer representatives independent of the insurance industry, and the other

comprising insurance industry representatives. c. The Commission may establish additional advisory committees as its Bylaws may provide

for the carrying out of its functions. 4. Corporate Records of the Commission The Commission shall maintain its corporate books and records in accordance with the

Bylaws. 5. Qualified Immunity, Defense and Indemnification 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 intentional

or willful and wanton misconduct of that person. 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. 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

with 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. Article VI. Meetings and Acts of the Commission 1. The Commission shall meet and take such actions as are consistent with the provisions

of this Compact and Bylaws. 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. 3. The Commission shall meet at least once during each calendar year.  Additional meetings shall be held as set forth in the Bylaws. Article VII. Rules and Operating Procedures:  Rulemaking Functions of the Commission and Opting

Out of Uniform Standards 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. 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. 3. Effective Date and Opt Out of a Uniform Standard. A Uniform Standard shall become effective ninety (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. 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 (10) business days

after the Uniform Standard is promulgated, or at the time the State becomes a Compacting

State and (b) find that the Uniform Standard does not provide reasonable protections

to the citizens of the State, given the conditions in the State.  The Commissioner 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. 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. 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. 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. 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 fifteen (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 ninety (90) days, unless affirmatively extended

by the Commission; provided , a stay may not be permitted to remain in effect for more than one (1) 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. 7. Not later than thirty (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. Article VIII. Commission Records and Enforcement 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. 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. 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 non-complying Compacting State in writing of its

non-compliance with Commission Bylaws, Rules or Operating Procedures.  If a non-complying 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. 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: 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. 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. Article IX. 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 Compacting States, or between Compacting States and Non-compacting States, and

the Commission shall promulgate an Operating Procedure providing for resolution of

such disputes. Article X. Product Filing and Approval 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. 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. 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. Article XI. Review of Commission Decisions Regarding Filings 1. Not later than thirty (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. 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. Article XII. Finance 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. 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. 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. 4. The Commission shall be exempt from all taxation in and by the Compacting States. 5. The Commission shall not pledge the credit of any Compacting State, except by and

with the appropriate legal authority of that Compacting State. 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

(3) 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 the 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. 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. Article XIII. Compacting States, Effective Date and Amendment 1. Any state is eligible to become a Compacting State. 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 twenty-six (26) States are Compacting

States or, alternatively, by States representing greater than forty percent (40%)

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.  Therefore, it shall become effective and binding as to any other Compacting State

upon enactment of the Compact into law by that State. 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. Article XIV. Withdrawal, Default and Termination 1. Withdrawal 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. 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. 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. d. The Commission shall notify the other Compacting States of the introduction of

such legislation within ten (10) days after its receipt of notice thereof. 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'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. f. Reinstatement following withdrawal of any Compacting State shall occur upon the

effective date of the Withdrawing State reenacting the Compact. 2. Default 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 from the Compact and all

rights, privileges and benefits conferred by this Compact shall be terminated from

the effective date of termination. 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. c. Reinstatement following termination of any Compacting State requires a reenactment

of the Compact. 3. Dissolution of Compact 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. 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. Article XV. Severability and Construction 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. 2. The provisions of this Compact shall be liberally construed to effectuate its purposes. Article XVI. Binding Effect of Compact and Other Laws 1. Other Laws a. Nothing herein prevents the enforcement of any other law of a Compacting State,

except as provided in Paragraph 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 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. c. All insurance products filed with individual States shall be subject to the laws

of those States. 2. Binding Effect of this Compact a. All lawful actions of the Commission, including all Rules and Operating Procedures

promulgated by the Commission, are binding upon the Compacting States. b. All agreements between the Commission and the Compacting States are binding in

accordance with their terms. 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. 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.