This chapter may be cited as the "Interstate Insurance Product Regulation Compact".
HISTORY: 2008 Act No. 339, Section 2, eff January 1, 2009; Reenacted by 2016 Act No. 161 (H.4662), Section 1, eff June 1, 2014.
Editor's Note
2008 Act No. 339, Sections 1, 3, 4, and 6, provide as follows:
"SECTION 1. The purposes of the Interstate Insurance Product Regulation Compact are, through means of joint and cooperative action among the compacting states to:
"(1) promote and protect the interests of consumers of individual and group annuity, life insurance, disability income, and long-term care insurance products;
"(2) develop uniform standards for insurance products covered under the compact;
"(3) establish a central clearinghouse to receive and provide prompt review of insurance products covered under the compact and, in certain cases, advertisements related to them, submitted by insurers authorized to do business in one or more compacting states;
"(4) give appropriate regulatory approval to those product filings and advertisements satisfying the applicable uniform standard;
"(5) 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;
"(6) create the Interstate Insurance Product Regulation Commission; and
"(7) perform these and other related functions consistent with the state regulation of the business of insurance."
"SECTION 3. (A)(1) Nothing in this chapter prevents the enforcement of any other law of a compacting state, except as provided in subsection (B) of this section.
"(2) For a product approved or certified to the commission, the rules, uniform standards, and other requirements of the commission constitute the exclusive provisions applicable to the content, approval, and certification of these products. For advertisement that is subject to the commission's authority, any rule, uniform standard, or other requirement of the commission, which governs the content of the advertisement, constitutes the exclusive provision that a commissioner may apply to the content of the advertisement. Notwithstanding another provision of law, action taken by the commission does not abrogate or restrict:
"(a) the access of a person to state courts;
"(b) remedies available pursuant to state law related to breach of contract, tort, or other laws not specifically directed to the content of the product;
"(c) state law relating to the construction of insurance contracts; or
"(d) the authority of the attorney general of the state including, but not limited to, maintaining an action or proceeding, as authorized by law.
"(3) All insurance products filed with individual states are subject to the laws of those states.
"(B)(1) All lawful actions of the commission, including all rules and operating procedures adopted by the commission, are binding upon the compacting states.
"(2) All agreements between the commission and the compacting states are binding in accordance with their terms.
"(3) 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.
"(4) If a provision of this compact exceeds the constitutional limits imposed on the legislature of a compacting state, the obligations, duties, powers, or jurisdiction sought to be conferred by that provision upon the commission are ineffective as to that compacting state, and those obligations, duties, powers, or jurisdiction remain in the compacting state and must be exercised by the agency which those obligations, duties, powers, or jurisdiction are delegated by law in effect at the time this compact becomes effective."
"SECTION 4. No later than October 1, 2013, the director shall submit a report to the General Assembly on the effectiveness of the state's participation in the compact. The report shall include consideration of any issues deemed relevant by the director to the state's participation in the compact and shall include recommended legislative proposals related to the compact. The report also shall include the director's recommendation to the General Assembly as to whether the state's continued participation in the compact is in the best interest of the citizens of this State. Based on the director's recommendations outlined in the report, the General Assembly shall determine whether to extend this act beyond June 1, 2014."
"SECTION 6. This act becomes effective January 1, 2009, and expires June 1, 2014, unless extended by the General Assembly."
2016 Act No. 161, Section 1, provides as follows:
"SECTION 1. The Interstate Insurance Product Regulation Compact, as established by Section 2, Act 339 of 2008, and contained in Chapter 95, Title 38, and related provisions contained in Sections 1, 3, and 5, Act 339 of 2008, all are reenacted as provided in Act 339 of 2008, retroactive to June 1, 2014, when the act expired. The reporting requirements of Section 4, and the expiration provision of Section 6, Act 339 of 2008, are not reenacted."