AB992,8,98 (h) To delegate its operating authority or functions; provided, that its
9rule-making authority under sub. (7) shall not be delegated.
AB992,8,1110 (i) To bring or prosecute legal proceedings or actions in its name as the
11commission, or in the name of the commission acting as receiver.
AB992,8,1412 (j) To bring or prosecute legal proceedings or actions as receiver on behalf of an
13estate or its policyholders and creditors; provided, that any guaranty association's
14standing to sue or be sued under applicable law shall not be affected.
AB992,8,1615 (jm) To issue subpoenas requiring the attendance and testimony of witnesses
16and the production of evidence.
AB992,8,1717 (k) To establish and maintain offices.
AB992,8,1818 (L) To purchase and maintain insurance and bonds.
AB992,8,2019 (m) To borrow, accept or contract for services of personnel, including, but not
20limited to, members and their staff.
AB992,8,2421 (n) To elect or appoint such officers, attorneys, employes or agents, and to fix
22their compensation, define their duties and determine their qualifications; and to
23establish the commission's personnel policies and programs relating to, among other
24things, conflicts of interest, rates of compensation and qualifications of personnel.
AB992,9,2
1(o) To accept any and all donations and grants of money, equipment, supplies,
2materials and services, and to receive, utilize and dispose of the same.
AB992,9,43 (p) To lease, purchase, accept gifts or donations of, or otherwise to own, hold,
4improve or use, any property, real, personal or mixed.
AB992,9,65 (pm) To sell, convey, mortgage, pledge, lease, exchange, abandon or otherwise
6dispose of any property, real, personal or mixed.
AB992,9,87 (q) To enforce compliance with commission rules, operating procedures and
8bylaws.
AB992,9,99 (r) To provide for dispute resolution among compacting states and receivers.
AB992,9,1210 (s) To represent and advise compacting states on issues relating to insurers
11domiciled or doing business in noncompacting jurisdictions, consistent with the
12purposes of this compact.
AB992,9,1513 (t) To provide advice and training to receivership personnel of compacting
14states, and to be a resource for compacting states by maintaining a reference library
15of relevant materials.
AB992,9,1616 (u) To establish a budget and make expenditures.
AB992,9,1717 (v) To borrow money.
AB992,9,1918 (w) To appoint committees including, but not limited to, an industry advisory
19committee and an executive committee of members.
AB992,9,2120 (x) To provide and receive information relating to receiverships and guaranty
21associations, and to cooperate with law enforcement agencies.
AB992,9,2222 (y) To adopt and use a corporate seal.
AB992,9,2523 (z) To perform such other functions as may be necessary or appropriate to
24achieve the purposes of this compact as may be consistent with the state regulation
25of the business of insurance pursuant to the McCarran-Ferguson act.
AB992,10,6
1(5) Article V — Organization of the Commission. (a) Each compacting state
2shall have one member. Each member shall be qualified to serve in such capacity
3under the applicable law of the compacting state. Each compacting state retains the
4discretionary right to determine the due election or appointment and qualification
5of its own commissioner, and to fill all vacancies of its member. Each member shall
6be entitled to one vote.
AB992,10,97 (b) The commission shall, by a majority of the members, prescribe bylaws to
8govern its conduct as may be necessary or appropriate to carry out the purposes of
9the compact, including, but not limited to, all of the following:
AB992,10,1010 1. Establishing the fiscal year of the commission.
AB992,10,1311 2. Providing reasonable standards and procedures for the establishment of
12committees and governing any general or specific delegation of any authority or
13function of the commission.
AB992,10,1514 3. Providing reasonable procedures for calling and conducting meetings of the
15commission, and ensuring reasonable notice of each such meeting.
AB992,10,1616 4. Establishing the titles and responsibilities of the officers of the commission.
AB992,10,2017 5. Providing reasonable standards and procedures for the establishment of the
18personnel policies and programs of the commission. Notwithstanding any civil
19service or other similar laws of any compacting state, the bylaws shall exclusively
20govern the personnel policies and programs of the commission.
AB992,10,2321 6. Providing a mechanism for winding up the operations of the commission and
22the equitable return of any surplus funds that may exist after the dissolution of the
23compact after the payment or reserving of all of its debts and obligations.
AB992,11,724 (c) The commission shall, by a majority of the members, elect annually from
25among its members a chairperson and a vice chairperson, each of whom shall have

1such authorities and duties as may be specified in the bylaws. The chairperson or,
2in his or her absence or disability, a member designated in accordance with the
3bylaws, shall preside at all meetings of the commission. The officers so elected shall
4serve without compensation or remuneration from the commission; provided that,
5subject to the availability of budgeted funds, the officers shall be reimbursed for any
6actual and necessary costs and expenses incurred by them in the performance of
7their duties and responsibilities as officers of the commission.
AB992,11,138 (d) The commission may, by a majority of the members, appoint or retain an
9executive director for such period, upon such terms and conditions and for such
10compensation as the commission determines appropriate. The executive director
11shall serve as secretary to the commission, but shall not be a member of the
12commission. The executive director shall hire and supervise such other staff as may
13be authorized by the commission.
AB992,11,1514 (e) The commission shall maintain its corporate books and records in
15accordance with the bylaws.
AB992,11,2516 (f) The members, officers, executive director and employes of the commission
17shall be immune from suit and liability, either personally or in their official capacity,
18for any claim for damage to or loss of property or personal injury or other civil liability
19caused or arising out of or relating to any actual or alleged act, error or omission that
20occurred, or that such person had a reasonable basis for believing occurred within
21the scope of commission employment, duties or responsibilities; provided, that
22nothing in this paragraph shall be construed to protect any such person from suit or
23liability for any damage, loss, injury or liability caused by the intentional or wilful
24and wanton misconduct of any such person, or to protect the commission acting as
25receiver under sub. (9).
AB992,12,8
1(g) The commission shall defend any commissioner of a compacting state, or his
2or her representatives or employes, or the commission's representatives or employes,
3in any civil action seeking to impose liability, arising out of or relating to any actual
4or alleged act, error or omission that occurred within the scope of commission
5employment, duties or responsibilities, or that such person had a reasonable basis
6for believing occurred within the scope of commission employment, duties or
7responsibilities; provided, that the actual or alleged act, error or omission did not
8result from gross negligence or intentional wrongdoing on the part of such person.
AB992,12,179 (h) The commission shall indemnify and hold the commissioner of a compacting
10state, or his or her representatives or employes, or the commission's representatives
11or employes, harmless in the amount of any settlement or judgment obtained against
12such person arising out of or relating to any actual or alleged act, error or omission
13that occurred within the scope of commission employment, duties or responsibilities,
14or that such person had a reasonable basis for believing occurred within the scope
15of commission employment, duties or responsibilities; provided, that the actual or
16alleged act, error or omission did not result from gross negligence or intentional
17wrongdoing on the part of such person.
AB992,12,2118 (i) The costs and expenses of defense and indemnification of the commission
19acting as receiver of an estate shall be paid as administrative expenses from the
20assets of that estate unless such costs and expenses are covered by insurance
21maintained by the commission.
AB992,12,24 22(6) Article VI — Meetings and Acts of the Commission. (a) The commission
23shall meet and take such actions as are consistent with the provisions of this
24compact.
AB992,13,4
1(b) Except as otherwise provided in this compact and unless a greater
2percentage is required by the bylaws, in order to constitute an act of the commission,
3such act shall have been taken at a meeting of the commission and shall have
4received an affirmative vote of a majority of the members.
AB992,13,95 (c) Each member of the commission shall have the right and power to cast a vote
6to which that compacting state is entitled and to participate in the business and
7affairs of the commission. A member shall vote in person and may not delegate his
8or her vote to another member. The bylaws may provide for members' participation
9in meetings by telephone or other means of telecommunication.
AB992,13,1210 (d) The commission shall meet at least once during each calendar year. The
11chairperson of the commission may call additional meetings at any time and, upon
12the request of a majority of the members, shall call additional meetings.
AB992,13,2413 (e) The commission's rules shall establish conditions and procedures under
14which the commission shall make its information and official records available to the
15public for inspection or copying. The commission may exempt from disclosure any
16information or official records to the extent disclosure would adversely affect
17personal privacy rights or proprietary interests. In promulgating such rules, the
18commission may consider any special circumstances pertaining to insurer
19insolvencies, but shall be guided by the principles embodied in state and federal
20freedom of information laws. The commission may promulgate additional rules
21under which it may make available to law enforcement agencies records and
22information otherwise exempt from disclosure, and may enter into agreements with
23law enforcement agencies to receive or exchange information or records subject to
24nondisclosure and confidentiality provisions.
AB992,14,6
1(f) Public notice shall be given of all meetings and all meetings shall be open
2to the public, except as set forth in the rules or as otherwise provided in this compact.
3The commission shall promulgate rules consistent with the principles contained in
4the government in sunshine act, 5 USC 552b. The commission and any of its
5committees may close a meeting to the public if it determines by two-thirds vote that
6an open meeting would likely do any of the following:
AB992,14,87 1. Relate solely to the commission's internal personnel practices and
8procedures.
AB992,14,99 2. Disclose matters specifically exempted from disclosure by statute.
AB992,14,1110 3. Disclose trade secrets or commercial or financial information which is
11privileged or confidential.
AB992,14,1212 4. Involve accusing any person of a crime or formally censuring any person.
AB992,14,1413 5. Disclose information of a personal nature where disclosure would constitute
14a clearly unwarranted invasion of personal privacy.
AB992,14,1515 6. Disclose investigatory records compiled for law enforcement purposes.
AB992,14,1916 7. Disclose information contained in or related to examination, operating or
17condition reports prepared by, or on behalf or for the use of, the commission with
18respect to a regulated entity for the purpose of regulation or supervision of such
19entity.
AB992,14,2120 8. Disclose information, the premature disclosure of which would significantly
21endanger the stability of a regulated entity.
AB992,14,2322 9. Specifically relate to the commission's issuance of a subpoena or its
23participation in a civil action or proceeding.
AB992,15,724 (g) For every meeting closed under par. (f), the commission's chief legal officer
25shall publicly certify that, in his or her opinion, the meeting may be closed to the

1public, and shall reference each relevant exemptive provision. The commission shall
2keep minutes which shall fully and clearly describe all matters discussed in any
3meeting and shall provide a full and accurate summary of any actions taken, and the
4reasons therefor, including a description of each of the views expressed on any item
5and the record of any rollcall vote, reflected in the vote of each member on the
6question. All documents considered in connection with any action shall be identified
7in the minutes.
AB992,15,11 8(7) Article VII — Rule-making Functions of the Commission. (a) The
9commission shall promulgate rules and operating procedures in order to effectively
10and efficiently achieve the purposes of this compact; provided, that the commission
11shall not promulgate any rules that do any of the following:
AB992,15,1312 1. Alter the statutory priorities for distributing assets out of an estate, except
13pursuant to rules promulgated under par. (c).
AB992,15,1714 2. Directly relate to guaranty associations, including but not limited to rules
15governing coverage, funding or assessment mechanisms. It is the intent of this
16compact that the commission not promulgate any rules that regulate, restrict or
17otherwise affect the operations of guaranty associations.
AB992,15,2218 (b) Rule making shall occur according to the criteria set forth in this subsection
19and the rules and operating procedures promulgated pursuant thereto. Such rule
20making shall substantially conform to the principles of the federal administrative
21procedure act, 5 USCS 551, et seq., and the federal advisory committee act, 5 USCS
22app. 2, section 1, et seq.
AB992,16,623 (c) Other than the promulgation of such rules as are necessary for the orderly
24operation of the commission, the first rule to be considered by the commission shall
25be uniform provisions governing insurer receiverships including, but not limited to,

1provisions requiring compacting states to implement, execute and administer in a
2fair, just, effective and efficient manner rules and operating procedures relating to
3receiverships. The commission shall, within 3 years after the adoption of this
4compact by 2 or more states, promulgate such uniform provisions through the
5rule-making process. Such uniform provisions shall become law in all of the
6compacting states upon legislative enactment in a majority of the compacting states.
AB992,16,137 (d) All rules and amendments shall become binding as of the date specified in
8the rule or amendment; provided, that if a compacting state expressly rejects a rule
9or amendment through legislative enactment as of the expiration of the 2nd full
10calendar year after the rule is promulgated, the rule or amendment shall have no
11further force or effect in the rejecting compacting state. If a majority of compacting
12states reject a rule, then the rule shall have no further force or effect in any
13compacting state.
AB992,16,1514 (e) When promulgating a rule or operating procedure, the commission shall do
15all of the following:
AB992,16,1816 1. Publish the proposed rule or operating procedure, stating with particularity
17the text of the rule or operating procedure which is proposed and the reason for the
18proposed rule or operating procedure.
AB992,16,2019 2. Allow persons to submit written data, facts, opinions and arguments, which
20information the commission shall make publicly available.
AB992,16,2121 3. Provide an opportunity for an informal hearing.
AB992,16,2322 4. Promulgate a final rule or operating procedure and its effective date, if
23appropriate, based on the rule-making record.
AB992,17,424 (f) Not later than 60 days after a rule or operating procedure is promulgated,
25any interested person may file a petition in a court of competent jurisdiction where

1the commission's principal office is located for judicial review of the rule or operating
2procedure. If the court finds that the commission's action is not supported by
3substantial evidence in the rule-making record, the court shall hold the rule
4unlawful and set it aside.
AB992,17,8 5(8) Article VIII — Oversight and Dispute Resolution by the Commission. (a)
6The commission shall oversee the administration and operations of receiverships in
7compacting states, and shall monitor receiverships being administered in
8noncompacting states which may significantly affect compacting states.
AB992,17,119 (b) To aid its monitoring, oversight and coordination responsibilities, the
10commission shall establish operating procedures requiring each member to submit
11to the commission the following written reports:
AB992,17,1712 1. An initial report upon a finding or other official action by the compacting
13state that grounds exist for receivership of an insurer doing business in more than
14one state. Thereafter, reports shall be submitted periodically and as otherwise
15required pursuant to the commission's operating procedures. The commission shall
16be entitled to receive notice of, and shall have standing to appear in, compacting
17states' receiverships.
AB992,17,1918 2. An initial report of the status of an insurer within a reasonable time after
19the initiation of a receivership.
AB992,17,2520 (c) The commission shall promulgate operating procedures requiring receivers
21to submit to the commission periodic written reports and such additional
22information and documentation as the commission may reasonably request. Each
23compacting state's receivers shall establish the capability to obtain and provide all
24records, data and information required by the commission in accordance with the
25commission's operating procedures.
AB992,18,8
1(d) Except as to privileged records, data and information, the laws of any
2compacting state pertaining to confidentiality or nondisclosure shall not relieve any
3compacting state commissioner of the responsibility to disclose any relevant records,
4data or information to the commission; provided, that disclosure to the commission
5shall not be deemed to waive or otherwise affect any confidentiality requirement; and
6further provided, that the commission shall be subject to the compacting state's laws
7pertaining to confidentiality and nondisclosure with respect to all such records, data
8and information in its possession.
AB992,18,169 (e) The courts and executive agencies in each compacting state shall enforce
10this compact and shall take all actions necessary and appropriate to effectuate the
11compact's purposes and intent. In any receivership or other judicial or
12administrative proceeding in a compacting state pertaining to the subject matter of
13this compact which may affect the powers, responsibilities or actions of the
14commission, the commission shall be entitled to receive all service of process in any
15such proceeding, and shall have standing to intervene in the receivership or
16proceeding for all purposes.
AB992,18,2117 (f) The commission shall analyze and correlate records, data, information and
18reports received from receivers and guaranty associations, and shall make
19recommendations for improving their performance to the compacting states. The
20commission shall include summary information and data regarding its oversight
21functions in its annual report.
AB992,18,2422 (g) The commission shall attempt, upon the request of a member, to resolve any
23disputes or other issues which are subject to this compact and which may arise
24among compacting states and noncompacting states.
AB992,19,3
1(h) The compacting states shall report to the commission on issues or activities
2of concern to them, and cooperate with and support the commission in the discharge
3of its duties and responsibilities.
AB992,19,54 (i) The commission shall promulgate an operating procedure providing for
5binding dispute resolution for disputes among receivers.
AB992,19,76 (j) The commission shall facilitate voluntary dispute resolution for disputes
7among guaranty associations and receivers.
AB992,19,22 8(9) Article IX — Receivership Functions of the Commission. (a) The
9commission has authority to act as receiver of any insurer domiciled, engaged in or
10doing business in a compacting state upon the request of the commissioner of such
11compacting state, or as otherwise provided in this compact. As receiver, the
12commission shall have all powers and duties pursuant to the receivership laws of the
13domiciliary state. The commission shall maintain accounts of receipts and
14disbursements of the estates for which it is acting as receiver, consistent with the
15accounting practices and procedures set forth in the bylaws. The commission shall
16cause an annual audit of each estate for which it is acting as receiver to be conducted
17by an independent certified public accountant. The costs and expenses of such audit
18shall be paid as administrative expenses from the assets of the estate. The
19commission may not cause an annual audit to be conducted of any estate which lacks
20sufficient assets to pay the costs and expenses of such audit. The commission as
21receiver may delegate its receivership duties and functions, and may contract with
22others for that purpose.
AB992,20,623 (b) The commission shall act as receiver of any insurer domiciled or doing
24business in a compacting state in the event that the member acting as receiver in that
25compacting state fails to comply with duly promulgated commission rules or

1operating procedures. The commission shall notify the member in writing of his or
2her noncompliance with commission rules or operating procedures. If the member
3acting as receiver fails to remedy the noncompliance within 10 days after receipt of
4the notification, the commission may petition the supervising court before which the
5receivership is pending for an order substituting and appointing the commission as
6receiver of the estate.
AB992,20,107 (c) The commission may not act as receiver of an estate that appears to lack
8sufficient assets to fund such receivership unless the compacting state makes
9provisions for the payment of the estate's administrative expenses satisfactory to the
10commission.
AB992,20,1311 (d) The commission may act as deputy receiver for any insurer domiciled or
12doing business in a noncompacting state in accordance with that state's laws, upon
13request of that noncompacting state's commissioner and approval of the commission.
AB992,20,1514 (e) With respect to receiverships pending in a compacting state on the effective
15date of this paragraph .... [revisor inserts date], all of the following apply:
AB992,20,1716 1. The commission may act as receiver of an insurer upon the request of that
17compacting state's member and approval of the commission.
AB992,20,2018 2. The commission shall oversee, monitor and coordinate the activities of all
19receiverships pending in that compacting state regardless of whether the
20commission is acting as receiver of estates in that state.
AB992,20,22 21(10) Article X — Finance. (a) The commission shall pay or provide for the
22payment of the reasonable expenses of its establishment and organization.
AB992,21,223 (b) Except as otherwise provided in this compact or by act of the commission,
24the costs and expenses of each compacting state shall be the sole and exclusive
25responsibility of the respective compacting state. The commission may pay or

1provide for actual and necessary costs and expenses for attendance of its members
2at official meetings of the commission or its designated committees.
AB992,21,73 (c) The commission shall levy on and collect an annual assessment from each
4compacting state and each insurer authorized to do business in a compacting state
5and writing direct insurance to cover the cost of the internal operations and activities
6of the commission and its staff in a total amount sufficient to cover the commission's
7annual budget. With respect to the assessments, all of the following apply:
AB992,21,238 1. The aggregate annual assessment amount shall be allocated 75% to insurers
9and 25% to compacting states. The insurers' portion shall be allocated to each
10insurer by the percentage derived from a fraction, the numerator of which shall be
11the gross direct written premium received on that insurer's business in all
12compacting states and the denominator of which shall be the gross direct written
13premium received by all insurers on business in all compacting states. The
14compacting states' portion shall be allocated to each compacting state by the
15percentage derived from a fraction, the numerator of which shall be the gross direct
16written premium received by all insurers on business in that compacting state and
17the denominator shall be the gross direct written premium received on all insurers
18on business in all compacting states. Each compacting state's portion shall be funded
19as designated by that state's legislature. In no event shall an insurer's assessment
20be less than $50 or more than $25,000; provided, that affiliated insurers' combined
21assessments shall not exceed $50,000. Upon the request of an insurer, the
22commission may exempt or defer the assessment of any insurer, if such assessment
23would cause the insurer's financial impairment.
AB992,22,224 2. These assessments may not be used to pay any costs or expenses incurred
25by the commission and its staff acting as receiver of estates. Such costs and expenses

1shall be paid as administrative expenses from the assets of the estates as provided
2by law, except as otherwise provided in this compact.
AB992,22,113 3. Each insurer authorized to do business in a compacting state shall timely pay
4assessments to the commission. Failure to pay such assessments shall not be
5grounds for the revocation, suspension or denial of an insurer's authority to do
6business, but shall subject the insurer to suit by the commission for recovery of any
7assessment due, attorneys fees and costs, together with interest from the date the
8assessment is due at a rate of 10% per year, and to civil forfeiture in an amount to
9be determined by the commissioner of that compacting state in which the insurer
10received the greatest premium in the year next preceding the first year for which the
11insurer is delinquent in payment of assessments.
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