Sec. 3901.48. (A) The original work papers of a certified | 6 |
public accountant performing an audit of an insurance company
or | 7 |
health insuring corporation doing business in this state that is | 8 |
required by rule or by any
section of the Revised Code to file an | 9 |
audited financial report
with the superintendent of insurance | 10 |
shall remain the property of
the certified public accountant. Any | 11 |
copies of these work papers
voluntarily given to the | 12 |
superintendent shall be the property of
the superintendent. The | 13 |
original work papers or any copies of
them, whether in possession | 14 |
of the certified public accountant or
the department of insurance, | 15 |
are confidential
and privileged and are not a public
record as | 16 |
defined in section 149.43 of the Revised Code.
The original work | 17 |
papers and any copies of them are not
subject to subpoena and | 18 |
shall not be made public by the
superintendent or any other | 19 |
person. | 20 |
(B) The work papers of the superintendent or of the person | 21 |
appointed by the superintendent, resulting from the conduct
of an | 22 |
examination
made pursuant to section 3901.07 of the Revised Code | 23 |
or from the conduct of a financial analysis of any entity subject | 24 |
to examination by the superintendent, including but not limited to | 25 |
any insurance company, health insuring corporation, fraternal | 26 |
benefit society, or multiple employer welfare arrangement, are | 27 |
confidential
and privileged and
are not a public record as defined | 28 |
in section 149.43 of the Revised Code.
The original work papers | 29 |
and any copies of them are not
subject to subpoena and shall not | 30 |
be made public by the
superintendent or any other person. | 31 |
(C) The work papers of the superintendent or of any person | 32 |
appointed by the
superintendent, resulting from the conduct of a | 33 |
performance
regulation examination made pursuant to authority | 34 |
granted under section
3901.011 of the Revised Code or from the | 35 |
conduct of a market analysis or investigation of any entity | 36 |
subject to examination by the superintendent, including, but not | 37 |
limited to, any insurance company, health insuring corporation, | 38 |
fraternal benefit society, or multiple employer welfare | 39 |
arrangement, are
confidential
and privileged and are not a public | 40 |
record as
defined
in section 149.43 of the Revised Code. The | 41 |
original work papers
and
any copies of them are not subject to | 42 |
subpoena and shall not
be made public by the superintendent or any | 43 |
other person. | 44 |
(1) Share work papers that are the subject of this section | 47 |
with the chief deputy rehabilitator, the chief deputy liquidator, | 48 |
other deputy rehabilitators and liquidators, and any other person | 49 |
employed by, or acting on behalf of, the superintendent pursuant | 50 |
to Chapter 3901. or 3903. of the Revised Code, with other local, | 51 |
state, federal, and international regulatory and law enforcement | 52 |
agencies, with local, state, and federal prosecutors, and with the | 53 |
national association of insurance commissioners and its affiliates | 54 |
and subsidiaries, and with the interstate insurance product | 55 |
regulation commission described in section 3915.16 of the Revised | 56 |
Code, provided that the recipient agrees to maintain
the | 57 |
confidential or privileged status of the confidential or | 58 |
privileged work paper and has authority to do so; | 59 |
(E) Notwithstanding divisions (A), (B), (C), and (D) of this | 64 |
section, the superintendent may authorize the national association | 65 |
of insurance commissioners and its affiliates and subsidiaries or | 66 |
the interstate insurance product regulation commission described | 67 |
in section 3915.16 of the Revised Code by
agreement to share | 68 |
confidential or privileged work papers
received
pursuant to | 69 |
division (D)(1) of this section with local,
state,
federal, and | 70 |
international regulatory and law enforcement
agencies
and with | 71 |
local, state, and federal prosecutors, provided
that the
recipient | 72 |
agrees to maintain the confidential or
privileged status
of the | 73 |
confidential or privileged work paper and
has authority to
do so. | 74 |
(F) Notwithstanding divisions (A), (B), (C), and (D) of this | 75 |
section, the chief deputy rehabilitator, the chief deputy | 76 |
liquidator, and other deputy rehabilitators and liquidators may | 77 |
disclose work papers that are the subject of this section in the | 78 |
furtherance of any regulatory or legal action brought by or on | 79 |
behalf of the superintendent, the rehabilitator, the liquidator, | 80 |
or the state resulting from the
exercise of the superintendent's | 81 |
official duties in any capacity. | 82 |
Sec. 3915.16. The "Interstate Insurance Product Regulation | 101 |
Compact" is intended to help states join together to establish an | 102 |
interstate compact to regulate designated insurance products. | 103 |
Pursuant to terms and conditions of this section, the state of | 104 |
Ohio seeks to join with other states and establish the interstate | 105 |
insurance product regulation commission, and thus become a member | 106 |
of the interstate insurance product regulation commission. | 107 |
1. "Advertisement" means any material designed to create | 139 |
public interest in a Product, or induce the public to purchase, | 140 |
increase, modify, reinstate, borrow on, surrender, replace or | 141 |
retain a policy, as more specifically defined in the Rules and | 142 |
Operating Procedures of the Commission. | 143 |
11. "Product" means the form of a policy or contract, | 171 |
including any application, endorsement, or related form which is | 172 |
attached to and made a part of the policy or contract, and any | 173 |
evidence of coverage or certificate, for an individual or group | 174 |
annuity, life insurance, disability income or long-term care | 175 |
insurance product that an Insurer is authorized to issue. | 176 |
12. "Rule" means a statement of general or particular | 177 |
applicability and future effect promulgated by the Commission, | 178 |
including a Uniform Standard developed pursuant to Article VII of | 179 |
this Compact, designed to implement, interpret, or prescribe law | 180 |
or policy or describing the organization, procedure, or practice | 181 |
requirements of the Commission, which shall have the force and | 182 |
effect of law in the Compacting States. | 183 |
15. "Uniform Standard" means a standard adopted by the | 188 |
Commission for a Product line, pursuant to Article VII of the | 189 |
Compact, and shall include all of the Product requirements in | 190 |
aggregate; provided, that each Uniform Standard shall be | 191 |
construed, whether express or implied, to prohibit the use of any | 192 |
inconsistent, misleading or ambiguous provisions in a Product and | 193 |
the form of the Product made available to the public shall not be | 194 |
unfair, inequitable, or against public policy as determined by the | 195 |
Commission. | 196 |
1. The Compacting States hereby create and establish a joint | 198 |
public agency known as the "Interstate Insurance Product | 199 |
Regulation Commission." Pursuant to Article IV, the Commission | 200 |
will have the power to develop Uniform Standards for Product | 201 |
lines, receive and provide prompt review of Products filed | 202 |
therewith, and give approval to those Product filings satisfying | 203 |
applicable Uniform Standards; provided, it is not intended for the | 204 |
Commission to be the exclusive entity for receipt and review of | 205 |
insurance product filings. Nothing herein shall prohibit any | 206 |
Insurer from filing its product in any State wherein the Insurer | 207 |
is licensed to conduct the business of insurance; and any such | 208 |
filing shall be subject to the laws of the State where filed. | 209 |
2. To exercise its rule-making authority and establish | 224 |
reasonable Uniform Standards for Products covered under the | 225 |
Compact, and Advertisement related thereto, which shall have the | 226 |
force and effect of law and shall be binding in the Compacting | 227 |
States, but only for those Products filed with the Commission, | 228 |
provided, that a Compacting State shall have the right to opt out | 229 |
of such Uniform Standard pursuant to Article VII, to the extent | 230 |
and in the manner provided in this Compact, and, providedfurther, | 231 |
that any Uniform Standard established by the Commission for | 232 |
long-term care insurance products may provide the same or greater | 233 |
protections for consumers as, but shall not provide less than, | 234 |
those protections set forth in the National Association of | 235 |
Insurance Commissioners' Long-term Care Insurance Model Act and | 236 |
Long-Term Care Insurance Model Regulation, respectively, adopted | 237 |
as of 2001. The Commission shall consider whether any subsequent | 238 |
amendments to the NAIC Long-Term Care Insurance Model Act or | 239 |
Long-Term Care Insurance Model Regulation adopted by the NAIC | 240 |
require amending of the Uniform Standards established by the | 241 |
Commission for long-term care insurance products; | 242 |
3. To receive and review in an expeditious manner Products | 243 |
filed with the Commission, and rate filings for disability income | 244 |
and long-term care insurance Products, and give approval of those | 245 |
Products and rate filings that satisfy the applicable Uniform | 246 |
Standard, where such approval shall have the force and effect of | 247 |
law and be binding on the Compacting States to the extent and in | 248 |
the manner provided in the Compact; | 249 |
4. To receive and review in an expeditious manner | 250 |
Advertisement relating to long-term care insurance products for | 251 |
which Uniform Standards have been adopted by the Commission and | 252 |
give approval to all Advertisement that satisfies the applicable | 253 |
Uniform Standard. For any product covered under this Compact, | 254 |
other than long-term care insurance products, the Commission shall | 255 |
have the authority to require an insurer to submit all or any part | 256 |
of its Advertisement with respect to that product for review or | 257 |
approval prior to use, if the Commission determines that the | 258 |
nature of the product is such that an Advertisement of the product | 259 |
could have the capacity or tendency to mislead the public. The | 260 |
actions of the Commission as provided in this section shall have | 261 |
the force and effect of law and shall be binding in the Compacting | 262 |
States to the extent and in the manner provided in the Compact; | 263 |
12. To hire employees, professionals or specialists, and | 281 |
elect or appoint officers, and to fix their compensation, define | 282 |
their duties and give them appropriate authority to carry out the | 283 |
purposes of the Compact, and determine their qualifications; and | 284 |
to establish the Commission's personnel policies and programs | 285 |
relating to, among other things, conflicts of interest, rates of | 286 |
compensation and qualifications of personnel; | 287 |
a. Each Compacting State shall have and be limited to one | 327 |
member. Each member shall be qualified to serve in that capacity | 328 |
pursuant to applicable law of the Compacting State. Any member may | 329 |
be removed or suspended from office as provided by the law of the | 330 |
State from which he or she shall be appointed. Any vacancy | 331 |
occurring in the Commission shall be filled in accordance with the | 332 |
laws of the Compacting State wherein the vacancy exists. Nothing | 333 |
herein shall be construed to affect the manner in which a | 334 |
Compacting State determines the election or appointment and | 335 |
qualification of its own Commissioner. | 336 |
iv. Providing reasonable procedures for calling and | 355 |
conducting meetings of the Commission that consists of a majority | 356 |
of Commission members, ensuring reasonable advance notice of each | 357 |
such meeting and providing for the right of citizens to attend | 358 |
each such meeting with enumerated exceptions designed to protect | 359 |
the public's interest, the privacy of individuals, and insurers' | 360 |
proprietary information, including trade secrets. The Commission | 361 |
may meet in camera only after a majority of the entire membership | 362 |
votes to close a meeting en toto or in part. As soon as | 363 |
practicable, the Commission must make public (i) a copy of the | 364 |
vote to close the meeting revealing the vote of each member with | 365 |
no proxy votes allowed, and (ii) votes taken during such meeting; | 366 |
ii. Establishing and overseeing an organizational structure | 407 |
within, and appropriate procedures for, the Commission to provide | 408 |
for the creation of Uniform Standards and other Rules, receipt and | 409 |
review of product filings, administrative and technical support | 410 |
functions, review of decisions regarding the disapproval of a | 411 |
product filing, and the review of elections made by a Compacting | 412 |
State to opt out of a Uniform Standard; provided that a Uniform | 413 |
Standard shall not be submitted to the Compacting States for | 414 |
adoption unless approved by two-thirds (2/3) of the members of the | 415 |
Management Committee; | 416 |
d. The Management Committee may, subject to the approval of | 424 |
the Commission, appoint or retain an executive director for such | 425 |
period, upon such terms and conditions and for such compensation | 426 |
as the Commission may deem appropriate. The executive director | 427 |
shall serve as secretary to the Commission, but shall not be a | 428 |
member of the Commission. The executive director shall hire and | 429 |
supervise such other staff as may be authorized by the Commission. | 430 |
a. A legislative committee comprising state legislators or | 432 |
their designees shall be established to monitor the operations of, | 433 |
and make recommendations to, the Commission, including the | 434 |
Management Committee; provided that the manner of selection and | 435 |
term of any legislative committee member shall be as set forth in | 436 |
the Bylaws. Prior to the adoption by the Commission of any Uniform | 437 |
Standard revision to the Bylaws, annual budget or other | 438 |
significant matter as may be provided in the Bylaws, the | 439 |
Management Committee shall consult with and report to the | 440 |
legislative committee. | 441 |
a. The members, officers, executive director, employees and | 453 |
representatives of the Commission shall be immune from suit and | 454 |
liability, either personally or in their official capacity, for | 455 |
any claim for damage to or loss of property or personal injury or | 456 |
other civil liability caused by or arising out of any actual or | 457 |
alleged act, error or omission that occurred, or that the person | 458 |
against whom the claim is made had a reasonable basis for | 459 |
believing occurred within the scope of Commission employment, | 460 |
duties or responsibilities; provided, that nothing in this | 461 |
paragraph shall be construed to protect any such person from suit | 462 |
and/or liability for any damage, loss, injury or liability caused | 463 |
by intentional or willful and wanton misconduct of that person. | 464 |
b. The Commission shall defend any member, officer, executive | 465 |
director, employee or representative of the Commission in any | 466 |
civil action seeking to impose liability arising out of any actual | 467 |
or alleged act, error or omission that occurred within the scope | 468 |
of Commission employment, duties or responsibilities, or that the | 469 |
person against whom the claim is made had a reasonable basis for | 470 |
believing occurred within the scope of Commission employment, | 471 |
duties or responsibilities; provided, that nothing herein shall be | 472 |
construed to prohibit that person from retaining his or her own | 473 |
counsel; and provided further, that the actual or alleged act, | 474 |
error or omission did not result from that person's intentional or | 475 |
willful and wanton misconduct. | 476 |
c. The Commission shall indemnify and hold harmless any | 477 |
member, officer, executive director, employee or representative of | 478 |
the Commission for the amount of any settlement or judgment | 479 |
obtained against that person arising out of any actual or alleged | 480 |
act, error or omission that occurred within the scope of | 481 |
Commission employment, duties or responsibilities, or that such | 482 |
person had a reasonable basis for believing occurred with the | 483 |
scope of Commission employment, duties or responsibilities, | 484 |
provided, that the actual or alleged act, error or omission did | 485 |
not result from the intentional or willful and wanton misconduct | 486 |
of that person. | 487 |
1. Rulemaking Authority. The Commission shall promulgate | 502 |
reasonable Rules, including Uniform Standards, and Operating | 503 |
Procedures in order to effectively and efficiently achieve the | 504 |
purposes of this Compact. Notwithstanding the foregoing, in the | 505 |
event the Commission exercises its rulemaking authority in a | 506 |
manner that is beyond the scope of the purposes of this Act, or | 507 |
the powers granted hereunder, then such an action by the | 508 |
Commission shall be invalid and have no force and effect. | 509 |
2. Rulemaking Procedure. Rules and Operating Procedures shall | 510 |
be made pursuant to a rulemaking process that conforms to the | 511 |
Model State Administrative Procedure Act of 1981 as amended, as | 512 |
may be appropriate to the operations of the Commission. Before the | 513 |
Commission adopts a Uniform Standard, the Commission shall give | 514 |
written notice to the relevant state legislative committee(s) in | 515 |
each Compacting State responsible for insurance issues of its | 516 |
intention to adopt the Uniform Standard. The Commission in | 517 |
adopting a Uniform Standard shall consider fully all submitted | 518 |
materials and issue a concise explanation of its decision. | 519 |
3. Effective Date and Opt Out of a Uniform Standard. A | 520 |
Uniform Standard shall become effective ninety (90) days after its | 521 |
promulgation by the Commission or such later date as the | 522 |
Commission may determine; provided, however, that a Compacting | 523 |
State may opt out of a Uniform Standard as provided in this | 524 |
Article. "Opt out" shall be defined as any action by a Compacting | 525 |
State to decline to adopt or participate in a promulgated Uniform | 526 |
Standard. All other Rules and Operating Procedures, and amendments | 527 |
thereto, shall become effective as of the date specified in each | 528 |
Rule, Operating Procedure or amendment. | 529 |
4. Opt Out Procedure. A Compacting State may opt out of a | 530 |
Uniform Standard, either by legislation or regulation duly | 531 |
promulgated by the Insurance Department under the Compacting | 532 |
State's Administrative Procedure Act. If a Compacting State elects | 533 |
to opt out of a Uniform Standard by regulation, it must (a) give | 534 |
written notice to the Commission no later than ten (10) business | 535 |
days after the Uniform Standard is promulgated, or at the time the | 536 |
State becomes a Compacting State and (b) find that the Uniform | 537 |
Standard does not provide reasonable protections to the citizens | 538 |
of the State, given the conditions in the State. The Commissioner | 539 |
shall make specific findings of fact and conclusions of law, based | 540 |
on a preponderance of the evidence, detailing the conditions in | 541 |
the State which warrant a departure from the Uniform Standard and | 542 |
determining that the Uniform Standard would not reasonably protect | 543 |
the citizens of the State. The Commissioner must consider and | 544 |
balance the following factors and find that the conditions in the | 545 |
State and needs of the citizens of the State outweigh: (i) the | 546 |
intent of the legislature to participate in, and the benefits of, | 547 |
an interstate agreement to establish national uniform consumer | 548 |
protections for the Products subject to this Act; and (ii) the | 549 |
presumption that a Uniform Standard adopted by the Commission | 550 |
provides reasonable protections to consumers of the relevant | 551 |
Product. | 552 |
Notwithstanding the foregoing, a Compacting State may, at the | 553 |
time of its enactment of this Compact, prospectively opt out of | 554 |
all Uniform Standards involving long-term care insurance products | 555 |
by expressly providing for such opt out in the enacted Compact, | 556 |
and such an opt out shall not be treated as a material variance in | 557 |
the offer or acceptance of any State to participate in this | 558 |
Compact. Such an opt out shall be effective at the time of | 559 |
enactment of this Compact by the Compacting State and shall apply | 560 |
to all existing Uniform Standards involving long-term care | 561 |
insurance products and those subsequently promulgated. | 562 |
Once the opt out of a Uniform Standard by a Compacting State | 568 |
becomes effective as provided under the laws of that State, the | 569 |
Uniform Standard shall have no further force and effect in that | 570 |
State unless and until the legislation or regulation implementing | 571 |
the opt out is repealed or otherwise becomes ineffective under the | 572 |
laws of the State. If a Compacting State opts out of a Uniform | 573 |
Standard after the Uniform Standard has been made effective in | 574 |
that State, the opt out shall have the same prospective effect as | 575 |
provided under Article XIV for withdrawals. | 576 |
6. Stay of Uniform Standard. If a Compacting State has | 577 |
formally initiated the process of opting out of a Uniform Standard | 578 |
by regulation, and while the regulatory opt out is pending, the | 579 |
Compacting State may petition the Commission, at least fifteen | 580 |
(15) days before the effective date of the Uniform Standard, to | 581 |
stay the effectiveness of the Uniform Standard in that State. The | 582 |
Commission may grant a stay if it determines the regulatory opt | 583 |
out is being pursued in a reasonable manner and there is a | 584 |
likelihood of success. If a stay is granted or extended by the | 585 |
Commission, the stay or extension thereof may postpone the | 586 |
effective date by up to ninety (90) days, unless affirmatively | 587 |
extended by the Commission; provided, a stay may not be permitted | 588 |
to remain in effect for more than one (1) year unless the | 589 |
Compacting State can show extraordinary circumstances which | 590 |
warrant a continuance of the stay, including, but not limited to, | 591 |
the existence of a legal challenge which prevents the Compacting | 592 |
State from opting out. A stay may be terminated by the Commission | 593 |
upon notice that the rulemaking process has been terminated. | 594 |
7. Not later than thirty (30) days after a Rule or Operating | 595 |
Procedure is promulgated, any person may file a petition for | 596 |
judicial review of the Rule or Operating Procedure; provided, that | 597 |
the filing of such a petition shall not stay or otherwise prevent | 598 |
the Rule or Operating Procedure from becoming effective unless the | 599 |
court finds that the petitioner has a substantial likelihood of | 600 |
success. The court shall give deference to the actions of the | 601 |
Commission consistent with applicable law and shall not find the | 602 |
Rule or Operating Procedure to be unlawful if the Rule or | 603 |
Operating Procedure represents a reasonable exercise of the | 604 |
Commission's authority. | 605 |
1. The Commission shall promulgate Rules establishing | 607 |
conditions and procedures for public inspection and copying of its | 608 |
information and official records, except such information and | 609 |
records involving the privacy of individuals and insurers' trade | 610 |
secrets. The Commission may promulgate additional Rules under | 611 |
which it may make available to federal and state agencies, | 612 |
including law enforcement agencies, records and information | 613 |
otherwise exempt from disclosure, and may enter into agreements | 614 |
with such agencies to receive or exchange information or records | 615 |
subject to nondisclosure and confidentiality provisions. | 616 |
2. Except as to privileged records, data and information, the | 617 |
laws of any Compacting State pertaining to confidentiality or | 618 |
nondisclosure shall not relieve any Compacting State Commissioner | 619 |
of the duty to disclose any relevant records, data or information | 620 |
to the Commission; provided, that disclosure to the Commission | 621 |
shall not be deemed to waive or otherwise affect any | 622 |
confidentiality requirement; and further provided, that, except as | 623 |
otherwise expressly provided in this Act, the Commission shall not | 624 |
be subject to the Compacting State's laws pertaining to | 625 |
confidentiality and nondisclosure with respect to records, data | 626 |
and information in its possession. Confidential information of the | 627 |
Commission shall remain confidential after such information is | 628 |
provided to any Commissioner. | 629 |
3. The Commission shall monitor Compacting States for | 630 |
compliance with duly adopted Bylaws, Rules, including Uniform | 631 |
Standards, and Operating Procedures. The Commission shall notify | 632 |
any non-complying Compacting State in writing of its | 633 |
non-compliance with Commission Bylaws, Rules or Operating | 634 |
Procedures. If a non-complying Compacting State fails to remedy | 635 |
its noncompliance within the time specified in the notice of | 636 |
noncompliance, the Compacting State shall be deemed to be in | 637 |
default as set forth in Article XIV. | 638 |
a. With respect to the Commissioner's market regulation of a | 646 |
Product or Advertisement that is approved or certified to the | 647 |
Commission, the content of the Product or Advertisement shall not | 648 |
constitute a violation of the provisions, standards or | 649 |
requirements of the Compact except upon a final order of the | 650 |
Commission, issued at the request of a Commissioner after prior | 651 |
notice to the Insurer and an opportunity for hearing before the | 652 |
Commission. | 653 |
b. Before a Commissioner may bring an action for violation of | 654 |
any provision, standard or requirement of the Compact relating to | 655 |
the content of an Advertisement not approved or certified to the | 656 |
Commission, the Commission, or an authorized Commission officer or | 657 |
employee, must authorize the action. However, authorization | 658 |
pursuant to this paragraph does not require notice to the Insurer, | 659 |
opportunity for hearing or disclosure of requests for | 660 |
authorization or records of the Commission's action on such | 661 |
requests. | 662 |
1. Insurers and Third-Party Filers seeking to have a Product | 671 |
approved by the Commission shall file the Product with, and pay | 672 |
applicable filing fees to, the Commission. Nothing in this Act | 673 |
shall be construed to restrict or otherwise prevent an insurer | 674 |
from filing its Product with the insurance department in any State | 675 |
wherein the insurer is licensed to conduct the business of | 676 |
insurance, and such filing shall be subject to the laws of the | 677 |
States where filed. | 678 |
2. The Commission shall establish appropriate filing and | 679 |
review processes and procedures pursuant to Commission Rules and | 680 |
Operating Procedures. Notwithstanding any provision herein to the | 681 |
contrary, the Commission shall promulgate Rules to establish | 682 |
conditions and procedures under which the Commission will provide | 683 |
public access to Product filing information. In establishing such | 684 |
Rules, the Commission shall consider the interests of the public | 685 |
in having access to such information, as well as protection of | 686 |
personal medical and financial information and trade secrets, that | 687 |
may be contained in a Product filing or supporting information. | 688 |
1. Not later than thirty (30) days after the Commission has | 693 |
given notice of a disapproved Product or Advertisement filed with | 694 |
the Commission, the Insurer or Third Party Filer whose filing was | 695 |
disapproved may appeal the determination to a review panel | 696 |
appointed by the Commission. The Commission shall promulgate Rules | 697 |
to establish procedures for appointing such review panels and | 698 |
provide for notice and hearing. An allegation that the Commission, | 699 |
in disapproving a Product or Advertisement filed with the | 700 |
Commission, acted arbitrarily, capriciously, or in a manner that | 701 |
is an abuse of discretion or otherwise not in accordance with the | 702 |
law, is subject to judicial review in accordance with Article III, | 703 |
Section 4. | 704 |
1. The Commission shall pay or provide for the payment of the | 712 |
reasonable expenses of its establishment and organization. To fund | 713 |
the cost of its initial operations, the Commission may accept | 714 |
contributions and other forms of funding from the National | 715 |
Association of Insurance Commissioners, Compacting States and | 716 |
other sources. Contributions and other forms of funding from other | 717 |
sources shall be of such a nature that the independence of the | 718 |
Commission concerning the performance of its duties shall not be | 719 |
compromised. | 720 |
6. The Commission shall keep complete and accurate accounts | 734 |
of all its internal receipts, including grants and donations, and | 735 |
disbursements of all funds under its control. The internal | 736 |
financial accounts of the Commission shall be subject to the | 737 |
accounting procedures established under its Bylaws. The financial | 738 |
accounts and reports including the system of internal controls and | 739 |
procedures of the Commission shall be audited annually by an | 740 |
independent certified public accountant. Upon the determination of | 741 |
the Commission, but no less frequently than every three (3) years, | 742 |
the review of the independent auditor shall include a management | 743 |
and performance audit of the Commission. The Commission shall make | 744 |
an Annual Report to the Governor and the legislature of the | 745 |
Compacting States, which shall include a report of the independent | 746 |
audit. The Commission's internal accounts shall not be | 747 |
confidential and such materials may be shared with the | 748 |
Commissioner of any Compacting State upon request provided, | 749 |
however, that any work papers related to any internal or | 750 |
independent audit and any information regarding the privacy of | 751 |
individuals and insurers' proprietary information, including trade | 752 |
secrets, shall remain confidential. | 753 |
2. The Compact shall become effective and binding upon | 759 |
legislative enactment of the Compact into law by two Compacting | 760 |
States; provided, the Commission shall become effective for | 761 |
purposes of adopting Uniform Standards for, reviewing, and giving | 762 |
approval or disapproval of, Products filed with the Commission | 763 |
that satisfy applicable Uniform Standards only after twenty-six | 764 |
(26) States are Compacting States or, alternatively, by States | 765 |
representing greater than forty percent (40%) of the premium | 766 |
volume for life insurance, annuity, disability income and | 767 |
long-term care insurance products, based on records of the NAIC | 768 |
for the prior year. Therefore, it shall become effective and | 769 |
binding as to any other Compacting State upon enactment of the | 770 |
Compact into law by that State. | 771 |
b. The effective date of withdrawal is the effective date of | 784 |
the repealing statute. However, the withdrawal shall not apply to | 785 |
any product filings approved or self-certified, or any | 786 |
Advertisement of such products, on the date the repealing statute | 787 |
becomes effective, except by mutual agreement of the Commission | 788 |
and the Withdrawing State unless the approval is rescinded by the | 789 |
Withdrawing State as provided in Paragraph e of this section. | 790 |
e. The Withdrawing State is responsible for all obligations, | 798 |
duties and liabilities incurred through the effective date of | 799 |
withdrawal, including any obligations, the performance of which | 800 |
extend beyond the effective date of withdrawal, except to the | 801 |
extent those obligations may have been released or relinquished by | 802 |
mutual agreement of the Commission and the Withdrawing State. The | 803 |
Commission's approval of Products and Advertisement prior to the | 804 |
effective date of withdrawal shall continue to be effective and be | 805 |
given full force and effect in the Withdrawing State, unless | 806 |
formally rescinded by the Withdrawing State in the same manner as | 807 |
provided by the laws of the Withdrawing State for the prospective | 808 |
disapproval of products or advertisement previously approved under | 809 |
state law. | 810 |
a. If the Commission determines that any Compacting State has | 815 |
at any time defaulted ("Defaulting State") in the performance of | 816 |
any of its obligations or responsibilities under this Compact, the | 817 |
Bylaws or duly promulgated Rules or Operating Procedures, then, | 818 |
after notice and hearing as set forth in the Bylaws, all rights, | 819 |
privileges and benefits conferred by this Compact on the | 820 |
Defaulting State shall be suspended from the effective date of | 821 |
default as fixed by the Commission. The grounds for default | 822 |
include, but are not limited to, failure of a Compacting State to | 823 |
perform its obligations or responsibilities, and any other grounds | 824 |
designated in Commission Rules. The Commission shall immediately | 825 |
notify the Defaulting State in writing of the Defaulting State's | 826 |
suspension pending a cure of the default. The Commission shall | 827 |
stipulate the conditions and the time period within which the | 828 |
Defaulting State must cure its default. If the Defaulting State | 829 |
fails to cure the default within the time period specified by the | 830 |
Commission, the Defaulting State shall be terminated from the | 831 |
Compact and all rights, privileges and benefits conferred by this | 832 |
Compact shall be terminated from the effective date of | 833 |
termination. | 834 |
b. For any Product approved or certified to the Commission, | 862 |
the Rules, Uniform Standards and any other requirements of the | 863 |
Commission shall constitute the exclusive provisions applicable to | 864 |
the content, approval and certification of such Products. For | 865 |
Advertisement that is subject to the Commission's authority, any | 866 |
Rule, Uniform Standard or other requirement of the Commission | 867 |
which governs the content of the Advertisement shall constitute | 868 |
the exclusive provision that a Commissioner may apply to the | 869 |
content of the Advertisement. Notwithstanding the foregoing, no | 870 |
action taken by the Commission shall abrogate or restrict: (i) the | 871 |
access of any person to state courts; (ii) remedies available | 872 |
under state law related to breach of contract, tort, or other laws | 873 |
not specifically directed to the content of the Product; (iii) | 874 |
state law relating to the construction of insurance contracts; or | 875 |
(iv) the authority of the attorney general of the state, including | 876 |
but not limited to maintaining any actions or proceedings, as | 877 |
authorized by law. | 878 |
d. In the event any provision of this Compact exceeds the | 891 |
constitutional limits imposed on the legislature of any Compacting | 892 |
State, the obligations, duties, powers or jurisdiction sought to | 893 |
be conferred by that provision upon the Commission shall be | 894 |
ineffective as to that Compacting State, and those obligations, | 895 |
duties, powers or jurisdiction shall remain in the Compacting | 896 |
State and shall be exercised by the agency thereof to which those | 897 |
obligations, duties, powers or jurisdiction are delegated by law | 898 |
in effect at the time this Compact becomes effective. | 899 |