1.1 	A bill for an act
1.2 	relating to insurance; enacting the Interstate Insurance Product Regulation 
1.3 	Compact; designating the commissioner of commerce as the state's representative 
1.4 	to the Interstate Insurance Product Regulation Commission;proposing coding 
1.5 	for new law in Minnesota Statutes, chapter 60A.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [60A.99] INTERSTATE INSURANCE PRODUCT REGULATION 
1.8 	COMPACT.
1.9 		Subdivision 1.Enactment and form. The Interstate Insurance Product Regulation 
1.10 	Compact is enacted into law and entered into with all other states legally joining in it is 
1.11 	substantially the following form:
1.12 	Article I. Purposes
1.13 	The purposes of this Compact are, through means of joint and cooperative action 
1.14 	among the Compacting States:
1.15 	1. To promote and protect the interest of consumers of individual and group annuity, 
1.16 	life insurance, disability income and long-term care insurance products;
1.17 	2. To develop uniform standards for insurance products covered under the Compact;
1.18 	3. To establish a central clearinghouse to receive and provide prompt review of 
1.19 	insurance products covered under the Compact and, in certain cases, advertisements related 
1.20 	thereto, submitted by insurers authorized to do business in one or more Compacting States;
1.21 	4. To give appropriate regulatory approval to those product filings and 
1.22 	advertisements satisfying the applicable uniform standard;
1.23 	5. To improve coordination of regulatory resources and expertise between state 
1.24 	insurance departments regarding the setting of uniform standards and review of insurance 
1.25 	products covered under the Compact;
2.1 	6. To create the Interstate Insurance Product Regulation Commission; and
2.2 	7. To perform these and such other related functions as may be consistent with the 
2.3 	state regulation of the business of insurance.
2.4 	Article II. Definitions
2.5 	For purposes of this Compact:
2.6 	1. "Advertisement" means any material designed to create public interest in 
2.7 	a Product, or induce the public to purchase, increase, modify, reinstate, borrow on, 
2.8 	surrender, replace or retain a policy, as more specifically defined in the Rules and 
2.9 	Operating Procedures of the Commission.
2.10 	2. "Bylaws" mean those bylaws established by the Commission for its governance, 
2.11 	or for directing or controlling the Commission's actions or conduct.
2.12 	3. "Compacting State" means any State which has enacted this Compact legislation 
2.13 	and which has not withdrawn pursuant to Article XIV, Section 1, or been terminated 
2.14 	pursuant to Article XIV, Section 2.
2.15 	4. "Commission" means the "Interstate Insurance Product Regulation Commission" 
2.16 	established by this Compact.
2.17 	5. "Commissioner" means the chief insurance regulatory official of a State including, 
2.18 	but not limited to commissioner, superintendent, director or administrator.
2.19 	6. "Domiciliary State" means the state in which an Insurer is incorporated or 
2.20 	organized; or, in the case of an alien Insurer, its state of entry.
2.21 	7. "Insurer" means any entity licensed by a State to issue contracts of insurance for 
2.22 	any of the lines of insurance covered by this Act.
2.23 	8. "Member" means the person chosen by a Compacting State as its representative 
2.24 	to the Commission, or his or her designee.
2.25 	9. "Noncompacting State" means any State which is not at the time a Compacting 
2.26 	State.
2.27 	10. "Operating Procedures" mean procedures promulgated by the Commission 
2.28 	implementing a Rule, Uniform Standard, or a provision of this Compact.
2.29 	11. "Product" means the form of a policy or contract, including any application, 
2.30 	endorsement, or related form which is attached to and made a part of the policy or 
2.31 	contract, and any evidence of coverage or certificate, for an individual or group annuity, 
2.32 	life insurance, disability income or long-term care insurance product that an Insurer is 
2.33 	authorized to issue.
2.34 	12. "Rule" means a statement of general or particular applicability and future effect 
2.35 	promulgated by the Commission, including a Uniform Standard developed pursuant to 
2.36 	Article VII of this Compact, designed to implement, interpret, or prescribe law or policy 
3.1 	or describing the organization, procedure, or practice requirements of the Commission, 
3.2 	which shall have the force and effect of law in the Compacting States.
3.3 	13. "State" means any state, district, or territory of the United States of America.
3.4 	14. "Third Party Filer" means an entity that submits a Product filing to the 
3.5 	Commission on behalf of an Insurer.
3.6 	15. "Uniform Standard" means a standard adopted by the Commission for a 
3.7 	Product line, pursuant to Article VII of this Compact, and shall include all of the Product 
3.8 	requirements in aggregate; provided, that each Uniform Standard shall be construed, 
3.9 	whether express or implied, to prohibit the use of any inconsistent, misleading or 
3.10 	ambiguous provisions in a Product and the form of the Product made available to the public 
3.11 	shall not be unfair, inequitable or against public policy as determined by the Commission.
3.12 	Article III. Establishment of the Commission and Venue
3.13 	1. The Compacting States hereby create and establish a joint public agency known 
3.14 	as the "Interstate Insurance Product Regulation Commission." Pursuant to Article IV, 
3.15 	the Commission will have the power to develop Uniform Standards for Product lines, 
3.16 	receive and provide prompt review of Products filed therewith, and give approval to those 
3.17 	Product filings satisfying applicable Uniform Standards; provided, it is not intended for 
3.18 	the Commission to be the exclusive entity for receipt and review of insurance product 
3.19 	filings. Nothing herein shall prohibit any Insurer from filing its product in any State 
3.20 	wherein the Insurer is licensed to conduct the business of insurance; and any such filing 
3.21 	shall be subject to the laws of the State where filed.
3.22 	2. The Commission is a body corporate and politic, and an instrumentality of the 
3.23 	Compacting States.
3.24 	3. The Commission is solely responsible for its liabilities except as otherwise 
3.25 	specifically provided in this Compact.
3.26 	4. Venue is proper and judicial proceedings by or against the Commission shall be 
3.27 	brought solely and exclusively in a Court of competent jurisdiction where the principal 
3.28 	office of the Commission is located.
3.29 	Article IV. Powers of the Commission
3.30 	The Commission shall have the following powers:
3.31 	1. To promulgate Rules, pursuant to Article VII of this Compact, which shall have 
3.32 	the force and effect of law and shall be binding in the Compacting States to the extent and 
3.33 	in the manner provided in this Compact;
3.34 	2. To exercise its rule-making authority and establish reasonable Uniform Standards 
3.35 	for Products covered under the Compact, and Advertisement related thereto, which 
3.36 	shall have the force and effect of law and shall be binding in the Compacting States, 
4.1 	but only for those Products filed with the Commission, provided, that a Compacting 
4.2 	State shall have the right to opt out of such Uniform Standard pursuant to Article VII, to 
4.3 	the extent and in the manner provided in this Compact, and, provided further, that any 
4.4 	Uniform Standard established by the Commission for long-term care insurance products 
4.5 	may provide the same or greater protections for consumers as, but shall not provide less 
4.6 	than, those protections set forth in the National Association of Insurance Commissioners' 
4.7 	Long-Term Care Insurance Model Act and Long-Term Care Insurance Model Regulation, 
4.8 	respectively, adopted as of 2001. The Commission shall consider whether any subsequent 
4.9 	amendments to the NAIC Long-Term Care Insurance Model Act or Long-Term Care 
4.10 	Insurance Model Regulation adopted by the NAIC require amending of the Uniform 
4.11 	Standards established by the Commission for long-term care insurance products;
4.12 	3. To receive and review in an expeditious manner Products filed with the 
4.13 	Commission, and rate filings for disability income and long-term care insurance Products, 
4.14 	and give approval of those Products and rate filings that satisfy the applicable Uniform 
4.15 	Standard, where such approval shall have the force and effect of law and be binding on the 
4.16 	Compacting States to the extent and in the manner provided in the Compact;
4.17 	4. To receive and review in an expeditious manner Advertisement relating to 
4.18 	long-term care insurance products for which Uniform Standards have been adopted by 
4.19 	the Commission, and give approval to all Advertisement that satisfies the applicable 
4.20 	Uniform Standard. For any product covered under this Compact, other than long-term 
4.21 	care insurance products, the Commission shall have the authority to require an insurer 
4.22 	to submit all or any part of its Advertisement with respect to that product for review or 
4.23 	approval prior to use, if the Commission determines that the nature of the product is such 
4.24 	that an Advertisement of the product could have the capacity or tendency to mislead the 
4.25 	public. The actions of the Commission as provided in this section shall have the force 
4.26 	and effect of law and shall be binding in the Compacting States to the extent and in the 
4.27 	manner provided in the Compact;
4.28 	5. To exercise its rule-making authority and designate Products and Advertisement 
4.29 	that may be subject to a self-certification process without the need for prior approval 
4.30 	by the Commission;
4.31 	6. To promulgate Operating Procedures, pursuant to Article VII of this Compact, 
4.32 	which shall be binding in the Compacting States to the extent and in the manner provided 
4.33 	in this compact;
4.34 	7. To bring and prosecute legal proceedings or actions in its name as the 
4.35 	Commission; provided, that the standing of any state insurance department to sue or be 
4.36 	sued under applicable law shall not be affected;
5.1 	8. To issue subpoenas requiring the attendance and testimony of witnesses and the 
5.2 	production of evidence;
5.3 	9. To establish and maintain offices;
5.4 	10. To purchase and maintain insurance and bonds;
5.5 	11. To borrow, accept or contract for services of personnel, including, but not limited 
5.6 	to, employees of a Compacting State;
5.7 	12. To hire employees, professionals or specialists, and elect or appoint officers, and 
5.8 	to fix their compensation, define their duties and give them appropriate authority to carry 
5.9 	out the purposes of the Compact, and determine their qualifications; and to establish the 
5.10 	Commission's personnel policies and programs relating to, among other things, conflicts 
5.11 	of interest, rates of compensation and qualifications of personnel;
5.12 	13. To accept any and all appropriate donations and grants of money, equipment, 
5.13 	supplies, materials and services, and to receive, utilize and dispose of the same; provided 
5.14 	that at all times the Commission shall strive to avoid any appearance of impropriety;
5.15 	14. To lease, purchase, accept appropriate gifts or donations of, or otherwise to own, 
5.16 	hold, improve or use, any property, real, personal or mixed; provided that at all times the 
5.17 	Commission shall strive to avoid any appearance of impropriety;
5.18 	15. To sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise 
5.19 	dispose of any property, real, personal or mixed;
5.20 	16. To remit filing fees to Compacting States as may be set forth in the Bylaws, 
5.21 	Rules or Operating Procedures;
5.22 	17. To enforce compliance by Compacting States with Rules, Uniform Standards, 
5.23 	Operating Procedures and Bylaws;
5.24 	18. To provide for dispute resolution among Compacting States;
5.25 	19. To advise Compacting States on issues relating to Insurers domiciled or doing 
5.26 	business in Noncompacting jurisdictions, consistent with the purposes of this Compact;
5.27 	20. To provide advice and training to those personnel in state insurance departments 
5.28 	responsible for product review, and to be a resource for state insurance departments;
5.29 	21. To establish a budget and make expenditures;
5.30 	22. To borrow money;
5.31 	23. To appoint committees, including advisory committees comprising Members, 
5.32 	state insurance regulators, state legislators or their representatives, insurance industry 
5.33 	and consumer representatives, and such other interested persons as may be designated 
5.34 	in the Bylaws;
5.35 	24. To provide and receive information from, and to cooperate with law enforcement 
5.36 	agencies;
6.1 	25. To adopt and use a corporate seal; and
6.2 	26. To perform such other functions as may be necessary or appropriate to achieve 
6.3 	the purposes of this Compact consistent with the state regulation of the business of 
6.4 	insurance.
6.5 	Article V. Organization of the Commission
6.6 	1. Membership, Voting and Bylaws
6.7 	a. Each Compacting State shall have and be limited to one Member. Each Member 
6.8 	shall be qualified to serve in that capacity pursuant to applicable law of the Compacting 
6.9 	State. Any Member may be removed or suspended from office as provided by the law 
6.10 	of the State from which he or she shall be appointed. Any vacancy occurring in the 
6.11 	Commission shall be filled in accordance with the laws of the Compacting State wherein 
6.12 	the vacancy exists. Nothing herein shall be construed to affect the manner in which a 
6.13 	Compacting State determines the election or appointment and qualification of its own 
6.14 	Commissioner.
6.15 	b. Each Member shall be entitled to one vote and shall have an opportunity 
6.16 	to participate in the governance of the Commission in accordance with the Bylaws. 
6.17 	Notwithstanding any provision herein to the contrary, no action of the Commission with 
6.18 	respect to the promulgation of a Uniform Standard shall be effective unless two-thirds of 
6.19 	the Members vote in favor thereof.
6.20 	c. The Commission shall, by a majority of the Members, prescribe Bylaws to govern 
6.21 	its conduct as may be necessary or appropriate to carry out the purposes, and exercise the 
6.22 	powers, of the Compact, including, but not limited to:
6.23 	i. Establishing the fiscal year of the Commission;
6.24 	ii. Providing reasonable procedures for appointing and electing members, as well as 
6.25 	holding meetings, of the Management Committee;
6.26 	iii. Providing reasonable standards and procedures: (i) for the establishment and 
6.27 	meetings of other committees, and (ii) governing any general or specific delegation of any 
6.28 	authority or function of the Commission;
6.29 	iv. Providing reasonable procedures for calling and conducting meetings of the 
6.30 	Commission that consist of a majority of Commission members, ensuring reasonable 
6.31 	advance notice of each such meeting and providing for the right of citizens to attend each 
6.32 	such meeting with enumerated exceptions designed to protect the public's interest, the 
6.33 	privacy of individuals, and insurers' proprietary information, including trade secrets. The 
6.34 	Commission may meet in camera only after a majority of the entire membership votes to 
6.35 	close a meeting en toto or in part. As soon as practicable, the Commission must make 
7.1 	public (i) a copy of the vote to close the meeting revealing the vote of each Member with 
7.2 	no proxy votes allowed, and (ii) votes taken during such meeting;
7.3 	v. Establishing the titles, duties and authority and reasonable procedures for the 
7.4 	election of the officers of the Commission;
7.5 	vi. Providing reasonable standards and procedures for the establishment of the 
7.6 	personnel policies and programs of the Commission. Notwithstanding any civil service 
7.7 	or other similar laws of any Compacting State, the Bylaws shall exclusively govern the 
7.8 	personnel policies and programs of the Commission;
7.9 	vii. Promulgating a code of ethics to address permissible and prohibited activities of 
7.10 	commission members and employees; and 
7.11 	viii. Providing a mechanism for winding up the operations of the Commission and 
7.12 	the equitable disposition of any surplus funds that may exist after the termination of the 
7.13 	Compact after the payment and/or reserving of all of its debts and obligations.
7.14 	d. The Commission shall publish its bylaws in a convenient form and file a copy 
7.15 	thereof and a copy of any amendment thereto, with the appropriate agency or officer in 
7.16 	each of the Compacting States.
7.17 	2. Management Committee, Officers and Personnel
7.18 	a. A Management Committee comprising no more than 14 members shall be 
7.19 	established as follows:
7.20 	i. One member from each of the six Compacting States with the largest premium 
7.21 	volume for individual and group annuities, life, disability income and long-term care 
7.22 	insurance products, determined from the records of the NAIC for the prior year;
7.23 	ii. Four members from those Compacting States with at least two percent of the 
7.24 	market based on the premium volume described above, other than the six Compacting 
7.25 	States with the largest premium volume, selected on a rotating basis as provided in the 
7.26 	Bylaws; and
7.27 	iii. Four members from those Compacting States with less than two percent of the 
7.28 	market, based on the premium volume described above, with one selected from each of 
7.29 	the four zone regions of the NAIC as provided in the Bylaws.
7.30 	b. The Management Committee shall have such authority and duties as may be set 
7.31 	forth in the Bylaws, including but not limited to:
7.32 	i. Managing the affairs of the Commission in a manner consistent with the Bylaws 
7.33 	and purposes of the Commission;
7.34 	ii. Establishing and overseeing an organizational structure within, and appropriate 
7.35 	procedures for, the Commission to provide for the creation of Uniform Standards and 
7.36 	other Rules, receipt and review of product filings, administrative and technical support 
8.1 	functions, review of decisions regarding the disapproval of a product filing, and the review 
8.2 	of elections made by a Compacting State to opt out of a Uniform Standard; provided that a 
8.3 	Uniform Standard shall not be submitted to the Compacting States for adoption unless 
8.4 	approved by two-thirds of the members of the Management Committee;
8.5 	iii. Overseeing the offices of the Commission; and
8.6 	iv. Planning, implementing, and coordinating communications and activities with 
8.7 	other state, federal and local government organizations in order to advance the goals 
8.8 	of the Commission.
8.9 	c. The Commission shall elect annually officers from the Management Committee, 
8.10 	with each having such authority and duties, as may be specified in the Bylaws.
8.11 	d. The Management Committee may, subject to the approval of the Commission, 
8.12 	appoint or retain an executive director for such period, upon such terms and conditions 
8.13 	and for such compensation as the Commission may deem appropriate. The executive 
8.14 	director shall serve as secretary to the Commission, but shall not be a Member of the 
8.15 	Commission. The executive director shall hire and supervise such other staff as may be 
8.16 	authorized by the Commission.
8.17 	3. Legislative and Advisory Committees
8.18 	a. A legislative committee comprising state legislators or their designees shall be 
8.19 	established to monitor the operations of, and make recommendations to, the Commission, 
8.20 	including the Management Committee; provided that the manner of selection and term of 
8.21 	any legislative committee member shall be as set forth in the Bylaws. Prior to the adoption 
8.22 	by the Commission of any Uniform Standard, revision to the Bylaws, annual budget or 
8.23 	other significant matter as may be provided in the Bylaws, the Management Committee 
8.24 	shall consult with and report to the legislative committee.
8.25 	b. The Commission shall establish two advisory committees, one of which shall 
8.26 	comprise consumer representatives independent of the insurance industry, and the other 
8.27 	comprising insurance industry representatives.
8.28 	c. The Commission may establish additional advisory committees as its Bylaws may 
8.29 	provide for the carrying out of its functions.
8.30 	4. Corporate Records of the Commission
8.31 	The Commission shall maintain its corporate books and records in accordance 
8.32 	with the Bylaws.
8.33 	5. Qualified Immunity, Defense, and Indemnification
8.34 	a. The Members, officers, executive director, employees, and representatives of 
8.35 	the Commission shall be immune from suit and liability, either personally or in their 
8.36 	official capacity, for any claim for damage to or loss of property or personal injury or 
9.1 	other civil liability caused by or arising out of any actual or alleged act, error or omission 
9.2 	that occurred, or that the person against whom the claim is made had a reasonable 
9.3 	basis for believing occurred within the scope of Commission employment, duties or 
9.4 	responsibilities; provided, that nothing in this paragraph shall be construed to protect any 
9.5 	such person from suit and/or liability for any damage, loss, injury or liability caused by 
9.6 	the intentional or willful and wanton misconduct of that person.
9.7 	b. The Commission shall defend any Member, officer, executive director, employee, 
9.8 	or representative of the Commission in any civil action seeking to impose liability arising 
9.9 	out of any actual or alleged act, error, or omission that occurred within the scope of 
9.10 	Commission employment, duties, or responsibilities, or that the person against whom 
9.11 	the claim is made had a reasonable basis for believing occurred within the scope of 
9.12 	Commission employment, duties, or responsibilities; provided, that nothing herein shall 
9.13 	be construed to prohibit that person from retaining his or her own counsel; and provided 
9.14 	further, that the actual or alleged act, error, or omission did not result from that person's 
9.15 	intentional or willful and wanton misconduct.
9.16 	c. The Commission shall indemnify and hold harmless any Member, officer, 
9.17 	executive director, employee, or representative of the Commission for the amount of any 
9.18 	settlement or judgment obtained against that person arising out of any actual or alleged 
9.19 	act, error, or omission that occurred within the scope of Commission employment, duties, 
9.20 	or responsibilities, or that such person had a reasonable basis for believing occurred 
9.21 	within the scope of Commission employment, duties, or responsibilities, provided, that the 
9.22 	actual or alleged act, error, or omission did not result from the intentional or willful and 
9.23 	wanton misconduct of that person.
9.24 	Article VI. Meetings and Acts of the Commission
9.25 	1. The Commission shall meet and take such actions as are consistent with the 
9.26 	provisions of this Compact and the Bylaws.
9.27 	2. Each Member of the Commission shall have the right and power to cast a vote to 
9.28 	which that Compacting State is entitled and to participate in the business and affairs of the 
9.29 	Commission. A Member shall vote in person or by such other means as provided in the 
9.30 	Bylaws. The Bylaws may provide for Members' participation in meetings by telephone or 
9.31 	other means of communication.
9.32 	3. The Commission shall meet at least once during each calendar year. Additional 
9.33 	meeting shall be held as set forth in the Bylaws.
9.34 	Article VII. Rules and Operating Procedures: Rulemaking Functions
9.35 	of the Commission and Opting Out of Uniform Standards
10.1 	1. Rulemaking Authority. The Commission shall promulgate reasonable Rules, 
10.2 	including Uniform Standards, and Operating Procedures in order to effectively and 
10.3 	efficiently achieve the purposes of this Compact. Notwithstanding the foregoing, in the 
10.4 	event the Commission exercises its rulemaking authority in a manner that is beyond the 
10.5 	scope of the purposes of this Act, or the powers granted hereunder, then such an action by 
10.6 	the Commission shall be invalid and have no force and effect.
10.7 	2. Rulemaking Procedure. Rules and Operating Procedures shall be made pursuant 
10.8 	to a rulemaking process that conforms to the Model State Administrative Procedure Act of 
10.9 	1981 as amended, as may be appropriate to the operations of the Commission. Before 
10.10 	the Commission adopts a Uniform Standard, the Commission shall give written notice 
10.11 	to the relevant state legislative committee(s) in each Compacting State responsible for 
10.12 	insurance issues of its intention to adopt the Uniform Standard. The Commission in 
10.13 	adopting a Uniform Standard shall consider fully all submitted materials and issue a 
10.14 	concise explanation of its decision.
10.15 	3. Effective Date and Opt Out of a Uniform Standard. A Uniform Standard shall 
10.16 	become effective 90 days after its promulgation by the Commission or such later date 
10.17 	as the Commission may determine; provided, however, that a Compacting State may 
10.18 	opt out of a Uniform Standard as provided in this Article. "Opt out" shall be defined as 
10.19 	any action by a Compacting State to decline to adopt or participate in a promulgated 
10.20 	Uniform Standard. All other Rules and Operating Procedures, and amendments thereto, 
10.21 	shall become effective as of the date specified in each Rule, Operating Procedure, or 
10.22 	amendment.
10.23 	4. Opt Out Procedure. A Compacting State may opt out of a Uniform Standard, 
10.24 	either by legislation or regulation duly promulgated by the Insurance Department under 
10.25 	the Compacting State's Administrative Procedure Act. If a Compacting State elects to opt 
10.26 	out of a Uniform Standard by regulation, it must (a) give written notice to the Commission 
10.27 	no later than ten business days after the Uniform Standard is promulgated, or at the time 
10.28 	the State becomes a Compacting State and (b) find that the Uniform Standard does not 
10.29 	provide reasonable protections to the citizens of the State, given the conditions in the State. 
10.30 	The Commissioner shall make specific findings of fact and conclusions of law, based on a 
10.31 	preponderance of the evidence, detailing the conditions in the State which warrant a 
10.32 	departure from the Uniform Standard and determining that the Uniform Standard would 
10.33 	not reasonably protect the citizens of the State. The Commissioner must consider and 
10.34 	balance the following factors and find that the conditions in the State and needs of the 
10.35 	citizens of the State outweigh: (i) the intent of the legislature to participate in, and the 
10.36 	benefits of, an interstate agreement to establish national uniform consumer protections for 
11.1 	the Products subject to this Act; and (ii) the presumption that a Uniform Standard adopted 
11.2 	by the Commission provides reasonable protections to consumers of the relevant Product.
11.3 	Notwithstanding the foregoing, a Compacting State may, at the time of its enactment 
11.4 	of this Compact, prospectively opt out of all Uniform Standards involving long-term care 
11.5 	insurance products by expressly providing for such opt out in the enacted Compact, and 
11.6 	such an opt out shall not be treated as a material variance in the offer or acceptance of 
11.7 	any State to participate in this Compact. Such an opt out shall be effective at the time 
11.8 	of enactment of this Compact by the Compacting State and shall apply to all existing 
11.9 	Uniform Standards involving long-term care insurance products and those subsequently 
11.10 	promulgated.
11.11 	5. Effect of Opt Out. If a Compacting State elects to opt out of a Uniform Standard, 
11.12 	the Uniform Standard shall remain applicable in the Compacting State electing to opt out 
11.13 	until such time the opt out legislation is enacted into law or the regulation opting out 
11.14 	becomes effective.
11.15 	Once the opt out of a Uniform Standard by a Compacting State becomes effective 
11.16 	as provided under the laws of that State, the Uniform Standard shall have no further 
11.17 	force and effect in that State unless and until the legislation or regulation implementing 
11.18 	the opt out is repealed or otherwise becomes ineffective under the laws of the State. If a 
11.19 	Compacting State opts out of a Uniform Standard after the Uniform Standard has been 
11.20 	made effective in that State, the opt out shall have the same prospective effect as provided 
11.21 	under Article XIV for withdrawals.
11.22 	6. Stay of Uniform Standard. If a Compacting State has formally initiated the 
11.23 	process of opting out of a Uniform Standard by regulation, and while the regulatory 
11.24 	opt out is pending, the Compacting State may petition the Commission, at least 15 days 
11.25 	before the effective date of the Uniform Standard, to stay the effectiveness of the Uniform 
11.26 	Standard in that State. The Commission may grant a stay if it determines the regulatory 
11.27 	opt out is being pursued in a reasonable manner and there is a likelihood of success. If a 
11.28 	stay is granted or extended by the Commission, the stay or extension thereof may postpone 
11.29 	the effective date by up to 90 days, unless affirmatively extended by the Commission; 
11.30 	provided, a stay may not be permitted to remain in effect for more than one year unless the 
11.31 	Compacting State can show extraordinary circumstances which warrant a continuance of 
11.32 	the stay, including, but not limited to, the existence of a legal challenge which prevents the 
11.33 	Compacting State from opting out. A stay may be terminated by the Commission upon 
11.34 	notice that the rulemaking process has been terminated.
11.35 	7. Not later than 30 days after a Rule or Operating Procedure is promulgated, 
11.36 	any person may file a petition for judicial review of the Rule or Operating Procedure; 
12.1 	provided, that the filing of such a petition shall not stay or otherwise prevent the Rule or 
12.2 	Operating Procedure from becoming effective unless the court finds that the petitioner 
12.3 	has a substantial likelihood of success. The court shall give deference to the actions of 
12.4 	the Commission consistent with applicable law and shall not find the Rule or Operating 
12.5 	Procedure to be unlawful if the Rule or Operating Procedure represents a reasonable 
12.6 	exercise of the Commission's authority.
12.7 	Article VIII. Commission Records and Enforcement
12.8 	1. The Commission shall promulgate Rules establishing conditions and procedures 
12.9 	for public inspection and copying of its information and official records, except such 
12.10 	information and records involving the privacy of individuals and insurers' trade secrets. 
12.11 	The Commission may promulgate additional Rules under which it may make available to 
12.12 	federal and state agencies, including law enforcement agencies, records and information 
12.13 	otherwise exempt from disclosure, and may enter into agreements with such agencies to 
12.14 	receive or exchange information or records subject to nondisclosure and confidentiality 
12.15 	provisions.
12.16 	2. Except as to privileged records, data and information, the laws of any Compacting 
12.17 	State pertaining to confidentiality or nondisclosure shall not relieve any Compacting 
12.18 	State Commissioner of the duty to disclose any relevant records, data or information to 
12.19 	the Commission; provided, that disclosure to the Commission shall not be deemed to 
12.20 	waive or otherwise affect any confidentiality requirement; and further provided, that, 
12.21 	except as otherwise expressly provided in this Act, the Commission shall not be subject 
12.22 	to the Compacting State's laws pertaining to confidentiality and nondisclosure with 
12.23 	respect to records, data and information in its possession. Confidential information 
12.24 	of the Commission shall remain confidential after such information is provided to any 
12.25 	Commissioner.
12.26 	3. The Commission shall monitor Compacting States for compliance with duly 
12.27 	adopted Bylaws, Rules, including Uniform Standards, and Operating Procedures. 
12.28 	The Commission shall notify any noncomplying Compacting State in writing of 
12.29 	its noncompliance with Commission Bylaws, Rules or Operating Procedures. If a 
12.30 	noncomplying Compacting State fails to remedy its noncompliance within the time 
12.31 	specified in the notice of noncompliance, the Compacting State shall be deemed to be in 
12.32 	default as set forth in Article XIV.
12.33 	4. The Commissioner of any State in which an Insurer is authorized to do business, 
12.34 	or is conducting the business of insurance, shall continue to exercise his or her authority 
12.35 	to oversee the market regulation of the activities of the Insurer in accordance with the 
13.1 	provisions of the State's law. The Commissioner's enforcement of compliance with the 
13.2 	Compact is governed by the following provisions:
13.3 	a. With respect to the Commissioner's market regulation of a Product or 
13.4 	Advertisement that is approved or certified to the Commission, the content of the 
13.5 	Product or Advertisement shall not constitute a violation of the provisions, standards or 
13.6 	requirements of the Compact except upon a final order of the Commission, issued at the 
13.7 	request of a Commissioner after prior notice to the Insurer and an opportunity for hearing 
13.8 	before the Commission.
13.9 	b. Before a Commissioner may bring an action for violation of any provision, 
13.10 	standard or requirement of the Compact relating to the content of an Advertisement not 
13.11 	approved or certified to the Commission, the Commission, or an authorized Commission 
13.12 	officer or employee, must authorize the action. However, authorization pursuant to this 
13.13 	paragraph does not require notice to the Insurer, opportunity for hearing or disclosure of 
13.14 	requests for authorization or records of the Commission's action on such requests.
13.15 	Article IX. Dispute Resolution
13.16 	The Commission shall attempt, upon the request of a Member, to resolve any 
13.17 	disputes or other issues that are subject to this Compact and which may arise between two 
13.18 	or more Compacting States, or between Compacting States and Noncompacting States, 
13.19 	and the Commission shall promulgate an Operating Procedure providing for resolution of 
13.20 	such disputes.
13.21 	Article X. Product Filing and Approval
13.22 	1. Insurers and Third Party Filers seeking to have a Product approved by the 
13.23 	Commission shall file the Product with, and pay applicable filing fees to, the Commission. 
13.24 	Nothing in this Act shall be construed to restrict or otherwise prevent an insurer from 
13.25 	filing its Product with the insurance department in any State wherein the insurer is licensed 
13.26 	to conduct the business of insurance, and such filing shall be subject to the laws of the 
13.27 	States where filed.
13.28 	2. The Commission shall establish appropriate filing and review processes and 
13.29 	procedures pursuant to Commission Rules and Operating Procedures. Notwithstanding 
13.30 	any provision herein to the contrary, the Commission shall promulgate Rules to establish 
13.31 	conditions and procedures under which the Commission will provide public access to 
13.32 	Product filing information. In establishing such Rules, the Commission shall consider 
13.33 	the interests of the public in having access to such information, as well as protection of 
13.34 	personal medical and financial information and trade secrets, that may be contained in a 
13.35 	Product filing or supporting information.
14.1 	3. Any Product approved by the Commission may be sold or otherwise issued in 
14.2 	those Compacting States for which the Insurer is legally authorized to do business.
14.3 	Article XI. Review of Commission Decisions Regarding Filings
14.4 	1. Not later than 30 days after the Commission has given notice of a disapproved 
14.5 	Product or Advertisement filed with the Commission, the Insurer or Third Party Filer 
14.6 	whose filing was disapproved may appeal the determination to a review panel appointed 
14.7 	by the Commission. The Commission shall promulgate Rules to establish procedures for 
14.8 	appointing such review panels and provide for notice and hearing. An allegation that the 
14.9 	Commission, in disapproving a Product or Advertisement filed with the Commission, 
14.10 	acted arbitrarily, capriciously, or in a manner that is an abuse of discretion or otherwise 
14.11 	not in accordance with the law, is subject to judicial review in accordance with Article 
14.12 	III, Section 4.
14.13 	2. The Commission shall have authority to monitor, review and reconsider Products 
14.14 	and Advertisement subsequent to their filing or approval upon a finding that the product 
14.15 	does not meet the relevant Uniform Standard. Where appropriate, the Commission may 
14.16 	withdraw or modify its approval after proper notice and hearing, subject to the appeal 
14.17 	process in Section 1 above.
14.18 	Article XII. Finance
14.19 	1. The Commission shall pay or provide for the payment of the reasonable expenses 
14.20 	of its establishment and organization. To fund the cost of its initial operations, the 
14.21 	Commission may accept contributions and other forms of funding from the National 
14.22 	Association of Insurance Commissioners, Compacting States, and other sources. 
14.23 	Contributions and other forms of funding from other sources shall be of such a nature 
14.24 	that the independence of the Commission concerning the performance of its duties shall 
14.25 	not be compromised.
14.26 	2. The Commission shall collect a filing fee from each Insurer and Third Party Filer 
14.27 	filing a product with the Commission to cover the cost of the operations and activities 
14.28 	of the Commission and its staff in a total amount sufficient to cover the Commission's 
14.29 	annual budget.
14.30 	3. The Commission's budget for a fiscal year shall not be approved until it has been 
14.31 	subject to notice and comment as set forth in Article VII of this Compact.
14.32 	4. The Commission shall be exempt from all taxation in and by the Compacting 
14.33 	states.
14.34 	5. The Commission shall not pledge the credit of any Compacting State, except by 
14.35 	and with the appropriate legal authority of that Compacting State.
15.1 	6. The Commission shall keep complete and accurate accounts of all its internal 
15.2 	receipts, including grants and donations, and disbursements of all funds under its control. 
15.3 	The internal financial accounts of the Commission shall be subject to the accounting 
15.4 	procedures established under its Bylaws. The financial accounts and reports including the 
15.5 	system of internal controls and procedures of the Commission shall be audited annually by 
15.6 	an independent certified public accountant. Upon the determination of the Commission, 
15.7 	but no less frequently than every three years, the review of the independent auditor shall 
15.8 	include a management and performance audit of the Commission. The Commission shall 
15.9 	make an Annual Report to the Governor and legislature of the Compacting States, which 
15.10 	shall include a report of the independent audit. The Commission's internal accounts shall 
15.11 	not be confidential and such materials may be shared with the Commissioner of any 
15.12 	Compacting State upon request provided, however, that any work papers related to any 
15.13 	internal or independent audit and any information regarding the privacy of individuals and 
15.14 	insurers' proprietary information, including trade secrets, shall remain confidential.
15.15 	7. No Compacting State shall have any claim to or ownership of any property 
15.16 	held by or vested in the Commission or to any Commission funds held pursuant to the 
15.17 	provisions of this Compact.
15.18 	Article XIII. Compacting States, Effective Date and Amendment
15.19 	1. Any State is eligible to become a Compacting State.
15.20 	2. The Compact shall become effective and binding upon legislative enactment 
15.21 	of the Compact into law by two Compacting States; provided, the Commission shall 
15.22 	become effective for purposes of adopting Uniform Standards for, reviewing, and giving 
15.23 	approval or disapproval of, Products filed with the Commission that satisfy applicable 
15.24 	Uniform Standards only after 26 States are Compacting States or, alternatively, by States 
15.25 	representing greater than 40 percent of the premium volume for life insurance, annuity, 
15.26 	disability income and long-term care insurance products, based on records of the NAIC 
15.27 	for the prior year. Thereafter, it shall become effective and binding as to any other 
15.28 	Compacting State upon enactment of the Compact into law by that State.
15.29 	3. Amendments to the Compact may be proposed by the Commission for enactment 
15.30 	by the Compacting States. No amendment shall become effective and binding upon the 
15.31 	Commission and the Compacting States unless and until all Compacting States enact 
15.32 	the amendment into law.
15.33 	Article XIV. Withdrawal, Default and Termination
15.34 	1. Withdrawal
15.35 	a. Once effective, the Compact shall continue in force and remain binding upon each 
15.36 	and every Compacting State; provided, that a Compacting State may withdraw from the 
16.1 	Compact ("Withdrawing State") by enacting a statute specifically repealing the statute 
16.2 	which enacted the Compact into law.
16.3 	b. The effective date of withdrawal is the effective date of the repealing statute. 
16.4 	However, the withdrawal shall not apply to any product filings approved or self-certified, 
16.5 	or any Advertisement of such products, on the date the repealing statute becomes effective, 
16.6 	except by mutual agreement of the Commission and the Withdrawing State unless the 
16.7 	approval is rescinded by the Withdrawing State as provided in Paragraph e of this section.
16.8 	c. The Commissioner of the Withdrawing State shall immediately notify the 
16.9 	Management Committee in writing upon the introduction of legislation repealing this 
16.10 	Compact in the Withdrawing State.
16.11 	d. The Commission shall notify the other Compacting States of the introduction of 
16.12 	such legislation within ten days after its receipt of notice thereof.
16.13 	e. The Withdrawing State is responsible for all obligations, duties and liabilities 
16.14 	incurred through the effective date of withdrawal, including any obligations, the 
16.15 	performance of which extend beyond the effective date of withdrawal, except to the extent 
16.16 	those obligations may have been released or relinquished by mutual agreement of the 
16.17 	Commission and the Withdrawing State. The Commission's approval of Products and 
16.18 	Advertisement prior to the effective date of withdrawal shall continue to be effective and 
16.19 	be given full force and effect in the Withdrawing State, unless formally rescinded by 
16.20 	the Withdrawing State in the same manner as provided by the laws of the Withdrawing 
16.21 	State for the prospective disapproval of products or advertisement previously approved 
16.22 	under state law.
16.23 	f. Reinstatement following withdrawal of any Compacting State shall occur upon 
16.24 	the effective date of the Withdrawing State reenacting the Compact.
16.25 	2. Default
16.26 	a. If the Commission determines that any Compacting State has at any time defaulted 
16.27 	("Defaulting State") in the performance of any of its obligations or responsibilities under 
16.28 	this Compact, the Bylaws or duly promulgated Rules or Operating Procedures, then, after 
16.29 	notice and hearing as set forth in the Bylaws, all rights, privileges and benefits conferred 
16.30 	by this Compact on the Defaulting State shall be suspended from the effective date of 
16.31 	default as fixed by the Commission. The grounds for default include, but are not limited 
16.32 	to, failure of a Compacting State to perform its obligations or responsibilities, and any 
16.33 	other grounds designated in Commission Rules. The Commission shall immediately 
16.34 	notify the Defaulting State in writing of the Defaulting State's suspension pending a cure 
16.35 	of the default. The Commission shall stipulate the conditions and the time period within 
16.36 	which the Defaulting State must cure its default. If the Defaulting State fails to cure the 
17.1 	default within the time period specified by the Commission, the Defaulting State shall 
17.2 	be terminated form the Compact and all rights, privileges and benefits conferred by this 
17.3 	Compact shall be terminated from the effective date of termination.
17.4 	b. Product approvals by the Commission or product self-certifications, or any 
17.5 	Advertisement in connection with such product, that are in force on the effective date of 
17.6 	termination shall remain in force in the Defaulting State in the same manner as if the 
17.7 	Defaulting State had withdrawn voluntarily pursuant to Section 1 of this article.
17.8 	c. Reinstatement following termination of any Compacting State requires a 
17.9 	reenactment of the Compact.
17.10 	3. Dissolution of Compact
17.11 	a. The Compact dissolves effective upon the date of the withdrawal or default of the 
17.12 	Compacting State which reduces membership in the Compact to one Compacting State.
17.13 	b. Upon the dissolution of this Compact, the Compact becomes null and void and 
17.14 	shall be of no further force or effect, and the business and affairs of the Commission shall 
17.15 	be wound up and any surplus funds shall be distributed in accordance with the Bylaws.
17.16 	Article XV. Severability and Construction
17.17 	1. The provisions of this Compact shall be severable; and if any phrase, clause, 
17.18 	sentence, or provision is deemed unenforceable, the remaining provisions of the Compact 
17.19 	shall be enforceable.
17.20 	2. The provisions of this Compact shall be liberally construed to effectuate its 
17.21 	purposes.
17.22 	Article XVI. Binding Effect of Compact and Other Laws
17.23 	1. Other Laws
17.24 	a. Nothing herein prevents the enforcement of any other law of a Compacting State, 
17.25 	except as provided in Paragraph b of this section.
17.26 	b. For any Product approved or certified to the Commission, the Rules, Uniform 
17.27 	Standards, and any other requirements of the Commission shall constitute the exclusive 
17.28 	provisions applicable to the content, approval, and certification of such Products. For 
17.29 	Advertisement that is subject to the Commission's authority, any Rule, Uniform Standard, 
17.30 	or other requirement of the Commission which governs the content of the Advertisement 
17.31 	shall constitute the exclusive provision that a Commissioner may apply to the content of 
17.32 	the Advertisement. Notwithstanding the foregoing, no action taken by the Commission 
17.33 	shall abrogate or restrict: (i) the access of any person to state courts; (ii) remedies available 
17.34 	under state law related to breach of contract, tort, or other laws not specifically directed 
17.35 	to the content of the Product; (iii) state law relating to the construction of insurance 
18.1 	contracts; or (iv) the authority of the attorney general of the state, including but not limited 
18.2 	to maintaining any actions or proceedings, as authorized by law.
18.3 	c. All insurance products filed with individual States shall be subject to the laws 
18.4 	of those States.
18.5 	2. Binding Effect of this Compact
18.6 	a. All lawful actions of the Commission, including all Rules and Operating 
18.7 	Procedures promulgated by the Commission, are binding upon the Compacting States.
18.8 	b. All agreements between the Commission and the Compacting States are binding 
18.9 	in accordance with their terms.
18.10 	c. Upon the request of a party to a conflict over the meaning or interpretation of 
18.11 	Commission actions, and upon a majority vote of the Compacting States, the Commission 
18.12 	may issue advisory opinions regarding the meaning or interpretation in dispute.
18.13 	d. In the event any provision of this Compact exceeds the constitutional limits 
18.14 	imposed on the legislature of any Compacting State, the obligations, duties, powers 
18.15 	or jurisdiction sought to be conferred by that provision upon the Commission shall 
18.16 	be ineffective as to that Compacting State, and those obligations, duties, powers, or 
18.17 	jurisdiction shall remain in the Compacting State and shall be exercised by the agency 
18.18 	thereof to which those obligations, duties, powers, or jurisdiction are delegated by law in 
18.19 	effect at the time this Compact becomes effective.
18.20 		Subd. 2.Commission representative. The commissioner of commerce is the 
18.21 	representative of this state to the commission.