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.
AB992,22,1512 (d) The commission shall be reimbursed in the following manner for the costs
13and expenses incurred by the commission and its staff acting as receiver of estates
14to the extent that an insurer's assets may be insufficient for the effective
15administration of its estate:
AB992,22,1716 1. If the insurer is domiciled in a compacting state, the estate shall be closed
17unless that compacting state makes provisions for reimbursing the commission.
AB992,22,2118 2. If the insurer is unauthorized to do business in a compacting state or if the
19insurer is domiciled in a noncompacting state and subject to ancillary receivership,
20the commission and such state shall make provisions for reimbursing the
21commission prior to the commission becoming receiver of such insurer.
AB992,23,222 (e) To fund the cost of the initial operations of the commission until its first
23annual budget is adopted and related assessments have been made, contributions
24from compacting states and others may be accepted and a one-time assessment on

1insurers doing a direct insurance business in the compacting states may be made not
2to exceed $450 per insurer.
AB992,23,103 (f) The commission's adopted budget for a fiscal year may not be approved until
4it has been subject to notice and comment as set forth for rules and operating
5procedures in sub. (7) (e). The budget shall determine the amount of the annual
6assessment. The commission may accumulate a net worth not to exceed 30% of its
7then annual cost of operation to provide for contingencies and events not
8contemplated. These accumulated funds shall be held separately and may not be
9used for any other purpose. The commission's budget may include a provision for a
10contribution to the commission's net worth.
AB992,23,1211 (g) The commission shall be exempt from all taxation in and by the compacting
12states.
AB992,23,1413 (h) The commission may not pledge the credit of any compacting state, except
14by and with the appropriate legal authority of that compacting state.
AB992,24,615 (i) The commission shall keep complete and accurate accounts of all its internal
16receipts, including grants and donations, and disbursements of all funds, other than
17receivership assets, under its control. The internal financial accounts of the
18commission shall be subject to the accounting procedures established under its
19bylaws. The financial accounts and reports including the system of internal controls
20and procedures of the commission shall be audited annually by an independent
21certified public accountant. Upon the determination of the commission, but no less
22frequently than every 3 years, the review of such independent auditor shall include
23a management and performance audit of the commission. The report of such
24independent audit shall be made available to the public and shall be included in and
25become part of the annual report of the commission to the governors and legislatures

1of the compacting states. The commission's internal accounts, any workpapers
2related to any internal audit and any workpapers related to the independent audit,
3shall be confidential; provided, that such materials shall be made available in
4compliance with the order of any court of competent jurisdiction, pursuant to such
5reasonable rules as the commission shall promulgate and to any commissioner or
6governor of a compacting state, or their duly authorized representatives.
AB992,24,97 (j) No compacting state shall have any claim to or ownership of any property
8held by or vested in the commission or the commission acting as receiver or to any
9other commission funds held pursuant to the provisions of this compact.
AB992,24,11 10(11) Article XI — Compacting States, Effective Date and Amendment. (a) Any
11state is eligible to become a compacting state.
AB992,24,1512 (b) The compact shall become effective and binding upon legislative enactment
13of the compact into law by 2 compacting states. Thereafter, it shall become effective
14and binding as to any other compacting state upon enactment of the compact into law
15by that state.
AB992,24,1916 (c) Amendments to the compact may be proposed by the commission for
17enactment by the compacting states. No amendment shall become effective and
18binding upon the commission and the compacting states unless and until it is enacted
19into law by unanimous consent of the compacting states.
AB992,24,23 20(12) Article XII — Withdrawal, Default and Termination. (a) Once effective,
21the compact shall continue in force and remain binding upon each and every
22compacting state; provided, that a compacting state may withdraw from the compact
23by repealing the statute which enacted the compact into law.
AB992,25,224 (b) The effective date of withdrawal is the effective date of the repeal; provided,
25that the repeal shall not apply to any receiverships for which the commission is

1acting as receiver that are pending on the date of the repeal except by mutual
2agreement of the commission and the withdrawing state.
AB992,25,53 (c) The withdrawing state shall immediately notify the chairperson of the
4commission in writing upon the introduction of legislation repealing this compact in
5the withdrawing state.
AB992,25,86 (d) The commission shall notify the other compacting states of the withdrawing
7state's intention to withdraw within 60 days after its receipt of the notice under par.
8(c).
AB992,25,189 (e) The withdrawing state is responsible for all assessments, obligations and
10liabilities incurred through the effective date of withdrawal, including any
11obligations, the performance of which extend beyond the effective date of
12withdrawal, except to the extent those obligations may have been released or
13relinquished by mutual agreement of the commission and the withdrawing state.
14Notwithstanding the foregoing, the withdrawing state is responsible for the costs
15and expenses of its estates subject to this compact that are pending on the date of
16repeal; the commission and the other estates subject to this compact shall not bear
17any costs or expenses related to the withdrawing state's estates unless otherwise
18mutually agreed upon between the commission and the withdrawing state.
AB992,25,2119 (f) Reinstatement following withdrawal of any compacting state shall occur
20upon the withdrawing state reenacting the compact or upon a later date determined
21by the commission.
AB992,26,1122 (g) If the commission determines that any compacting state has at any time
23defaulted in the performance of any of its obligations or responsibilities under this
24compact, the bylaws or duly promulgated rules, all rights, privileges and benefits
25conferred by this compact and any agreements entered into pursuant to this compact

1shall be suspended from the effective date of default as fixed by the commission. The
2grounds for default include, but are not limited to, failure of a compacting state to
3perform such obligations or responsibilities and any other grounds designated in
4commission rules. The commission shall immediately notify the defaulting state in
5writing of the defaulting state's suspension pending a cure of the default. The
6commission shall stipulate the conditions and the time period within which the
7defaulting state must cure its default. If the defaulting state fails to cure the default
8within the time period specified by the commission, the defaulting state shall be
9terminated from the compact upon an affirmative vote of a majority of the
10compacting states and all rights, privileges and benefits conferred by this compact
11shall be terminated from the effective date of termination.
AB992,26,1412 (h) Within 60 days after the effective date of termination of a defaulting state,
13the commission shall notify the governor and the majority and minority leaders of
14the defaulting state's legislature of such termination.
AB992,26,1715 (i) The termination of a defaulting state shall apply to all receiverships for
16which the commission is acting as receiver that are pending on the effective date of
17termination except by mutual agreement of the commission and the defaulting state.
AB992,26,2418 (j) The defaulting state is responsible for all assessments, obligations and
19liabilities incurred through the effective date of termination, and is responsible for
20the costs and expenses relating to its estates subject to this compact that are pending
21on the date of the termination. The commission and the other estates subject to this
22compact shall not bear any costs or expenses relating to the defaulting state's estates
23unless otherwise mutually agreed upon between the commission and the defaulting
24state.
AB992,27,3
1(k) Reinstatement following termination of any compacting state requires both
2a reenactment of the compact by the defaulting state and the approval of the
3commission pursuant to the rules.
AB992,27,64 (L) The compact dissolves effective upon the date of the withdrawal or the
5termination by default of the compacting state which reduces membership in the
6compact to one compacting state.
AB992,27,107 (m) Upon the dissolution of this compact, the compact becomes null and void
8and shall be of no further force or effect, and the business and affairs of the
9commission shall be wound up and any surplus funds shall be distributed in
10accordance with the bylaws.
AB992,27,14 11(13) Article XIII — Severability and Construction. (a) The provisions of this
12compact shall be severable, and if any phrase, clause, sentence or provision is
13declared unenforceable by a court of competent jurisdiction, the remaining
14provisions of the compact shall be enforceable.
AB992,27,1615 (b) The provisions of this compact shall be liberally construed to effectuate its
16purposes.
AB992,27,20 17(14) Article XIV — Binding Effect of Compact and Other Laws. (a) Nothing
18herein prevents the enforcement of any other law of a compacting state that is not
19inconsistent with this compact. All compacting states' laws conflicting with this
20compact are superseded to the extent of the conflict.
AB992,28,221 (b) All lawful actions of the commission, including all rules and operating
22procedures promulgated by the commission, are binding upon the compacting states.
23All agreements between the commission and the compacting states are binding in
24accordance with their terms. Upon the request of a party to a conflict over meaning
25or interpretation of commission actions, and upon a majority vote of the compacting

1states, the commission may issue advisory opinions regarding such meaning or
2interpretation.
AB992,28,93 (c) In the event any provision of this compact exceeds the constitutional limits
4imposed on the legislature of any compacting state, the obligations, duties, powers
5or jurisdiction sought to be conferred by such provision upon the commission shall
6be ineffective and such obligations, duties, powers or jurisdiction shall remain in the
7compacting state and shall be exercised by the agency thereof to which such
8obligations, duties, powers or jurisdiction are delegated by law in effect at the time
9this compact becomes effective.
AB992, s. 5 10Section 5. 601.595 of the statutes is created to read:
AB992,28,23 11601.595 Funding for interstate insurance receivership commission
12annual assessment.
From the appropriation under s. 20.145 (1) (c), the
13commissioner shall pay the annual assessment levied on this state by the interstate
14insurance receivership commission under s. 601.59 (10) (c). If the amounts
15appropriated under s. 20.145 (1) (c) are insufficient to cover this state's entire portion
16of the annual assessment under s. 601.59 (10) (c), the commissioner may not impose
17an assessment on insurers to cover the insufficiency but shall request additional
18funding under s. 13.101 to supplement the appropriation under s. 20.145 (1) (c).
19Notwithstanding s. 13.101 (3) (a) 1. and (4), the joint committee on finance shall,
20upon request, supplement the appropriation under s. 20.145 (1) (c) from the
21appropriation under s. 20.865 (4), may not transfer between appropriations to the
22office for the purpose of supplementing the appropriation under s. 20.145 (1) (c) and
23is not required to find that an emergency exists.
AB992,28,2424 (End)
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