On or before February 1, 1994, the commissioner shall submit the results of the study to the legislature under s. 13.172 (2)
and to the governor.
If, as a result of the study under sub. (1)
, the commissioner determines that a health insurance identification card system and its computerized support system are feasible and would be cost-effective, the commissioner shall promulgate rules to establish and implement the systems.
Interstate insurance product regulation compact.
The interstate insurance product regulation compact is hereby enacted into law and entered into by this state with all other jurisdictions legally joining therein, in substantially the following form:
(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:
To promote and protect the interest of consumers of individual and group annuity, life insurance, disability income, and long-term care insurance products.
To develop uniform standards for insurance products covered under the compact.
To establish a central clearinghouse to receive and provide prompt review of insurance products covered under the compact and, in certain cases, advertisements related thereto, submitted by insurers authorized to do business in one or more compacting states.
To give appropriate regulatory approval to those product filings and advertisements satisfying the applicable uniform standard.
To improve coordination of regulatory resources and expertise between state insurance departments regarding the setting of uniform standards and review of insurance products covered under the compact.
To create the interstate insurance product regulation commission.
To perform these and such other related functions as may be consistent with the state regulation of the business of insurance.
(2) Article II — Definitions.
In this compact:
“Advertisement" means any material designed to create public interest in a product or to induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replace, or retain a policy, as more specifically defined in the rules and operating procedures of the commission.
“Bylaws" mean those bylaws established by the commission for its governance, or for directing or controlling the commission's actions or conduct.
“Commission" means the interstate insurance product regulation commission established by this compact.
“Commissioner" means the chief insurance regulatory official of a state, including, but not limited to, commissioner, superintendent, director, or administrator.
“Compacting state" means any state that has enacted this compact legislation and that has not withdrawn under sub. (14) (a)
or been terminated under sub. (14) (g)
“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.
“Insurer" means any entity licensed by a state to issue contracts of insurance for any of the lines of insurance covered by this section.
“Member" means the person chosen by a compacting state as its representative to the commission, or his or her designee.
“Noncompacting state" means any state that is not at the time a compacting state.
“Operating procedures" mean procedures promulgated by the commission implementing a rule, a uniform standard, or a provision of this compact.
“Product" means the form of a policy or contract, including any application, endorsement, or related form that is attached to and made a part of the policy or contract, and any evidence of coverage or certificate, for an individual or group annuity, life insurance, disability income, or long-term care insurance product that an insurer is authorized to issue.
“Rule" means a statement of general or particular applicability and future effect promulgated by the commission, including a uniform standard developed under sub. (7)
, designed to implement, interpret, or prescribe law or policy or describing the organization, procedure, or practice requirements of the commission, which shall have the force and effect of law in the compacting states.
“State" means any state, district, or territory of the United States of America.
“Third-party filer" means an entity that submits a product filing to the commission on behalf of an insurer.
“Uniform standard" means a standard adopted by the commission for a product line, pursuant to sub. (7)
, and shall include all of the product requirements in the aggregate; provided, that each uniform standard shall be construed, whether express or implied, to prohibit the use of any inconsistent, misleading, or ambiguous provisions in a product and the form of the product made available to the public shall not be unfair, inequitable, or against public policy as determined by the commission.
(3) Article III — Establishment of the Commission and Venue.
The compacting states hereby create the interstate insurance product regulation commission. Pursuant to sub. (4)
, the commission will have the power to develop uniform standards for product lines, receive and provide prompt review of products filed therewith, and give approval to those product filings satisfying applicable uniform standards; provided, that it is not intended for the commission to be the exclusive entity for receipt and review of insurance product filings. Nothing herein shall prohibit any insurer from filing its product in any state wherein the insurer is licensed to conduct the business of insurance, and any such filing shall be subject to the laws of the state where filed. The commission is a body corporate and politic, and an instrumentality of the compacting states. The commission is solely responsible for its liabilities except as otherwise specifically provided in this compact. Venue is proper and judicial proceedings by or against the commission shall be brought solely and exclusively in a court of competent jurisdiction where the principal office of the commission is located.
(4) Article IV — Powers of the Commission.
The commission shall have all of the following powers:
To promulgate rules, pursuant to sub. (7)
, which shall be binding in the compacting states to the extent and in the manner provided in this compact.
To exercise its rule-making authority and establish reasonable uniform standards for products covered under the compact, and advertisement related thereto, which shall have the force and effect of law and shall be binding in the compacting states, but only for those products filed with the commission; provided, that a compacting state shall have the right to opt out of such uniform standard pursuant to sub. (7)
, to the extent and in the manner provided in this compact; and provided further, that any uniform standard established by the commission for long-term care insurance products may provide the same or greater protections for consumers as, but shall not provide less than, those protections set forth in the National Association of Insurance Commissioners' Long-Term Care Insurance Model Act and Long-Term Care Insurance Model Regulation, respectively, adopted as of 2001. The commission shall consider whether any subsequent amendments to the National Association of Insurance Commissioners' Long-Term Care Insurance Model Act or Long-Term Care Insurance Model Regulation adopted by the National Association of Insurance Commissioners require amending of the uniform standards established by the commission for long-term care insurance products.
To receive and review in an expeditious manner products filed with the commission, and rate filings for disability income and long-term care insurance products, and give approval of those products and rate filings that satisfy the applicable uniform standard, where such approval shall have the force and effect of law and be binding on the compacting states to the extent and in the manner provided in the compact.
To receive and review in an expeditious manner advertisement relating to long-term care insurance products for which uniform standards have been adopted by the commission, and give approval to all advertisement that satisfies the applicable uniform standard. For any product covered under this compact, other than long-term care insurance products, the commission shall have the authority to require an insurer to submit all or any part of its advertisement with respect to that product for review or approval prior to use, if the commission determines that the nature of the product is such that an advertisement of the product could have the capacity or tendency to mislead the public. The actions of the commission as provided in this subsection shall have the force and effect of law and shall be binding in the compacting states to the extent and in the manner provided in the compact.
To exercise its rule-making authority and designate products and advertisement that may be subject to a self-certification process without the need for prior approval by the commission.
To promulgate operating procedures, pursuant to sub. (7)
, that shall be binding in the compacting states to the extent and in the manner provided in this compact.
To bring and prosecute legal proceedings or actions in its name as the commission; provided, that the standing of any state insurance department to sue or be sued under applicable law shall not be affected.
To issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence.
To purchase and maintain insurance and bonds.
To borrow, accept, or contract for services of personnel, including, but not limited to, employees of a compacting state.
To hire employees, professionals, or specialists, and elect or appoint officers, and to fix their compensation, define their duties and give them appropriate authority to carry out the purposes of the compact, 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.
To accept any and all appropriate donations and grants of money, equipment, supplies, materials, and services, and to receive, utilize, and dispose of the same; provided, that at all times the commission shall strive to avoid any appearance of impropriety.
To lease, purchase, accept appropriate gifts or donations of, or otherwise own, hold, improve, or use, any property, real, personal, or mixed; provided, that at all times the commission shall strive to avoid any appearance of impropriety.
To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of any property, real, personal, or mixed.
To remit filing fees to compacting states as may be set forth in the bylaws, rules, or operating procedures.
To enforce compliance by compacting states with rules, uniform standards, operating procedures, and bylaws.
To provide for dispute resolution among compacting states.
To advise compacting states on issues relating to insurers domiciled or doing business in noncompacting jurisdictions, consistent with the purposes of this compact.
To provide advice and training to those personnel in state insurance departments responsible for product review, and to be a resource for state insurance departments.
To establish a budget and make expenditures.
To appoint committees, including advisory committees comprising members, state insurance regulators, state legislators or their representatives, insurance industry and consumer representatives, and such other interested persons as may be designated in the bylaws.
To provide and receive information from, and to cooperate with, law enforcement agencies.
To perform such other functions as may be necessary or appropriate to achieve the purposes of this compact consistent with the state regulation of the business of insurance.
(5) Article V — Organization of the Commission. 601.58(5)(a)(a)
Each compacting state shall have one member. Each member shall be qualified to serve in such capacity under the applicable law of the compacting state. Any member may be removed or suspended from office as provided by the law of the state from which he or she shall be appointed. Any vacancy occurring in the commission shall be filled in accordance with the laws of the compacting state wherein the vacancy exists. Nothing herein shall be construed to affect the manner in which a compacting state determines the election or appointment and qualification of its own commissioner.
Each member shall be entitled to one vote and shall have an opportunity to participate in the governance of the commission in accordance with the bylaws. Notwithstanding any provision herein to the contrary, no action of the commission with respect to the promulgation of a uniform standard shall be effective unless two-thirds of the members vote in favor thereof.
The commission shall, by a majority of the members, prescribe bylaws to govern its conduct as may be necessary or appropriate to carry out the purposes, and exercise the powers, of the compact, including, but not limited to:
Providing reasonable procedures for appointing and electing members, as well as holding meetings, of the management committee.
Providing reasonable standards and procedures for all of the following:
Governing any general or specific delegation of any authority or function of the commission.
Providing reasonable procedures for calling and conducting meetings of the commission that consist of a majority of commission members, ensuring reasonable advance notice of each such meeting, and providing for the right of citizens to attend each such meeting with enumerated exceptions designed to protect the public's interest, the privacy of individuals, and insurers' proprietary information, including trade secrets. The commission may meet in camera only after a majority of the entire membership votes to close a meeting en toto or in part. As soon as practicable, the commission must make public all of the following:
A copy of the vote to close the meeting revealing the vote of each member with no proxy votes allowed.
Establishing the titles, duties, and authority, and reasonable procedures for the election, of the officers of the commission.
Providing reasonable standards and procedures for the establishment of the personnel policies and programs of the commission. Notwithstanding any civil service or other similar laws of any compacting state, the bylaws shall exclusively govern the personnel policies and programs of the commission.
Promulgating a code of ethics to address permissible and prohibited activities of commission members and employees.
Providing a mechanism for winding up the operations of the commission and the equitable disposition of any surplus funds that may exist after the termination of the compact after the payment or reserving of all of its debts and obligations.
The commission shall publish its bylaws in a convenient form and file a copy thereof and a copy of any amendment thereto, with the appropriate agency or officer in each of the compacting states.
A management committee comprising no more than 14 members shall be established as follows:
One member from each of the 6 compacting states with the largest premium volume for individual and group annuities, life insurance, disability income, and long-term care insurance products, determined from the records of the National Association of Insurance Commissioners for the prior year.
Four members from those compacting states with at least 2 percent of the market based on the premium volume described in subd. 1.
, other than the 6 compacting states with the largest premium volume, selected on a rotating basis as provided in the bylaws.
Four members from those compacting states with less than 2 percent of the market, based on the premium volume described in subd. 1.
, with one selected from each of the 4 zone regions of the National Association of Insurance Commissioners as provided in the bylaws.
The management committee shall have such authority and duties as may be set forth in the bylaws, including, but not limited to, all of the following:
Managing the affairs of the commission in a manner consistent with the bylaws and purposes of the commission.
Establishing and overseeing an organizational structure within, and appropriate procedures for, the commission to provide for the creation of uniform standards and other rules, receipt and review of product filings, administrative and technical support functions, review of decisions regarding the disapproval of a product filing, and the review of elections made by a compacting state to opt out of a uniform standard; provided, that a uniform standard shall not be submitted to the compacting states for adoption unless approved by two-thirds of the members of the management committee.
Planning, implementing, and coordinating communications and activities with other state, federal, and local government organizations in order to advance the goals of the commission.
The commission shall elect annually officers from the management committee, with each having such authority and duties as may be specified in the bylaws.
The management committee may, subject to the approval of the commission, appoint or retain an executive director for such period, upon such terms and conditions, and for such compensation as the commission determines appropriate. The executive director shall serve as secretary to the commission, but may not be a member of the commission. The executive director shall hire and supervise such other staff as may be authorized by the commission.
A legislative committee comprising state legislators or their designees shall be established to monitor the operations of, and make recommendations to, the commission, including the management committee; provided, that the manner of selection and term of any legislative committee member shall be as set forth in the bylaws. Prior to the adoption by the commission of any uniform standard, revision to the bylaws, annual budget, or other significant matter as may be provided in the bylaws, the management committee shall consult with and report to the legislative committee.
The commission shall establish 2 advisory committees, one of which shall comprise consumer representatives independent of the insurance industry, and the other comprising insurance industry representatives.
The commission may establish additional advisory committees as its bylaws may provide for the carrying out of its functions.
The commission shall maintain its corporate books and records in accordance with the bylaws.
The members, officers, executive director, employees, and representatives of the commission shall be immune from suit and liability, either personally or in their official capacity, for any claim for damage to or loss of property or personal injury or other civil liability caused by or arising out of or relating to any actual or alleged act, error, or omission that occurred, or that the person against whom the claim is made had a reasonable basis for believing occurred, within the scope of commission employment, duties, or responsibilities; provided, that nothing in this paragraph shall be construed to protect any such person from suit or liability for any damage, loss, injury, or liability caused by the intentional or willful and wanton misconduct of that person.