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21601.58 Interstate insurance product regulation compact. The interstate
22insurance product regulation compact is hereby enacted into law and entered into
23by this state with all other jurisdictions legally joining therein, in substantially the
24following form:
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1(1) Article I - Purposes. Through means of joint and cooperative action among
2the compacting states, the purposes of this compact include all of the following:
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(a) To promote and protect the interest of consumers of individual and group
4annuity, life insurance, disability income, and long-term care insurance products.
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(b) To develop uniform standards for insurance products covered under the
6compact.
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(c) To establish a central clearinghouse to receive and provide prompt review
8of insurance products covered under the compact and, in certain cases,
9advertisements related thereto, submitted by insurers authorized to do business in
10one or more compacting states.
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(d) To give appropriate regulatory approval to those product filings and
12advertisements satisfying the applicable uniform standard.
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(e) To improve coordination of regulatory resources and expertise between state
14insurance departments regarding the setting of uniform standards and review of
15insurance products covered under the compact.
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(f) To create the interstate insurance product regulation commission.
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(g) To perform these and such other related functions as may be consistent with
18the state regulation of the business of insurance.
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19(2) Article II - Definitions. In this compact:
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(a) "Advertisement" means any material designed to create public interest in
21a product or to induce the public to purchase, increase, modify, reinstate, borrow on,
22surrender, replace, or retain a policy, as more specifically defined in the rules and
23operating procedures of the commission.
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(b) "Bylaws" mean those bylaws established by the commission for its
25governance, or for directing or controlling the commission's actions or conduct.
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1(c) "Commission" means the interstate insurance product regulation
2commission established by this compact.
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(d) "Commissioner" means the chief insurance regulatory official of a state,
4including, but not limited to, commissioner, superintendent, director, or
5administrator.
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(e) "Compacting state" means any state that has enacted this compact
7legislation and that has not withdrawn under sub. (14) (a) or been terminated under
8sub. (14) (g).
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(f) "Domiciliary state" means the state in which an insurer is incorporated or
10organized; or, in the case of an alien insurer, its state of entry.
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(g) "Insurer" means any entity licensed by a state to issue contracts of
12insurance for any of the lines of insurance covered by this section.
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(h) "Member" means the person chosen by a compacting state as its
14representative to the commission, or his or her designee.
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(i) "Noncompacting state" means any state that is not at the time a compacting
16state.
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(j) "Operating procedures" mean procedures promulgated by the commission
18implementing a rule, a uniform standard, or a provision of this compact.
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(k) "Product" means the form of a policy or contract, including any application,
20endorsement, or related form that is attached to and made a part of the policy or
21contract, and any evidence of coverage or certificate, for an individual or group
22annuity, life insurance, disability income, or long-term care insurance product that
23an insurer is authorized to issue.
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(L) To hire employees, professionals, or specialists, and elect or appoint officers,
25and to fix their compensation, define their duties and give them appropriate
1authority to carry out the purposes of the compact, and determine their
2qualifications; and to establish the commission's personnel policies and programs
3relating to, among other things, conflicts of interest, rates of compensation, and
4qualifications of personnel.
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(m) "State" means any state, district, or territory of the United States of
6America.
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(n) "Third-party filer" means an entity that submits a product filing to the
8commission on behalf of an insurer.
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(o) "Uniform standard" means a standard adopted by the commission for a
10product line, pursuant to sub. (7), and shall include all of the product requirements
11in the aggregate; provided, that each uniform standard shall be construed, whether
12express or implied, to prohibit the use of any inconsistent, misleading, or ambiguous
13provisions in a product and the form of the product made available to the public shall
14not be unfair, inequitable, or against public policy as determined by the commission.
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15(3) Article III - Establishment of the Commission and Venue. The compacting
16states hereby create the interstate insurance product regulation commission.
17Pursuant to sub. (4), the commission will have the power to develop uniform
18standards for product lines, receive and provide prompt review of products filed
19therewith, and give approval to those product filings satisfying applicable uniform
20standards; provided, that it is not intended for the commission to be the exclusive
21entity for receipt and review of insurance product filings. Nothing herein shall
22prohibit any insurer from filing its product in any state wherein the insurer is
23licensed to conduct the business of insurance, and any such filing shall be subject to
24the laws of the state where filed. The commission is a body corporate and politic, and
25an instrumentality of the compacting states. The commission is solely responsible
1for its liabilities except as otherwise specifically provided in this compact. Venue is
2proper and judicial proceedings by or against the commission shall be brought solely
3and exclusively in a court of competent jurisdiction where the principal office of the
4commission is located.
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5(4) Article IV - Powers of the Commission. The commission shall have all of
6the following powers:
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(a) To promulgate rules, pursuant to sub. (7), which shall be binding in the
8compacting states to the extent and in the manner provided in this compact.
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(b) To exercise its rule-making authority and establish reasonable uniform
10standards for products covered under the compact, and advertisement related
11thereto, which shall have the force and effect of law and shall be binding in the
12compacting states, but only for those products filed with the commission; provided,
13that a compacting state shall have the right to opt out of such uniform standard
14pursuant to sub. (7), to the extent and in the manner provided in this compact; and
15provided further, that any uniform standard established by the commission for
16long-term care insurance products may provide the same or greater protections for
17consumers as, but shall not provide less than, those protections set forth in the
18National Association of Insurance Commissioners' Long-Term Care Insurance
19Model Act and Long-Term Care Insurance Model Regulation, respectively, adopted
20as of 2001. The commission shall consider whether any subsequent amendments to
21the National Association of Insurance Commissioners' Long-Term Care Insurance
22Model Act or Long-Term Care Insurance Model Regulation adopted by the National
23Association of Insurance Commissioners require amending of the uniform standards
24established by the commission for long-term care insurance products.
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1(c) To receive and review in an expeditious manner products filed with the
2commission, and rate filings for disability income and long-term care insurance
3products, and give approval of those products and rate filings that satisfy the
4applicable uniform standard, where such approval shall have the force and effect of
5law and be binding on the compacting states to the extent and in the manner
6provided in the compact.
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(d) To receive and review in an expeditious manner advertisement relating to
8long-term care insurance products for which uniform standards have been adopted
9by the commission, and give approval to all advertisement that satisfies the
10applicable uniform standard. For any product covered under this compact, other
11than long-term care insurance products, the commission shall have the authority to
12require an insurer to submit all or any part of its advertisement with respect to that
13product for review or approval prior to use, if the commission determines that the
14nature of the product is such that an advertisement of the product could have the
15capacity or tendency to mislead the public. The actions of the commission as
16provided in this subsection shall have the force and effect of law and shall be binding
17in the compacting states to the extent and in the manner provided in the compact.
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(e) To exercise its rule-making authority and designate products and
19advertisement that may be subject to a self-certification process without the need
20for prior approval by the commission.
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(f) To promulgate operating procedures, pursuant to sub. (7), that shall be
22binding in the compacting states to the extent and in the manner provided in this
23compact.
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1(g) To bring and prosecute legal proceedings or actions in its name as the
2commission; provided, that the standing of any state insurance department to sue
3or be sued under applicable law shall not be affected.
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(h) To issue subpoenas requiring the attendance and testimony of witnesses
5and the production of evidence.
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(i) To establish and maintain offices.
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(j) To purchase and maintain insurance and bonds.
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(k) To borrow, accept, or contract for services of personnel, including, but not
9limited to, employees of a compacting state.
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(L) To hire employees, professionals, or specialists, and elect or appoint officers,
11and to fix their compensation, define their duties and give them appropriate
12authority to carry out the purposes of the compact, and determine their
13qualifications; and to establish the commission's personnel policies and programs
14relating to, among other things, conflicts of interest, rates of compensation, and
15qualifications of personnel.
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(m) To accept any and all appropriate donations and grants of money,
17equipment, supplies, materials, and services, and to receive, utilize, and dispose of
18the same; provided, that at all times the commission shall strive to avoid any
19appearance of impropriety.
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(n) To lease, purchase, accept appropriate gifts or donations of, or otherwise
21own, hold, improve, or use, any property, real, personal, or mixed; provided, that at
22all times the commission shall strive to avoid any appearance of impropriety.
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(o) To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise
24dispose of any property, real, personal, or mixed.
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1(p) To remit filing fees to compacting states as may be set forth in the bylaws,
2rules, or operating procedures.
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(q) To enforce compliance by compacting states with rules, uniform standards,
4operating procedures, and bylaws.
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(r) To provide for dispute resolution among compacting states.
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(s) To advise compacting states on issues relating to insurers domiciled or doing
7business in noncompacting jurisdictions, consistent with the purposes of this
8compact.
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(t) To provide advice and training to those personnel in state insurance
10departments responsible for product review, and to be a resource for state insurance
11departments.
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(u) To establish a budget and make expenditures.
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(v) To borrow money.
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(w) To appoint committees, including advisory committees comprising
15members, state insurance regulators, state legislators or their representatives,
16insurance industry and consumer representatives, and such other interested
17persons as may be designated in the bylaws.
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(x) To provide and receive information from, and to cooperate with, law
19enforcement agencies.
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(y) To adopt and use a corporate seal.
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(z) To perform such other functions as may be necessary or appropriate to
22achieve the purposes of this compact consistent with the state regulation of the
23business of insurance.
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24(5) Article V - Organization of the Commission. (a) Each compacting state
25shall have one member. Each member shall be qualified to serve in such capacity
1under the applicable law of the compacting state. Any member may be removed or
2suspended from office as provided by the law of the state from which he or she shall
3be appointed. Any vacancy occurring in the commission shall be filled in accordance
4with the laws of the compacting state wherein the vacancy exists. Nothing herein
5shall be construed to affect the manner in which a compacting state determines the
6election or appointment and qualification of its own commissioner.
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(b) Each member shall be entitled to one vote and shall have an opportunity
8to participate in the governance of the commission in accordance with the bylaws.
9Notwithstanding any provision herein to the contrary, no action of the commission
10with respect to the promulgation of a uniform standard shall be effective unless
11two-thirds of the members vote in favor thereof.
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(c) The commission shall, by a majority of the members, prescribe bylaws to
13govern its conduct as may be necessary or appropriate to carry out the purposes, and
14exercise the powers, of the compact, including, but not limited to:
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1. Establishing the fiscal year of the commission.
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2. Providing reasonable procedures for appointing and electing members, as
17well as holding meetings, of the management committee.
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3. Providing reasonable standards and procedures for all of the following:
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a. The establishment and meetings of other committees.
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b. Governing any general or specific delegation of any authority or function of
21the commission.
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4. Providing reasonable procedures for calling and conducting meetings of the
23commission that consist of a majority of commission members, ensuring reasonable
24advance notice of each such meeting, and providing for the right of citizens to attend
25each such meeting with enumerated exceptions designed to protect the public's
1interest, the privacy of individuals, and insurers' proprietary information, including
2trade secrets. The commission may meet in camera only after a majority of the entire
3membership votes to close a meeting en toto or in part. As soon as practicable, the
4commission must make public all of the following:
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a. A copy of the vote to close the meeting revealing the vote of each member with
6no proxy votes allowed.
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b. Votes taken during such meeting.
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5. Establishing the titles, duties, and authority, and reasonable procedures for
9the election, of the officers of the commission.
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6. Providing reasonable standards and procedures for the establishment of the
11personnel policies and programs of the commission. Notwithstanding any civil
12service or other similar laws of any compacting state, the bylaws shall exclusively
13govern the personnel policies and programs of the commission.
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7. Promulgating a code of ethics to address permissible and prohibited
15activities of commission members and employees.
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8. Providing a mechanism for winding up the operations of the commission and
17the equitable disposition of any surplus funds that may exist after the termination
18of the compact after the payment or reserving of all of its debts and obligations.
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(d) The commission shall publish its bylaws in a convenient form and file a copy
20thereof and a copy of any amendment thereto, with the appropriate agency or officer
21in each of the compacting states.
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(e) A management committee comprising no more than 14 members shall be
23established as follows:
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1. One member from each of the 6 compacting states with the largest premium
25volume for individual and group annuities, life insurance, disability income, and
1long-term care insurance products, determined from the records of the National
2Association of Insurance Commissioners for the prior year.
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2. Four members from those compacting states with at least 2 percent of the
4market based on the premium volume described in subd. 1., other than the 6
5compacting states with the largest premium volume, selected on a rotating basis as
6provided in the bylaws.
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3. Four members from those compacting states with less than 2 percent of the
8market, based on the premium volume described in subd. 1., with one selected from
9each of the 4 zone regions of the National Association of Insurance Commissioners
10as provided in the bylaws.
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(f) The management committee shall have such authority and duties as may
12be set forth in the bylaws, including, but not limited to, all of the following:
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1. Managing the affairs of the commission in a manner consistent with the
14bylaws and purposes of the commission.
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2. Establishing and overseeing an organizational structure within, and
16appropriate procedures for, the commission to provide for the creation of uniform
17standards and other rules, receipt and review of product filings, administrative and
18technical support functions, review of decisions regarding the disapproval of a
19product filing, and the review of elections made by a compacting state to opt out of
20a uniform standard; provided, that a uniform standard shall not be submitted to the
21compacting states for adoption unless approved by two-thirds of the members of the
22management committee.
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3. Overseeing the offices of the commission.
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14. Planning, implementing, and coordinating communications and activities
2with other state, federal, and local government organizations in order to advance the
3goals of the commission.
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(g) The commission shall elect annually officers from the management
5committee, with each having such authority and duties as may be specified in the
6bylaws.
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(h) The management committee may, subject to the approval of the commission,
8appoint or retain an executive director for such period, upon such terms and
9conditions, and for such compensation as the commission determines appropriate.
10The executive director shall serve as secretary to the commission, but may not be a
11member of the commission. The executive director shall hire and supervise such
12other staff as may be authorized by the commission.
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(i) A legislative committee comprising state legislators or their designees shall
14be established to monitor the operations of, and make recommendations to, the
15commission, including the management committee; provided, that the manner of
16selection and term of any legislative committee member shall be as set forth in the
17bylaws. Prior to the adoption by the commission of any uniform standard, revision
18to the bylaws, annual budget, or other significant matter as may be provided in the
19bylaws, the management committee shall consult with and report to the legislative
20committee.
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(j) The commission shall establish 2 advisory committees, one of which shall
22comprise consumer representatives independent of the insurance industry, and the
23other comprising insurance industry representatives.
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(k) The commission may establish additional advisory committees as its bylaws
25may provide for the carrying out of its functions.
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1(L) The commission shall maintain its corporate books and records in
2accordance with the bylaws.
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(m) The members, officers, executive director, employees, and representatives
4of the commission shall be immune from suit and liability, either personally or in
5their official capacity, for any claim for damage to or loss of property or personal
6injury or other civil liability caused by or arising out of or relating to any actual or
7alleged act, error, or omission that occurred, or that the person against whom the
8claim is made had a reasonable basis for believing occurred, within the scope of
9commission employment, duties, or responsibilities; provided, that nothing in this
10paragraph shall be construed to protect any such person from suit or liability for any
11damage, loss, injury, or liability caused by the intentional or willful and wanton
12misconduct of that person.
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(n) The commission shall defend any member, officer, executive director,
14employee, or representative of the commission in any civil action seeking to impose
15liability arising out of any actual or alleged act, error, or omission that occurred
16within the scope of commission employment, duties, or responsibilities, or that the
17person against whom the claim is made had a reasonable basis for believing occurred
18within the scope of commission employment, duties, or responsibilities; provided,
19that nothing herein shall be construed to prohibit that person from retaining his or
20her own counsel; and provided further, that the actual or alleged act, error, or
21omission did not result from that person's intentional or willful and wanton
22misconduct.
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(o) The commission shall indemnify and hold harmless any member, officer,
24executive director, employee, or representative of the commission for the amount of
25any settlement or judgment obtained against that person arising out of any actual
1or alleged act, error, or omission that occurred within the scope of commission
2employment, duties, or responsibilities, or that such person had a reasonable basis
3for believing occurred within the scope of commission employment, duties, or
4responsibilities; provided, that the actual or alleged act, error, or omission did not
5result from the intentional or willful and wanton misconduct of that person.
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(p) Section 893.80 does not apply to claims against the commission.
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7(6) Article VI - Meetings and Acts of the Commission. (a) The commission
8shall meet and take such actions as are consistent with the provisions of this compact
9and the bylaws.