601.58(8)(d)1.
1. With respect to the commissioner's market regulation of a product or advertisement that is approved by 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.
601.58(8)(d)2.
2. 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 by or certified to the commission, the commission, or an authorized commission officer or employee, must authorize the action. However, authorization pursuant to this subdivision does not require notice to the insurer, opportunity for hearing, or disclosure of requests for authorization or records of the commission's action on such requests.
601.58(9)
(9) 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 that may arise between 2 or more compacting states, or between compacting states and noncompacting states, and the commission shall promulgate an operating procedure providing for resolution of such disputes.
601.58(10)
(10) Article X - Product Filing and Approval. 601.58(10)(a)(a) Insurers and 3rd-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 section 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.
601.58(10)(b)
(b) 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.
601.58(10)(c)
(c) 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.
601.58(11)
(11) Article XI - Review of Commission Decisions Regarding Filings. 601.58(11)(a)(a) Not later than 30 days after the commission has given notice of a disapproved product or advertisement filed with the commission, the insurer or 3rd-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
sub. (3).
601.58(11)(b)
(b) 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
par. (a).
601.58(12)(a)(a) 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.
601.58(12)(b)
(b) The commission shall collect a filing fee from each insurer and 3rd-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's annual budget.
601.58(12)(c)
(c) The commission's budget for a fiscal year may not be approved until it has been subject to notice and comment as set forth in
sub. (7).
601.58(12)(d)
(d) The commission shall be exempt from all taxation in and by the compacting states.
601.58(12)(e)
(e) The commission may not pledge the credit of any compacting state, except by and with the appropriate legal authority of that compacting state.
601.58(12)(f)
(f) 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 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 each of the compacting states, which shall include a report of the independent audit. The commission's internal accounts shall not be confidential and such materials may be shared with the commissioner of any compacting state upon request; provided, that any work papers related to any internal or independent audit and any information regarding the privacy of individuals and insurers' proprietary information, including trade secrets, shall remain confidential.
601.58(12)(g)
(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 pursuant to the provisions of this compact.
601.58(13)
(13) Article XIII - Compacting States, Effective Date, and Amendment. 601.58(13)(a)(a) Any state is eligible to become a compacting state.
601.58(13)(b)
(b) The compact shall become effective and binding upon legislative enactment of the compact into law by 2 compacting states; provided, that 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, only after 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 National Association of Insurance Commissioners for the prior year, are compacting states. Thereafter, it shall become effective and binding as to any other compacting state upon enactment of the compact into law by that state.
601.58(13)(c)
(c) 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.
601.58(14)
(14) Article XIV - Withdrawal, Default, and Termination. 601.58(14)(a)(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 that enacted the compact into law.
601.58(14)(b)
(b) The effective date of withdrawal is the effective date of the repealing statute. 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
par. (e).
601.58(14)(c)
(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.
601.58(14)(d)
(d) The commission shall notify the other compacting states of the introduction of such legislation within 10 days after its receipt of notice thereof.
601.58(14)(e)
(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 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.
601.58(14)(f)
(f) Reinstatement following withdrawal of any compacting state shall occur upon the effective date of the withdrawing state reenacting the compact.
601.58(14)(g)
(g) 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'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.
601.58(14)(h)
(h) 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 under
par. (a).
601.58(14)(i)
(i) Reinstatement following termination of any compacting state requires a reenactment of the compact.
601.58(14)(j)
(j) The compact dissolves effective upon the date of the withdrawal or default of the compacting state that reduces membership in the compact to one compacting state.
601.58(14)(k)
(k) 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.
601.58(15)
(15) Article XV - Severability and Construction. 601.58(15)(a)(a) 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.
601.58(15)(b)
(b) The provisions of this compact shall be liberally construed to effectuate its purposes.
601.58(16)
(16) Article XVI - Binding Effect of Compact and Other Laws. 601.58(16)(a)(a) Nothing herein prevents the enforcement of any other law of a compacting state, except as provided in
par. (b).
601.58(16)(b)
(b) For any product approved by 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's authority, any rule, uniform standard, or other requirement of the commission that 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 any of the following:
601.58(16)(b)2.
2. Remedies available under state law related to breach of contract, tort, or other laws not specifically directed to the content of the product.
601.58(16)(b)3.
3. State law relating to the construction of insurance contracts.
601.58(16)(b)4.
4. The authority of the secretary of agriculture, trade and consumer protection or the attorney general of the state, including, but not limited to, maintaining any actions or proceedings, as authorized by law.
601.58(16)(c)
(c) All insurance products filed with individual states shall be subject to the laws of those states.
601.58(16)(d)
(d) All lawful actions of the commission, including all rules and operating procedures promulgated by the commission, are binding upon the compacting states. All agreements between the commission and the compacting states are binding in accordance with their terms. 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.
601.58(16)(e)
(e) 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 such obligations, duties, powers, or jurisdiction shall remain in the compacting state and shall be exercised by the agency thereof to which such obligations, duties, powers, or jurisdiction are delegated by law in effect at the time this compact becomes effective.
601.58 History
History: 2007 a. 168.
601.59
601.59
Interstate insurance receivership compact. The interstate insurance receivership compact is hereby enacted into law and entered into by this state with all other jurisdictions legally joining therein, in the form substantially as follows:
601.59(1)
(1) Article I — Purposes. Through means of joint and cooperative action among the compacting states, the purposes of this compact include all of the following:
601.59(1)(a)
(a) To promote, develop and facilitate orderly, efficient, cost-effective and uniform insurer receivership laws and operations.
601.59(1)(b)
(b) To coordinate interaction between insurer receivership and guaranty association operations.
601.59(1)(c)
(c) To create the interstate insurance receivership commission.
601.59(1)(d)
(d) To perform these and such other related functions as may be consistent with the state regulation of the business of insurance pursuant to the McCarran-Ferguson act.
601.59(2)
(2) Article II — Definitions. In this compact:
601.59(2)(a)
(a) "Bylaws" means those bylaws prescribed by the commission for its governance, or for directing or controlling the commission's actions or conduct.
601.59(2)(b)
(b) "Compacting state" means any state which has enacted enabling legislation for this compact.
601.59(2)(c)
(c) "Commission" means the interstate insurance receivership commission created by this compact.
601.59(2)(d)
(d) "Commissioner" means the chief insurance regulatory official of a state.
601.59(2)(e)
(e) "Deputy receiver" means any person appointed or retained by a receiver and who is the receiver's duly authorized representative for administering one or more estates.
601.59(2)(f)
(f) "Domiciliary state" means the state in which an insurer is incorporated or organized; or, in the case of an alien insurer, its state of entry; or, in the case of an unauthorized insurer not incorporated, organized, or entered in any state, a state where the insurer is engaged in or doing business.
601.59(2)(g)
(g) "Estate" means the assets and liabilities of any insurer in receivership.
601.59(2)(h)
(h) "Guaranty association" means an insurance guaranty fund or association or any similar entity now or hereafter created by statute in a compacting state, other than a receivership, to pay or assume, in whole or in part, the contractual claim obligations of insolvent insurers.
601.59(2)(i)
(i) "Insurer" means any person or entity that has done, purports to do, is doing or is licensed to do any insurance or reinsurance business, or that is or has been subject to the authority of, or to liquidation, rehabilitation, supervision, conservation or ancillary receivership by, any commissioner.
601.59(2)(j)
(j) "Member" means the commissioner of a compacting state or his or her designee, who shall be a person officially connected with the commissioner and who is wholly or principally employed by the commissioner.
601.59(2)(k)
(k) "Noncompacting state" means any state which has not enacted enabling legislation for this compact.
601.59(2)(L)
(L) "Operating procedures" means those procedures promulgated by the commission implementing a rule, an existing law in a compacting state or a provision of this compact.
601.59(2)(m)
(m) "Publication" means the act of publishing in the official state publication in a compacting state or in such other publication as may be established by the commission.
601.59(2)(n)
(n) "Receiver" means receiver, liquidator, rehabilitator, conservator or ancillary receiver as the context requires.
601.59(2)(o)
(o) "Receivership" means any liquidation, rehabilitation, conservation or ancillary receivership proceeding as the context requires.
601.59(2)(p)
(p) "Rules" means acts of the commission, duly promulgated pursuant to
sub. (7).
601.59(2)(q)
(q) "State" means any state, district or territory of the United States of America.
601.59(3)
(3) Article III — Establishment of the Commission and Venue. The compacting states hereby create the interstate insurance receivership commission. The commission is a body corporate of each compacting state. The commission is a not-for-profit entity, separate and distinct from the compacting states. The commission is solely responsible for its liabilities. Except as otherwise specifically provided in state or federal law in the jurisdiction where the commission's principal office is located or where the commission is acting as receiver, venue is proper, and judicial proceedings by or against the commission shall be brought, in a court of competent jurisdiction where the commission's principal office is located.
601.59(4)
(4) Article IV — Powers of the Commission. The commission shall have all of the following powers:
601.59(4)(b)
(b) To promulgate operating procedures which shall be binding in the compacting states to the extent and in the manner provided in this compact.
601.59(4)(c)
(c) To oversee, supervise and coordinate the activities of receivers in compacting states.
601.59(4)(d)
(d) To act as receiver of insurers organized under the laws of, engaged in or doing the business of insurance in, a compacting state upon the request of the commissioner of such state or when grounds for receivership by the commission exist under
sub. (9).
601.59(4)(e)
(e) To act as deputy receiver of insurers organized under the laws of, engaged in or dong the business of insurance in, a noncompacting state in accordance with
sub. (9).
601.59(4)(f)
(f) To act as ancillary receiver in a compacting state of an insurer domiciled in a noncompacting state.
601.59(4)(g)
(g) To monitor the activities and functions of guaranty associations in the compacting states.
601.59(4)(h)
(h) To delegate its operating authority or functions; provided, that its rule-making authority under
sub. (7) shall not be delegated.
601.59(4)(i)
(i) To bring or prosecute legal proceedings or actions in its name as the commission, or in the name of the commission acting as receiver.
601.59(4)(j)
(j) To bring or prosecute legal proceedings or actions as receiver on behalf of an estate or its policyholders and creditors; provided, that any guaranty association's standing to sue or be sued under applicable law shall not be affected.
601.59(4)(jm)
(jm) To issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence.
601.59(4)(L)
(L) To purchase and maintain insurance and bonds.
601.59(4)(m)
(m) To borrow, accept or contract for services of personnel, including, but not limited to, members and their staff.
601.59(4)(n)
(n) To elect or appoint such officers, attorneys, employees or agents, and to fix their compensation, define their duties and determine their qualifications; and to establish the commission's personnel policies and programs relating to, among other things, conflicts of interest, rates of compensation and qualifications of personnel.
601.59(4)(o)
(o) To accept any and all donations and grants of money, equipment, supplies, materials and services, and to receive, utilize and dispose of the same.
