                                 CODE OF VIRGINIA

FORM OF COMPACT (§ 38.2-6200)

The General Assembly hereby enacts, and the Commonwealth of Virginia hereby
enters into, the Interstate Insurance Product Regulation Compact with any and
all states legally joining therein according to its terms, in the form
substantially as follows:
		Article I.
		Purposes.
		The purposes of this Compact are, through means of joint and cooperative
action among the Compacting States:

1. To promote and protect the interest of consumers of individual and group
annuity, life insurance, disability income and long-term care insurance
products;

2. To develop uniform standards for insurance products covered under the
Compact;

3. To establish a central clearinghouse to receive and provide prompt review of
insurance products covered under the Compact and, in certain cases,
advertisements related thereto, submitted by insurers authorized to do business
in one or more Compacting States;

4. To give appropriate regulatory approval to those product filings and
advertisements satisfying the applicable uniform standard;

5. To improve coordination of regulatory resources and expertise between state
insurance departments regarding the setting of uniform standards and review of
insurance products covered under the Compact;

6. To create the Interstate Insurance Product Regulation Commission; and

7. To perform these and such other related functions as may be consistent with
the state regulation of the business of insurance.
			Article II.
			Definitions.
			For purposes of this Compact:

1. &#8220;Advertisement&#8221; means any material designed to create public
interest in a Product, or induce the public to purchase, increase, modify,
reinstate, borrow on, surrender, replace, or retain a policy, as more
specifically defined in the Rules and Operating Procedures of the Commission.

2. &#8220;Bylaws&#8221; mean those bylaws established by the Commission for its
governance, or for directing or controlling the Commission&#8217;s actions or
conduct.

3. &#8220;Compacting State&#8221; means any State which has enacted this Compact
legislation and which has not withdrawn pursuant to Article XIV, Section 1, or
been terminated pursuant to Article XIV, Section 2.

4. &#8220;Commission&#8221; means the &#8220;Interstate Insurance Product
Regulation Commission&#8221; established by this Compact.

5. &#8220;Commissioner&#8221; means the chief insurance regulatory official of a
State including, but not limited to, commissioner, superintendent, director, or
administrator.

6. &#8220;Domiciliary State&#8221; means the state in which an Insurer is
incorporated or organized; or, in the case of an alien Insurer, its state of
entry.

7. &#8220;Insurer&#8221; means any entity licensed by a State to issue contracts
of insurance for any of the lines of insurance covered by this Act.

8. &#8220;Member&#8221; means the person chosen by a Compacting State as its
representative to the Commission, or his or her designee.

9. &#8220;Non-compacting State&#8221; means any State which is not at the time a
Compacting State.

10. &#8220;Operating Procedures&#8221; mean procedures promulgated by the
Commission implementing a Rule, Uniform Standard or a provision of this Compact.

11. &#8220;Product&#8221; means the form of a policy or contract, including any
application, endorsement, or related form which is attached to and made a part
of the policy or contract, and any evidence of coverage or certificate, for an
individual or group annuity, life insurance, disability income or long-term care
insurance product that an Insurer is authorized to issue.

12. &#8220;Rule&#8221; means a statement of general or particular applicability
and future effect promulgated by the Commission, including a Uniform Standard
developed pursuant to Article VII of this Compact, designed to implement,
interpret, or prescribe law or policy or describing the organization, procedure,
or practice requirements of the Commission, which shall have the force and
effect of law in the Compacting States.

13. &#8220;State&#8221; means any state, district or territory of the United
States of America.

14. &#8220;Third-Party Filer&#8221; means an entity that submits a Product
filing to the Commission on behalf of an Insurer.

15. &#8220;Uniform Standard&#8221; means a standard adopted by the Commission
for a Product line, pursuant to Article VII of this Compact, and shall include
all of the Product requirements in aggregate; provided, that each Uniform
Standard shall be construed, whether express or implied, to prohibit the use of
any inconsistent, misleading or ambiguous provisions in a Product and the form
of the Product made available to the public shall not be unfair, inequitable or
against public policy as determined by the Commission.
			Article III.
			Establishment of the Commission and Venue.

1. The Compacting States hereby create and establish a joint public agency known
as the &#8220;Interstate Insurance Product Regulation Commission.&#8221;
Pursuant to Article IV, the Commission will have the power to develop Uniform
Standards for Product lines, receive and provide prompt review of Products filed
therewith, and give approval to those Product filings satisfying applicable
Uniform Standards; provided, it is not intended for the Commission to be the
exclusive entity for receipt and review of insurance product filings. Nothing
herein shall prohibit any Insurer from filing its product in any State wherein
the Insurer is licensed to conduct the business of insurance; and any such
filing shall be subject to the laws of the State where filed.

2. The Commission is a body corporate and politic, and an instrumentality of the
Compacting States.

3. The Commission is solely responsible for its liabilities except as otherwise
specifically provided in this Compact.

4. Venue is proper and judicial proceedings by or against the Commission shall
be brought solely and exclusively in a court of competent jurisdiction where the
principal office of the Commission is located.
			Article IV.
			Powers of the Commission.
			The Commission shall have the following powers:

1. To promulgate Rules, pursuant to Article VII of this Compact, which shall
have the force and effect of law and shall be binding in the Compacting States
to the extent and in the manner provided in this Compact;

2. To exercise its rule-making authority and establish reasonable Uniform
Standards for Products covered under the Compact, and Advertisement related
thereto, which shall have the force and effect of law and shall be binding in
the Compacting States, but only for those Products filed with the Commission,
provided, that a Compacting State shall have the right to opt out of such
Uniform Standard pursuant to Article VII, to the extent and in the manner
provided in this Compact, and, provided further, that any Uniform Standard
established by the Commission for long-term care insurance products may provide
the same or greater protections for consumers as, but shall not provide less
than, those protections set forth in the National Association of Insurance
Commissioners&#8217; Long-Term Care Insurance Model Act and Long-Term Care
Insurance Model Regulation, respectively, adopted as of 2001. The Commission
shall consider whether any subsequent amendments to the NAIC Long-Term Care
Insurance Model Act or Long-Term Care Insurance Model Regulation adopted by the
NAIC require amending of the Uniform Standards established by the Commission for
long-term care insurance products;

3. To receive and review in an expeditious manner Products filed with the
Commission, and rate filings for disability income and long-term care insurance
Products, and give approval of those Products and rate filings that satisfy the
applicable Uniform Standard, where such approval shall have the force and effect
of law and be binding on the Compacting States to the extent and in the manner
provided in the Compact;

4. To receive and review in an expeditious manner Advertisement relating to
long-term care insurance products for which Uniform Standards have been adopted
by the Commission, and give approval to all Advertisement that satisfies the
applicable Uniform Standard. For any product covered under this Compact, other
than long-term care insurance products, the Commission shall have the authority
to require an insurer to submit all or any part of its Advertisement with
respect to that product for review or approval prior to use, if the Commission
determines that the nature of the product is such that an Advertisement of the
product could have the capacity or tendency to mislead the public. The actions
of Commission as provided in this section shall have the force and effect of law
and shall be binding in the Compacting States to the extent and in the manner
provided in the Compact;

5. To exercise its rule-making authority and designate Products and
Advertisement that may be subject to a self-certification process without the
need for prior approval by the Commission;

6. To promulgate Operating Procedures, pursuant to Article VII of this Compact,
which shall be binding in the Compacting States to the extent and in the manner
provided in this Compact;

7. To bring and prosecute legal proceedings or actions in its name as the
Commission; provided, that the standing of any state insurance department to sue
or be sued under applicable law shall not be affected;

8. To issue subpoenas requiring the attendance and testimony of witnesses and
the production of evidence;

9. To establish and maintain offices;

10. To purchase and maintain insurance and bonds;

11. To borrow, accept or contract for services of personnel, including, but not
limited to, employees of a Compacting State;

12. To hire employees, professionals or specialists, and elect or appoint
officers, and to fix their compensation, define their duties and give them
appropriate authority to carry out the purposes of the Compact, and determine
their qualifications; and to establish the Commission&#8217;s personnel policies
and programs relating to, among other things, conflicts of interest, rates of
compensation and qualifications of personnel;

13. To accept any and all appropriate donations and grants of money, equipment,
supplies, materials and services, and to receive, utilize and dispose of the
same; provided that at all times the Commission shall strive to avoid any
appearance of impropriety;

14. To lease, purchase, accept appropriate gifts or donations of, or otherwise
to own, hold, improve or use, any property, real, personal or mixed; provided
that at all times the Commission shall strive to avoid any appearance of
impropriety;

15. To sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise
dispose of any property, real, personal or mixed;

16. To remit filing fees to Compacting States as may be set forth in the Bylaws,
Rules or Operating Procedures;

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

18. To provide for dispute resolution among Compacting States;

19. To advise Compacting States on issues relating to Insurers domiciled or
doing business in Non-compacting jurisdictions, consistent with the purposes of
this Compact;

20. To provide advice and training to those personnel in state insurance
departments responsible for product review, and to be a resource for state
insurance departments;

21. To establish a budget and make expenditures;

22. To borrow money;

23. To appoint committees, including advisory committees comprising Members,
state insurance regulators, state legislators or their representatives,
insurance industry and consumer representatives, and such other interested
persons as may be designated in the Bylaws;

24. To provide and receive information from, and to cooperate with,
law-enforcement agencies;

25. To adopt and use a corporate seal; and

26. To perform such other functions as may be necessary or appropriate to
achieve the purposes of this Compact consistent with the state regulation of the
business of insurance.
			Article V.
			Organization of the Commission.

1. Membership, Voting and Bylaws.
			a. Each Compacting State shall have and be limited to one Member. Each Member
shall be qualified to serve in that capacity pursuant to applicable law of the
Compacting State. Any Member may be removed or suspended from office as provided
by the law of the State from which he or she shall be appointed. Any vacancy
occurring in the Commission shall be filled in accordance with the laws of the
Compacting State wherein the vacancy exists. Nothing herein shall be construed
to affect the manner in which a Compacting State determines the election or
appointment and qualification of its own Commissioner.
			b. Each Member shall be entitled to one vote and shall have an opportunity to
participate in the governance of the Commission in accordance with the Bylaws.
Notwithstanding any provision herein to the contrary, no action of the
Commission with respect to the promulgation of a Uniform Standard shall be
effective unless two-thirds of the Members vote in favor thereof.
			c. The Commission shall, by a majority of the Members, prescribe Bylaws to
govern its conduct as may be necessary or appropriate to carry out the purposes,
and exercise the powers, of the Compact, including, but not limited to:
			i. Establishing the fiscal year of the Commission;
			ii. Providing reasonable procedures for appointing and electing members, as
well as holding meetings, of the Management Committee;
			iii. Providing reasonable standards and procedures: (i) for the establishment
and meetings of other committees, and (ii) governing any general or specific
delegation of any authority or function of the Commission;
			iv. Providing reasonable procedures for calling and conducting meetings of
the Commission that consists of a majority of Commission members, ensuring
reasonable advance notice of each such meeting, and providing for the right of
citizens to attend each such meeting with enumerated exceptions designed to
protect the public&#8217;s interest, the privacy of individuals, and
insurers&#8217; proprietary information, including trade secrets. The Commission
may meet in camera only after a majority of the entire membership votes to close
a meeting en toto or in part. As soon as practicable, the Commission must make
public (i) a copy of the vote to close the meeting revealing the vote of each
Member with no proxy votes allowed, and (ii) votes taken during such meeting;
			v. Establishing the titles, duties and authority and reasonable procedures
for the election of the officers of the Commission;
			vi. Providing reasonable standards and procedures for the establishment of
the personnel policies and programs of the Commission. Notwithstanding any civil
service or other similar laws of any Compacting State, the Bylaws shall
exclusively govern the personnel policies and programs of the Commission;
			vii. Promulgating a code of ethics to address permissible and prohibited
activities of Commission members and employees; and
			viii. Providing a mechanism for winding up the operations of the Commission
and the equitable disposition of any surplus funds that may exist after the
termination of the Compact after the payment and/or reserving of all of its
debts and obligations.
			d. The Commission shall publish its Bylaws in a convenient form and file a
copy thereof and a copy of any amendment thereto, with the appropriate agency or
officer in each of the Compacting States.

2. Management Committee, Officers and Personnel.
			a. A Management Committee comprising no more than 14 members shall be
established as follows:
			i. One member from each of the six Compacting States with the largest premium
volume for individual and group annuities, life, disability income, and
long-term care insurance products, determined from the records of the NAIC for
the prior year;
			ii. Four members from those Compacting States with at least two percent of
the market based on the premium volume described above, other than the six
Compacting States with the largest premium volume, selected on a rotating basis
as provided in the Bylaws; and
			iii. Four members from those Compacting States with less than two percent of
the market, based on the premium volume described above, with one selected from
each of the four zone regions of the NAIC as provided in the Bylaws.
			b. The Management Committee shall have such authority and duties as may be
set forth in the Bylaws, including but not limited to:
			i. Managing the affairs of the Commission in a manner consistent with the
Bylaws and purposes of the Commission;
			ii. Establishing and overseeing an organizational structure within, and
appropriate procedures for, the Commission to provide for the creation of
Uniform Standards and other Rules, receipt and review of product filings,
administrative and technical support functions, review of decisions regarding
the disapproval of a product filing, and the review of elections made by a
Compacting State to opt out of a Uniform Standard; provided that a Uniform
Standard shall not be submitted to the Compacting States for adoption unless
approved by two-thirds of the members of the Management Committee;
			iii. Overseeing the offices of the Commission; and
			iv. Planning, implementing, and coordinating communications and activities
with other state, federal and local government organizations in order to advance
the goals of the Commission.
			c. The Commission shall elect annually officers from the Management
Committee, with each having such authority and duties as may be specified in the
Bylaws.
			d. The Management Committee may, subject to the approval of the Commission,
appoint or retain an executive director for such period, upon such terms and
conditions and for such compensation as the Commission may deem appropriate. The
executive director shall serve as secretary to the Commission, but shall not be
a Member of the Commission. The executive director shall hire and supervise such
other staff as may be authorized by the Commission.

3. Legislative and Advisory Committees.
			a. A legislative committee comprising state legislators or their designees
shall be established to monitor the operations of, and make recommendations to,
the Commission, including the Management Committee; provided that the manner of
selection and term of any legislative committee member shall be as set forth in
the Bylaws. Prior to the adoption by the Commission of any Uniform Standard,
revision to the Bylaws, annual budget, or other significant matter as may be
provided in the Bylaws, the Management Committee shall consult with and report
to the legislative committee.
			b. The Commission shall establish two advisory committees, one of which shall
comprise consumer representatives independent of the insurance industry, and the
other comprising insurance industry representatives.
			c. The Commission may establish additional advisory committees as its Bylaws
may provide for the carrying out of its functions.

4. Corporate Records of the Commission.
			The Commission shall maintain its corporate books and records in accordance
with the Bylaws.

5. Qualified Immunity, Defense and Indemnification.
			a. The Members, officers, executive director, employees and representatives
of the Commission shall be immune from suit and liability, either personally or
in their official capacity, for any claim for damage to or loss of property or
personal injury or other civil liability caused by or arising out of any actual
or alleged act, error or omission that occurred, or that the person against whom
the claim is made had a reasonable basis for believing occurred within the scope
of Commission employment, duties or responsibilities; provided, that nothing in
this paragraph shall be construed to protect any such person from suit and/or
liability for any damage, loss, injury or liability caused by the intentional or
willful and wanton misconduct of that person.
			b. The Commission shall defend any Member, officer, executive director,
employee or representative of the Commission in any civil action seeking to
impose liability arising out of any actual or alleged act, error or omission
that occurred within the scope of Commission employment, duties or
responsibilities, or that the person against whom the claim is made had a
reasonable basis for believing occurred within the scope of Commission
employment, duties or responsibilities; provided, that nothing herein shall be
construed to prohibit that person from retaining his or her own counsel; and
provided further, that the actual or alleged act, error or omission did not
result from that person&#8217;s intentional or willful and wanton misconduct.
			c. The Commission shall indemnify and hold harmless any Member, officer,
executive director, employee or representative of the Commission for the amount
of any settlement or judgment obtained against that person arising out of any
actual or alleged act, error or omission that occurred within the scope of
Commission employment, duties or responsibilities; or that such person had a
reasonable basis for believing occurred 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.
			Article VI.
			Meetings and Acts of the Commission.

1. The Commission shall meet and take such actions as are consistent with the
provisions of this Compact and the Bylaws.

2. Each Member of the Commission shall have the right and power to cast a vote
to which that Compacting State is entitled and to participate in the business
and affairs of the Commission. A Member shall vote in person or by such other
means as provided in the Bylaws. The Bylaws may provide for Members&#8217;
participation in meetings by telephone or other means of communication.

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

1. Rulemaking Authority. The Commission shall promulgate reasonable Rules,
including Uniform Standards, and Operating Procedures in order to effectively
and efficiently achieve the purposes of this Compact. Notwithstanding the
foregoing, in the event the Commission exercises its rulemaking authority in a
manner that is beyond the scope of the purposes of this Act, or the powers
granted hereunder, then such an action by the Commission shall be invalid and
have no force and effect.

2. Rulemaking Procedure. Rules and Operating Procedures shall be made pursuant
to a rulemaking process that conforms to the Model State Administrative
Procedure Act of 1981, as amended, as may be appropriate to the operations of
the Commission. Before the Commission adopts a Uniform Standard, the Commission
shall give written notice to the relevant state legislative committee(s) in each
Compacting State responsible for insurance issues of its intention to adopt the
Uniform Standard. The Commission in adopting a Uniform Standard shall consider
fully all submitted materials and issue a concise explanation of its decision.

3. Effective Date and Opt Out of a Uniform Standard. A Uniform Standard shall
become effective 90 days after its promulgation by the Commission or such later
date as the Commission may determine; provided, however, that a Compacting State
may opt out of a Uniform Standard as provided in this Article. &#8220;Opt
out&#8221; shall be defined as any action by a Compacting State to decline to
adopt or participate in a promulgated Uniform Standard. All other Rules and
Operating Procedures, and amendments thereto, shall become effective as of the
date specified in each Rule, Operating Procedure or amendment.

4. Opt Out Procedure. A Compacting State may opt out of a Uniform Standard,
either by legislation or regulation duly promulgated by the Insurance Department
under the Compacting State&#8217;s Administrative Procedure Act or duly
promulgated pursuant to the Compacting State&#8217;s law. If a Compacting State
elects to opt out of a Uniform Standard by regulation, it must (a) give written
notice to the Commission no later than 10 business days after the Uniform
Standard is promulgated, or at the time the State becomes a Compacting State and
(b) find that the Uniform Standard does not provide reasonable protections to
the citizens of the State, given the conditions in the State. The Commissioner
or tribunal shall make specific findings of fact and conclusions of law, based
on a preponderance of the evidence, detailing the conditions in the State which
warrant a departure from the Uniform Standard and determining that the Uniform
Standard would not reasonably protect the citizens of the State. The
Commissioner or tribunal must consider and balance the following factors and
find that the conditions in the State and needs of the citizens of the State
outweigh: (i) the intent of the legislature to participate in, and the benefits
of, an interstate agreement to establish national uniform consumer protections
for the Products subject to this Act; and (ii) the presumption that a Uniform
Standard adopted by the Commission provides reasonable protections to consumers
of the relevant Product.
			Notwithstanding the foregoing, a Compacting State may, at the time of its
enactment of this Compact, prospectively opt out of all Uniform Standards
involving long-term care insurance products by expressly providing for such opt
out in the enacted Compact, and such an opt out shall not be treated as a
material variance in the offer or acceptance of any State to participate in this
Compact. Such an opt out shall be effective at the time of enactment of this
Compact by the Compacting State and shall apply to all existing Uniform
Standards involving long-term care insurance products and those subsequently
promulgated.

5. Effect of Opt Out. If a Compacting State elects to opt out of a Uniform
Standard, the Uniform Standard shall remain applicable in the Compacting State
electing to opt out until such time the opt out legislation is enacted into law
or the regulation opting out becomes effective.
			Once the opt out of a Uniform Standard by a Compacting State becomes
effective as provided under the laws of that State, the Uniform Standard shall
have no further force and effect in that State unless and until the legislation
or regulation implementing the opt out is repealed or otherwise becomes
ineffective under the laws of the State. If a Compacting State opts out of a
Uniform Standard after the Uniform Standard has been made effective in that
State, the opt out shall have the same prospective effect as provided under
Article XIV for withdrawals.

6. Stay of Uniform Standard. If a Compacting State has formally initiated the
process of opting out of a Uniform Standard by regulation, and while the
regulatory opt out is pending, the Compacting State may petition the Commission,
at least 15 days before the effective date of the Uniform Standard, to stay the
effectiveness of the Uniform Standard in that State. The Commission may grant a
stay if it determines the regulatory opt out is being pursued in a reasonable
manner and there is a likelihood of success. If a stay is granted or extended by
the Commission, the stay or extension thereof may postpone the effective date by
up to 90 days, unless affirmatively extended by the Commission; provided, a stay
may not be permitted to remain in effect for more than one year unless the
Compacting State can show extraordinary circumstances which warrant a
continuance of the stay, including, but not limited to, the existence of a legal
challenge which prevents the Compacting State from opting out. A stay may be
terminated by the Commission upon notice that the rulemaking process has been
terminated.

7. Not later than 30 days after a Rule or Operating Procedure is promulgated,
any person may file a petition for judicial review of the Rule or Operating
Procedure; provided, that the filing of such a petition shall not stay or
otherwise prevent the Rule or Operating Procedure from becoming effective unless
the court finds that the petitioner has a substantial likelihood of success. The
court shall give deference to the actions of the Commission consistent with
applicable law and shall not find the Rule or Operating Procedure to be unlawful
if the Rule or Operating Procedure represents a reasonable exercise of the
Commission&#8217;s authority.
			Article VIII.
			Commission Records and Enforcement.

1. The Commission shall promulgate Rules establishing conditions and procedures
for public inspection and copying of its information and official records,
except such information and records involving the privacy of individuals and
insurers&#8217; trade secrets. The Commission may promulgate additional Rules
under which it may make available to federal and state agencies, including
law-enforcement agencies, records and information otherwise exempt from
disclosure, and may enter into agreements with such agencies to receive or
exchange information or records subject to nondisclosure and confidentiality
provisions.

2. Except as to privileged records, data and information, the laws of any
Compacting State pertaining to confidentiality or nondisclosure shall not
relieve any Compacting State Commissioner of the duty to disclose any relevant
records, data, or information to the Commission; provided, that disclosure to
the Commission shall not be deemed to waive or otherwise affect any
confidentiality requirement; and further provided, that, except as otherwise
expressly provided in this Act, the Commission shall not be subject to the
Compacting State&#8217;s laws pertaining to confidentiality and nondisclosure
with respect to records, data, and information in its possession. Confidential
information of the Commission shall remain confidential after such information
is provided to any Commissioner.

3. The Commission shall monitor Compacting States for compliance with duly
adopted Bylaws, Rules, including Uniform Standards, and Operating Procedures.
The Commission shall notify any non-complying Compacting State in writing of its
noncompliance with Commission Bylaws, Rules or Operating Procedures. If a
noncomplying Compacting State fails to remedy its noncompliance within the time
specified in the notice of noncompliance, the Compacting State shall be deemed
to be in default as set forth in Article XIV.

4. The Commissioner of any State in which an Insurer is authorized to do
business, or is conducting the business of insurance, shall continue to exercise
his or her authority to oversee the market regulation of the activities of the
Insurer in accordance with the provisions of the State&#8217;s law. The
Commissioner&#8217;s enforcement of compliance with the Compact is governed by
the following provisions:
			a. With respect to the Commissioner&#8217;s market regulation of a Product or
Advertisement that is approved or certified to the Commission, the content of
the Product or Advertisement shall not constitute a violation of the provisions,
standards or requirements of the Compact except upon a final order of the
Commission, issued at the request of a Commissioner after prior notice to the
Insurer and an opportunity for hearing before the Commission.
			b. Before a Commissioner may bring an action for violation of any provision,
standard or requirement of the Compact relating to the content of an
Advertisement not approved or certified to the Commission, the Commission, or an
authorized Commission officer or employee, must authorize the action. However,
authorization pursuant to this paragraph does not require notice to the Insurer,
opportunity for hearing or disclosure of requests for authorization or records
of the Commission&#8217;s action on such requests.
			Article IX.
			Dispute Resolution.
			The Commission shall attempt, upon the request of a Member, to resolve any
disputes or other issues that are subject to this Compact and which may arise
between two or more Compacting States, or between Compacting States and
Non-compacting States, and the Commission shall promulgate an Operating
Procedure providing for resolution of such disputes.
			Article X.
			Product Filing and Approval.

1. Insurers and Third-Party Filers seeking to have a Product approved by the
Commission shall file the Product with, and pay applicable filing fees to, the
Commission. Nothing in this Act shall be construed to restrict or otherwise
prevent an insurer from filing its Product with the insurance department in any
State wherein the insurer is licensed to conduct the business of insurance, and
such filing shall be subject to the laws of the States where filed.

2. The Commission shall establish appropriate filing and review processes and
procedures pursuant to Commission Rules and Operating Procedures.
Notwithstanding any provision herein to the contrary, the Commission shall
promulgate Rules to establish conditions and procedures under which the
Commission will provide public access to Product filing information. In
establishing such Rules, the Commission shall consider the interests of the
public in having access to such information, as well as protection of personal
medical and financial information and trade secrets, that may be contained in a
Product filing or supporting information.

3. Any Product approved by the Commission may be sold or otherwise issued in
those Compacting States for which the Insurer is legally authorized to do
business.
			Article XI.
			Review of Commission Decisions Regarding Filings.

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

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

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

2. The Commission shall collect a filing fee from each Insurer and Third Party
Filer filing a Product with the Commission to cover the cost of the operations
and activities of the Commission and its staff in a total amount sufficient to
cover the Commission&#8217;s annual budget.

3. The Commission&#8217;s budget for a fiscal year shall not be approved until
it has been subject to notice and comment as set forth in Article VII of this
Compact.

4. The Commission shall be exempt from all taxation in and by the Compacting
States.

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

6. The Commission shall keep complete and accurate accounts of all its internal
receipts, including grants and donations, and disbursements of all funds under
its control. The internal financial accounts of the Commission shall be subject
to the accounting procedures established under its Bylaws. The financial
accounts and reports including the system of internal controls and procedures of
the Commission shall be audited annually by an independent certified public
accountant. Upon the determination of the Commission, but no less frequently
than every three years, the review of the independent auditor shall include a
management and performance audit of the Commission. The Commission shall make an
Annual Report to the Governor and legislature of the Compacting States, which
shall include a report of the independent audit. The Commission&#8217;s internal
accounts shall not be confidential and such materials may be shared with the
Commissioner of any Compacting State upon request; provided, however, that any
work papers related to any internal or independent audit and any information
regarding the privacy of individuals and insurers&#8217; proprietary
information, including trade secrets, shall remain confidential.

7. No Compacting State shall have any claim to or ownership of any property held
by or vested in the Commission or to any Commission funds held pursuant to the
provisions of this Compact.
			Article XIII.
			Compacting States, Effective Date and Amendment.

1. Any State is eligible to become a Compacting State.

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

3. Amendments to the Compact may be proposed by the Commission for enactment by
the Compacting States. No amendment shall become effective and binding upon the
Commission and the Compacting States unless and until all Compacting States
enact the amendment into law.
			Article XIV.
			Withdrawal, Default and Termination.

1. Withdrawal.
			a. Once effective, the Compact shall continue in force and remain binding
upon each and every Compacting State; provided, that a Compacting State may
withdraw from the Compact (Withdrawing State) by enacting a statute specifically
repealing the statute which enacted the Compact into law.
			b. The effective date of withdrawal is the effective date of the repealing
statute. However, the withdrawal shall not apply to any Product filings approved
or self-certified, or any Advertisement of such Products, on the date the
repealing statute becomes effective, except by mutual agreement of the
Commission and the Withdrawing State unless the approval is rescinded by the
Withdrawing State as provided in subsection e of this section.
			c. The Commissioner of the Withdrawing State shall immediately notify the
Management Committee in writing upon the introduction of legislation repealing
this Compact in the Withdrawing State.
			d. The Commission shall notify the other Compacting States of the
introduction of such legislation within 10 days after its receipt of notice
thereof.
			e. The Withdrawing State is responsible for all obligations, duties and
liabilities incurred through the effective date of withdrawal, including any
obligations, the performance of which extend beyond the effective date of
withdrawal, except to the extent those obligations may have been released or
relinquished by mutual agreement of the Commission and the Withdrawing State.
The Commission&#8217;s approval of Products and Advertisement prior to the
effective date of withdrawal shall continue to be effective and be given full
force and effect in the Withdrawing State, unless formally rescinded by the
Withdrawing State in the same manner as provided by the laws of the Withdrawing
State for the prospective disapproval of Products or Advertisement previously
approved under State law.
			f. Reinstatement following withdrawal of any Compacting State shall occur
upon the effective date of the Withdrawing State reenacting the Compact.

2. Default.
			a. If the Commission determines that any Compacting State has at any time
defaulted (Defaulting State) in the performance of any of its obligations or
responsibilities under this Compact, the Bylaws or duly promulgated Rules or
Operating Procedures, then, after notice and hearing as set forth in the Bylaws,
all rights, privileges and benefits conferred by this Compact on the Defaulting
State shall be suspended from the effective date of default as fixed by the
Commission. The grounds for default include, but are not limited to, failure of
a Compacting State to perform its obligations or responsibilities, and any other
grounds designated in Commission Rules. The Commission shall immediately notify
the Defaulting State in writing of the Defaulting State&#8217;s suspension
pending a cure of the default. The Commission shall stipulate the conditions and
the time period within which the Defaulting State must cure its default. If the
Defaulting State fails to cure the default within the time period specified by
the Commission, the Defaulting State shall be terminated from the Compact and
all rights, privileges and benefits conferred by this Compact shall be
terminated from the effective date of termination.
			b. Product approvals by the Commission or Product self-certifications, or any
Advertisement in connection with such Product, that are in force on the
effective date of termination shall remain in force in the Defaulting State in
the same manner as if the Defaulting State had withdrawn voluntarily pursuant to
paragraph 1 of this Article.
			c. Reinstatement following termination of any Compacting State requires a
reenactment of the Compact.

3. Dissolution of Compact.
			a. The Compact dissolves effective upon the date of the withdrawal or default
of the Compacting State which reduces membership in the Compact to one
Compacting State.
			b. Upon the dissolution of this Compact, the Compact becomes null and void
and shall be of no further force or effect, and the business and affairs of the
Commission shall be wound up and any surplus funds shall be distributed in
accordance with the Bylaws.
			Article XV.
			Severability and Construction.

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

2. The provisions of this Compact shall be liberally construed to effectuate its
purposes.
			Article XVI.
			Binding Effect of Compact and Other Laws.

1. Other Laws.
			a. Nothing herein prevents the enforcement of any other law of a Compacting
State, except as provided in paragraph b of this Article.
			b. For any Product approved or certified to the Commission, the Rules,
Uniform Standards, and any other requirements of the Commission shall constitute
the exclusive provisions applicable to the content, approval and certification
of such Products. For Advertisement that is subject to the Commission&#8217;s
authority, any Rule, Uniform Standard or other requirement of the Commission
which governs the content of the Advertisement shall constitute the exclusive
provision that a Commissioner may apply to the content of the Advertisement.
Notwithstanding the foregoing, no action taken by the Commission shall abrogate
or restrict: (i) the access of any person to State courts; (ii) remedies
available under State law related to breach of contract, tort, or other laws not
specifically directed to the content of the Product; (iii) State law relating to
the construction of insurance contracts; or (iv) the authority of the attorney
general of the State, including but not limited to maintaining any actions or
proceedings, as authorized by law.
			c. All insurance Products filed with individual States shall be subject to
the laws of those States.

2. Binding Effect of this Compact.
			a. All lawful actions of the Commission, including all Rules and Operating
Procedures promulgated by the Commission, are binding upon the Compacting
States.
			b. All agreements between the Commission and the Compacting States are
binding in accordance with their terms.
			c. Upon the request of a party to a conflict over the meaning or
interpretation of Commission actions, and upon a majority vote of the Compacting
States, the Commission may issue advisory opinions regarding the meaning or
interpretation in dispute.
			d. In the event any provision of this Compact exceeds the constitutional
limits imposed on the legislature of any Compacting State, the obligations,
duties, powers or jurisdiction sought to be conferred by that provision upon the
Commission shall be ineffective as to that Compacting State, and those
obligations, duties, powers or jurisdiction shall remain in the Compacting State
and shall be exercised by the agency thereof to which those obligations, duties,
powers or jurisdiction are delegated by law in effect at the time this Compact
becomes effective.

HISTORY: 2004, c. 761.