Vermont § 8503 - Organization of the Commission

§ 8503. Organization of the Commission

• (a) Membership. 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 the member 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 in this chapter shall be construed to affect the manner in which a
  compacting state determines the election or appointment and qualification of its own
  Commissioner. The Commissioner of the Vermont Department of Financial Regulation,
  or the Commissioner’s designee, shall be the member appointed by Vermont to the Commission. (b) Voting. 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 of this chapter to the contrary, no action of the Commission with respect
  to the adoption of a uniform standard shall be effective unless two-thirds of the
  members vote in favor thereof. (c) Bylaws. (1) 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: (A) establishing the fiscal year of the Commission; (B) providing reasonable procedures for appointing and electing members, as well as holding
  meetings, of the Management Committee; (C) 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; (D) 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 a copy of the vote to close the meeting, revealing the vote of each member
  with no proxy votes allowed, and votes taken during such meeting; (E) establishing the titles, duties, authority, and reasonable procedures for the election
  of the officers of the Commission; (F) 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; (G) adopting a code of ethics to address permissible and prohibited activities of Commission
  members and employees; and (H) 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 reserving of all of its debts and obligations. (2) The Commission shall publish its bylaws in a convenient form and file a copy of its
  bylaws and a copy of any amendment to its bylaws with the appropriate agency or officer
  in each of the compacting states. (d) Management committee. (1) A Management Committee comprising no more than 14 members shall be established as
  follows: (A) 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; (B) four members from those compacting states with at least two percent of the market
  based on the premium volume described in subdivision (1)(A) of this subsection, other
  than the six compacting states with the largest premium volume, selected on a rotating
  basis as provided in the bylaws; and (C) four members from those compacting states with less than two percent of the market,
  based on the premium volume described in subdivision (1)(A) of this subsection, with
  one selected from each of the four zone regions of the NAIC as provided in the bylaws. (2) The Management Committee shall have such authority and duties as may be set forth
  in the bylaws, including: (A) managing the affairs of the Commission in a manner consistent with the bylaws and
  purposes of the Commission; (B) 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; (C) overseeing the offices of the Commission; and (D) planning, implementing, and coordinating communications and activities with other
  state, federal, and local government organizations in order to advance the goals of
  the Commission. (3) The Commission annually shall elect officers from the Management Committee, with each
  having such authority and duties as may be specified in the bylaws. (4) 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. (e) Legislative and advisory committees. 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. (f) Advisory committees. (1) The Commission shall establish two advisory committees, one of which shall comprise
  consumer representatives independent of the insurance industry and the other shall
  comprise insurance industry representatives. (2) The Commission may establish additional advisory committees as its bylaws may provide
  for the carrying out of its functions. (g) Corporate records of the Commission. The Commission shall maintain its corporate books and records in accordance with the
  bylaws. (h) Qualified immunity, defense, and indemnification. (1) 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 subdivision shall be construed to
  protect any such person from suit and liability for any damage, loss, injury, or liability
  caused by the intentional or willful and wanton misconduct of that person. (2) 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 in this
  chapter shall be construed to prohibit that person from retaining the person’s 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. (3) 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. (Added 2005, No. 70, § 2; amended 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2021, No. 105 (Adj. Sess.), § 274, eff. July 1, 2022.)