CHAPTER 31. INTERSTATE INSURANCE PRODUCT REGULATION COMPACT
IC 27-8-31
Chapter 31. Interstate Insurance Product Regulation Compact
IC 27-8-31-1
Purpose
Sec. 1. The purposes of this compact are, through means of joint
and cooperative action among the compacting states, to:
(1) promote and protect the interest of consumers of individual
and group annuity, life insurance, disability income, and long
term care insurance products;
(2) develop uniform standards for insurance products covered
under the compact;
(3) 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 (1) or more
compacting states;
(4) give appropriate regulatory approval to product filings and
advertisements satisfying the applicable uniform standard;
(5) 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) create the interstate insurance product regulation
commission; and
(7) perform these and any other related functions as may be
consistent with the state regulation of the business of insurance.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-2
Definitions
Sec. 2. (a) The definitions in this section apply throughout this
chapter.
(b) "Advertisement" means 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.
(c) "Bylaws" means bylaws established by the commission for the
governance, direction, or control of the commission.
(d) "Commission" refers to the interstate insurance product
regulation commission established by section 3 of this chapter.
(e) "Commissioner" means the chief insurance regulatory official
of a state, including a commissioner, a superintendent, a director, or
an administrator.
(f) "Compacting state" means a state that:
(1) has enacted this compact; and
(2) has not:
(A) withdrawn as provided in section 15 of this chapter; or
(B) been terminated as provided in section 16 of this chapter.
(g) "Domiciliary state" means the state in which an insurer is
incorporated or organized, or the state of entry of an alien insurer.
(h) "Insurer" means an entity licensed by a state to issue contracts
of insurance for the lines of insurance covered by this chapter.
(i) "Member" means the commissioner or the commissioner's
designee.
(j) "NAIC" refers to the National Association of Insurance
Commissioners.
(k) "Noncompacting state" means a state that is not a compacting
state.
(l) "Operating procedures" mean procedures adopted by the
commission to implement a rule, a uniform standard, or a provision
of this compact.
(m) "Opt out" means any action by a compacting state to decline
to adopt or participate in a promulgated uniform standard.
(n) "Product" means the form of a policy or contract, including an
application, an endorsement, or a related form that is attached to and
made a part of the policy or contract, and any evidence of coverage
or certificate, for an individual or a group annuity, life insurance,
disability income, or long term care insurance product that an insurer
is authorized to issue in Indiana or another compacting state.
(o) "Rule" means a statement of general or particular applicability
and future effect adopted by the commission, including a uniform
standard developed under section 8 of this chapter, that has the full
force and effect of law in the compacting states and:
(1) is designed to implement or interpret law or prescribe
policy; or
(2) describes the organization, procedure, or practice
requirements of the commission.
(p) "State" means a state, district, or territory of the United States.
(q) "Third party filer" means an entity that submits a product
filing to the commission on behalf of an insurer.
(r) "Uniform standard" means a standard adopted by the
commission for a product line under section 8 of this chapter. The
term includes all the product requirements. However:
(1) 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
(2) the form of the product made available to the public shall
not be unfair, inequitable, or against public policy as
determined by the commission.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-3
Interstate insurance product regulation commission
Sec. 3. (a) The compacting states hereby establish a joint public
agency known as the interstate insurance product regulation
commission. Under section 4 of this chapter, the commission may:
(1) develop uniform standards for product lines;
(2) receive and provide prompt review of products filed with the
commission; and
(3) give approval to product filings satisfying applicable
uniform standards.
However, it is not intended for the commission to be the exclusive
entity for receipt and review of insurance product filings. This
chapter does not prohibit an insurer from filing the insurer's product
in a state where the insurer is licensed to conduct the business of
insurance and any such filing is subject to the laws of the state where
filed.
(b) The commission is a body corporate and politic, and an
instrumentality of the compacting states.
(c) The commission is solely responsible for the commission's
liabilities except as otherwise specifically provided in this compact.
(d) Venue is proper, and judicial proceedings by or against the
commission shall be brought solely and exclusively, in a court with
jurisdiction where the principal office of the commission is located.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-4
Commission powers
Sec. 4. The commission has the following powers:
(1) To adopt rules under section 8 of this chapter, which shall
have the force and effect of law and are binding in the
compacting states to the extent and in the manner provided in
this compact.
(2) To exercise the commission's rulemaking authority and
establish reasonable uniform standards for products covered
under the compact and advertisement related to the products,
which shall have the force and effect of law and are binding in
the compacting states, but only for those products filed with the
commission. However, a compacting state has the right to opt
out of the uniform standard under section 8(d) of this chapter,
to the extent and in the manner provided in this compact, and
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 NAIC's 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 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 the approval shall have the force and
effect of law and is 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 has authority to require an insurer to submit all or
any part of the insurer's advertisement with respect to that
product for review or approval before use, if the commission
determines that the nature of the product is such that an
advertisement of the product could have the capacity or
tendency to mislead the public. The actions of the commission
as provided in this section shall have the force and effect of law
and are binding in the compacting states to the extent and in the
manner provided in the compact.
(5) To exercise the commission's rulemaking 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 adopt operating procedures under section 8 of this
chapter, which shall have the force and effect of law and are
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 the
commission's 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 employees of a compacting state.
(12) To hire employees, professionals, or specialists, elect or
appoint officers, and fix their compensation, define their duties,
give them appropriate authority to carry out the purposes of the
compact, determine their qualifications, and establish the
commission's personnel policies and programs relating to,
among other things, conflicts of interest, rates of compensation,
and qualifications of personnel.
(13) To accept any and all appropriate donations and grants of
money, equipment, supplies, materials, and services, and to
receive, use, and dispose of the same. 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. 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 noncompacting 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 any 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.
(26) To perform any 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.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-5
Commission members; action; bylaws
Sec. 5. (a) Each compacting state shall have and be limited to one
(1) member. Each member shall be qualified to serve in that capacity
under applicable law of the compacting state. Any member may be
removed or suspended from office as provided by the law of the state
from which the member is appointed. Any vacancy occurring in the
commission shall be filled in accordance with the laws of the
compacting state where the vacancy exists. Nothing in this section
shall be construed to affect the manner in which a compacting state
determines the election or appointment and qualification of the
compacting state's commissioner.
(b) Each member is entitled to one (1) vote and is entitled to an
opportunity to participate in the governance of the commission in
accordance with the bylaws. Notwithstanding any provision in this
chapter to the contrary, no action of the commission with respect to
the promulgation of a uniform standard is effective unless two-thirds
(2/3) of the members vote in favor of adoption.
(c) The commission shall, by a majority of the members, prescribe
bylaws to govern the commission's conduct as may be necessary or
appropriate to carry out the purposes and exercise the powers of the
compact, including the following:
(1) Establishing the fiscal year of the commission.
(2) Providing reasonable procedures for appointing and electing
members and holding meetings of the management committee.
(3) Providing reasonable standards and procedures:
(A) for the establishment and meetings of other committees;
and
(B) governing any general or specific delegation of any
authority or function of the commission.
(4) Providing reasonable procedures for calling and conducting
meetings of the commission and ensuring reasonable advance
notice of each meeting, including:
(A) requiring a majority of commission members to attend
a meeting;
(B) providing for the right of citizens to attend the meetings
with enumerated exceptions designed to:
(i) protect the public interest;
(ii) protect the privacy of individuals; and
(iii) insure proprietary information, including trade
secrets;
(C) allowing a meeting in camera only after a majority of the
members of the commission votes to close a meeting en toto
or in part, with no proxy voting; and
(D) providing for the commission, as soon as practicable
after a vote to close a meeting as described in clause (C), to
make public:
(i) a copy of the vote to close the meeting revealing the
vote of each member; and
(ii) votes taken during the meeting.
(5) Establishing the titles, duties, authority, and reasonable
procedures for the election of the officers of the commission.
(6) 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.
(7) Promulgating a code of ethics to address permissible and
prohibited activities of commission members and employees.
(8) Providing a mechanism for winding up the operations of the
commission and the equitable disposition of any surplus funds
that may exist after the termination of the compact after the
payment and reserving of all the commission's debts and
obligations.
(d) The commission shall publish bylaws in a convenient form
and file a copy of the bylaws and amendments to the bylaws with the
appropriate agency or officer in each compacting state.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-6
Management committee; legislative committee; liability
Sec. 6. (a) A management committee comprising not more than
fourteen (14) members shall be established as follows:
(1) One (1) member from each of the six (6) compacting states
with the largest premium volume for individual and group
annuities, life, disability income, and long term care insurance
products, determined from the records of the NAIC for the prior
year.
(2) Four (4) members from those compacting states with at least
two percent (2%) of the market based on the premium volume
described in subdivision (1), other than the six (6) compacting
states with the largest premium volume, selected on a rotating
basis as provided in the bylaws.
(3) Four (4) members from those compacting states with less
than two percent (2%) of the market, based on the premium
volume described in subdivision (1), with one (1) selected from
each of the four (4) zone regions of the NAIC as provided in the
bylaws.
(b) The management committee has the authority and duties as
may be set forth in the bylaws, including the following:
(1) Managing the affairs of the commission in a manner
consistent with the bylaws and purposes of the commission.
(2) 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.
However, a uniform standard shall not be submitted to the
compacting states for adoption unless approved by two-thirds
(2/3) of the members of the management committee.
(3) Overseeing the offices of the commission.
(4) Planning, implementing, and coordinating communications
and activities with other state, federal, and local government
organizations to advance the goals of the commission.
(c) The commission shall annually elect officers from the
management committee, with each having the 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 the
period, upon the terms and conditions and for the compensation as
the commission considers appropriate. The executive director shall
serve as secretary to the commission but may not be a member of the
commission. The executive director shall hire and supervise any
other staff as may be authorized by the commission.
(e) A legislative committee comprised of state legislators or state
legislators' designees shall be established to monitor the operations
of and make recommendations to the commission, including the
management committee. However, the manner of selection and term
of any legislative committee member shall be as set forth in the
bylaws. Before the commission adopts 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. The commission
shall establish two (2) advisory committees, one (1) of which shall
comprise consumer representatives independent of the insurance
industry and the other of which shall comprise insurance industry
representatives. The commission may establish additional advisory
committees as the commission's bylaws may provide for the carrying
out of the commission's functions.
(f) The commission shall maintain its corporate books and records
in accordance with the bylaws.
(g) The members, officers, executive director, employees, and
representatives of the commission are 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.
However, nothing in this subsection shall be construed to protect any
person from suit or liability for any damage, loss, injury, or liability
caused by the intentional or willful and wanton misconduct of the
person.
(h) 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. However:
(1) nothing in this subsection shall be construed to prohibit that
person from retaining the person's own counsel; and
(2) this subsection applies only if the actual or alleged act,
error, or omission did not result from the person's intentional or
willful and wanton misconduct.
(i) 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 the 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 the person had a
reasonable basis for believing occurred within the scope of
commission employment, duties, or responsibilities. However, this
subsection applies only if the actual or alleged act, error, or omission
did not result from the intentional or willful and wanton misconduct
of that person.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-7
Commission action
Sec. 7. (a) The commission shall meet and take any actions that
are consistent with this compact and the bylaws.
(b) Each member of the commission is entitled 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 other means as provided in the bylaws. The bylaws may
provide for members' participation in meetings by telephone or other
means of communication.
(c) The commission shall meet at least one (1) time during each
calendar year. Additional meetings shall be held as set forth in the
bylaws.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-8
Rules; uniform standards; opting out; judicial review
Sec. 8. (a) The commission shall adopt reasonable rules, including
uniform standards, and operating procedures in order to effectively
and efficiently achieve the purposes of this compact. However, if the
commission exercises the commission's rulemaking authority in a
manner that is beyond the scope of the purposes of this chapter or the
powers granted in this chapter, the action by the commission is
invalid and has no force and effect.
(b) Rules and operating procedures shall be made according to a
rulemaking process that substantially conforms to the principles of
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 committees in each
compacting state responsible for insurance issues of the
commission's intention to adopt the uniform standard. The
commission, in adopting a uniform standard, shall fully consider all
submitted materials and issue a concise explanation of the
commission's decision.
(c) A uniform standard becomes effective ninety (90) days after
the uniform standard's adoption by the commission or on a later date
as the commission may determine. However, a compacting state may
opt out of a uniform standard as provided in subsection (d). All other
rules and operating procedures and amendments to the other rules
and operating procedures become effective as of the date specified
in each rule, operating procedure, or amendment.
(d) A compacting state may opt out of a uniform standard, either
by legislation or by rule adopted by the insurance department under
the compacting state's administrative procedure act. If a compacting
state elects to opt out of a uniform standard by rule, the compacting
state must:
(1) give written notice to the commission not later than ten (10)
business days after the uniform standard is adopted or at the
time the state becomes a compacting state; and
(2) find that the uniform standard does not provide reasonable
protections to the citizens of the state, given the conditions in
the state. The commissioner shall make specific findings of fact
and conclusions of law, based on a preponderance of the
evidence, detailing the conditions in the state that warrant a
departure from the uniform standard and determining that the
uniform standard would not reasonably protect the citizens of
the state. The commissioner must balance, consider, and find
that the conditions in the state and needs of the citizens of the
state outweigh the following factors:
(A) 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
chapter.
(B) The presumption that a uniform standard adopted by the
commission provides reasonable protections to consumers of
the relevant product.
However, a compacting state may, at the time of the compacting
state's enactment of this compact, prospectively opt out of all
uniform standards involving long term care insurance products by
expressly providing for an opt out in the enacted compact, and the
opt out shall not be treated as a material variance in the offer or
acceptance of any state to participate in this compact. The opt out is
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 adopted.
(e) If a compacting state elects to opt out of a uniform standard,
the uniform standard remains applicable in the compacting state
electing to opt out until the time the opt out legislation is enacted 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 the state, the uniform standard shall have
no further force and effect in the 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 the state, the opt out shall have the same
prospective effect as provided under section 15 of this chapter for
withdrawals.
(f) If a compacting state has formally initiated the process of
opting out of a uniform standard by rule while the regulatory opt out
is pending, the compacting state may petition the commission, not
less than fifteen (15) days before the effective date of the uniform
standard, to stay the effectiveness of the uniform standard in the
compacting state. The commission may grant a stay if the
commission 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 may
postpone the effective date by not more than ninety (90) days, unless
the stay is extended by the commission. However, a stay may not be
permitted to remain in effect for more than one (1) year unless the
compacting state can show extraordinary circumstances that warrant
a continuance of the stay, including the existence of a legal challenge
that prevents the compacting state from opting out. A stay may be
terminated by the commission on notice that the rulemaking process
has been terminated.
(g) Not later than thirty (30) days after a rule or operating
procedure is adopted, any person may file a petition for judicial
review of the rule or operating procedure. However, the filing of a
petition shall not stay or otherwise prevent the rule or operating
procedure from becoming effective unless the court finds that the
petitioner has a substantial likelihood of success. The court shall give
deference to the actions of the commission consistent with applicable
law and shall not find the rule or operating procedure to be unlawful
if the rule or operating procedure represents a reasonable exercise of
the commission's authority.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-9
Commission information and records; disclosure; confidentiality;
compacting state compliance and oversight
Sec. 9. (a) The commission shall adopt rules establishing
conditions and procedures for public inspection and copying of the
commission's information and official records, except information
and records involving the privacy of individuals and trade secrets of
insurers. The commission may adopt additional rules under which
the commission 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 these agencies to receive or exchange information or records
subject to nondisclosure and confidentiality provisions.
(b) 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. However, disclosure to the commission shall not be
considered to waive or otherwise affect any confidentiality
requirement, and, except as otherwise expressly provided in this
chapter, the commission shall not be subject to the compacting state's
laws pertaining to confidentiality and nondisclosure with respect to
records, data, and information in the commission's possession.
Confidential information of the commission remains confidential
after the information is provided to any commissioner.
(c) The commission shall monitor compacting states for
compliance with duly adopted bylaws, rules, including uniform
standards, and operating procedures. The commission shall notify
any noncomplying compacting state in writing of the noncomplying
compacting state's noncompliance with commission bylaws, rules, or
operating procedures. If a noncomplying compacting state fails to
remedy the noncomplying compacting state's noncompliance within
the time specified in the notice of noncompliance, the compacting
state is considered to be in default as set forth in section 16 of this
chapter.
(d) 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 the commissioner's authority to oversee the
market regulation of the activities of the insurer in accordance with
the provisions of the state's law. The commissioner's enforcement of
compliance with the compact is governed by the following:
(1) With respect to the commissioner's market regulation of a
product or an advertisement that is approved or certified to the
commission, the content of the product or advertisement does
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.
(2) Before a commissioner may bring an action for violation of
a provision, standard, or requirement of the compact related 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 under this subdivision does not require:
(A) notice to the insurer;
(B) opportunity for hearing; or
(C) disclosure of:
(i) requests for authorization; or
(ii) records of the commission's action on a request
described in item (i).
As added by P.L.138-2005, SEC.3.
IC 27-8-31-10
Dispute resolution
Sec. 10. The commission shall attempt, upon the request of a
member, to resolve any disputes or other issues that are subject to
this compact and that may arise between two (2) or more compacting
states, or between compacting states and noncompacting states, and
the commission shall adopt an operating procedure providing for
resolution of any disputes.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-11
Product filing and approval
Sec. 11. (a) 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 chapter
restricts or otherwise prevents an insurer from filing the insurer's
product with the insurance department in any state where the insurer
is licensed to conduct the business of insurance, and the filing is
subject to the laws of the states where filed.
(b) The commission shall establish appropriate filing and review
processes and procedures under commission rules and operating
procedures. Notwithstanding any provision in this chapter to the
contrary, the commission shall adopt rules to establish conditions and
procedures under which the commission will provide public access
to product filing information. In establishing any rules, the
commission shall consider the interests of the public in having access
to the 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.
(c) Any product approved by the commission may be sold or
otherwise issued in the compacting states in which the insurer is
legally authorized to do business.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-12
Disapproval; appeal; monitoring
Sec. 12. (a) Not later than thirty (30) days after the commission
has given notice of a disapproved product or advertisement filed with
the commission, the insurer or third party filer whose filing was
disapproved may appeal the determination to a review panel
appointed by the commission. The commission shall adopt rules to
establish procedures for appointing the review panels and provide for
notice and hearing. An allegation that the commission, in
disapproving a product or an 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 section 3(e) of this
chapter.
(b) The commission shall 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. If appropriate, the commission may withdraw or modify the
commission's approval after proper notice and hearing, subject to the
appeal process in subsection (a).
As added by P.L.138-2005, SEC.3.
IC 27-8-31-13
Commission finances
Sec. 13. (a) The commission shall pay or provide for the payment
of the reasonable expenses of the commission's establishment and
organization. To fund the cost of the commission's initial operations,
the commission may accept contributions and other forms of funding
from the NAIC, 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 the commission's duties is not compromised.
(b) 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 the
commission's staff in an amount sufficient to cover the commission's
annual budget.
(c) The commission's budget for a fiscal year may not be approved
until the commission's budget has been subject to notice and
comment as set forth in section 8(b) of this chapter.
(d) The commission is exempt from all taxation in and by the
compacting states.
(e) The commission shall not pledge the credit of any compacting
state, except by and with the appropriate legal authority of that
compacting state.
(f) The commission shall keep complete and accurate accounts of
all the commission's internal receipts, including grants and donations,
and disbursements of all funds under the commission's control. The
internal financial accounts of the commission are subject to the
accounting procedures established under the commission's 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 not less frequently than every
three (3) years, the review of the independent auditor shall include
a management and performance audit of the commission. The
commission shall make an annual report, to the governor and
legislature of the compacting states, including a report of the
independent audit. The commission's internal accounts are not
confidential and such internal account materials may be shared with
the commissioner of any compacting state upon request. However,
work papers related to internal or independent audit and information
regarding the privacy of individuals and proprietary information of
insurers, including trade secrets, is confidential.
(g) 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 under the provisions of this compact.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-14
Effectiveness of compact; amendments
Sec. 14. (a) Any state is eligible to become a compacting state.
The compact becomes effective and binding upon legislative
enactment of the compact into law by two (2) compacting states.
However, the commission shall become effective for purposes of
adopting uniform standards for, reviewing, and giving approval or
disapproval of products filed with the commission that satisfy
applicable uniform standards only after twenty-six (26) states are
compacting states or, alternatively, by states representing greater
than forty percent (40%) of the premium volume for life insurance,
annuity, disability income, and long term care insurance products,
based on records of the NAIC for the prior year. Thereafter, it
becomes effective and binding as to any other compacting state upon
enactment of the compact into law by that state.
(b) Amendments to the compact may be proposed by the
commission for enactment by the compacting states. An amendment
does not become effective and binding upon the commission and the
compacting states unless and until all compacting states enact the
amendment into law.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-15
Withdrawal of compacting state; reinstatement
Sec. 15. (a) Once effective, the compact continues in force and
remains binding upon each compacting state. However, a compacting
state may withdraw from the compact by enacting a statute
specifically repealing the statute that enacted the compact into law.
(b) The effective date of withdrawal is the effective date of the
repealing statute. However, the withdrawal does not apply to any
product filings approved or self-certified, or any advertisement of
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).
(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 the legislation within ten (10) days after the
commission's receipt of notice of the introduction of the legislation.
(e) The withdrawing state is responsible for all obligations, duties,
and liabilities incurred through the effective date of withdrawal,
including any obligations, the performance of which extend beyond
the effective date of withdrawal, except to the extent those
obligations may have been released or relinquished by mutual
agreement of the commission and the withdrawing state. The
commission's approval of products and advertisement before 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
occurs on the effective date of the withdrawing state reenacting the
compact.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-16
Default of compacting state; reinstatement
Sec. 16. (a) If the commission determines that any compacting
state has at any time defaulted in the performance of any of the
compacting state's obligations or responsibilities under this compact,
the bylaws, or adopted rules or operating procedures, 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:
(1) failure of a compacting state to perform its obligations or
responsibilities; or
(2) any other grounds designated in commission rules.
The commission shall immediately notify the defaulting state in
writing of the defaulting state's suspension pending a cure of the
default. The commission shall stipulate the conditions and the period
within which the defaulting state must cure the defaulting state's
default. If the defaulting state fails to cure the default within the
period specified by the commission, the defaulting state shall be
terminated and the compact and all rights, privileges, and benefits
conferred by this compact shall be terminated on the effective date
of termination.
(b) Product approvals by the commission, product
self-certifications, or any advertisement in connection with the
product that is 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 under section 15 of this
chapter.
(c) Reinstatement following termination of any compacting state
requires a reenactment of the compact.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-17
Dissolution of compact
Sec. 17. The compact dissolves effective on the date of the
withdrawal or default of the compacting state that reduces
membership in the compact to one (1) compacting state. Upon the
dissolution of this compact, the compact is null and void and is 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.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-18
Severability
Sec. 18. The provisions of this compact are severable and if any
phrase, clause, sentence, or provision is considered unenforceable,
the remaining provisions of the compact are enforceable. The
provisions of this compact shall be liberally construed to effectuate
the compact's purposes.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-19
Effect on state law
Sec. 19. (a) Nothing in this chapter prevents the enforcement of
any other law of a compacting state, except as provided in subsection
(b).
(b) For a product approved or certified to the commission, the
rules, uniform standards, and any other requirements of the
commission constitute the exclusive provisions applicable to the
content, approval, and certification of the products. For an
advertisement that is subject to the commission's authority, any rule,
uniform standard, or other requirement of the commission that
governs the content of the advertisement constitutes the exclusive
provision that a commissioner may apply to the content of the
advertisement. However, no action taken by the commission shall
abrogate or restrict:
(1) the access of any person to state courts;
(2) remedies available under state law related to breach of
contract, tort, or other laws not specifically directed to the
content of the product;
(3) state law relating to the construction of insurance contracts;
or
(4) the authority of the attorney general of the state, including
maintaining actions or proceedings, as authorized by law.
(c) All insurance products filed with individual states are subject
to the laws of those states.
As added by P.L.138-2005, SEC.3.
IC 27-8-31-20
Commission actions and agreements; effect on compacting states;
constitutional violation
Sec. 20. (a) All lawful actions of the commission, including all
rules and operating procedures adopted by the commission, are
binding upon the compacting states.
(b) All agreements between the commission and the compacting
states are binding in accordance with the terms of the agreements.
(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) Any provision of this compact that violates the Constitution of
the State of Indiana is ineffective in Indiana.
As added by P.L.138-2005, SEC.3.