505A.1 Interstate insurance product regulation compact. The interstate insurance product regulation compact is hereby entered into and enacted into law with all jurisdictions legally joining therein, in the form substantially as follows: 1. Article I — Purposes. The purposes of this compact are, through means of joint and cooperative action among the compacting states: a. To promote and protect the interest of consumers of individual and group annuity, life insurance, disability income and long-term care insurance products. b. To develop uniform standards for insurance products covered under this compact.c. 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. d. To give appropriate regulatory approval to those product filings and advertisements satisfying the applicable uniform standard. e. To improve coordination of regulatory resources and expertise between state insurance departments regarding the setting of uniform standards and review of insurance productscovered under this ard. e. To improve coordination of regulatory resources and expertise between state insurance departments regarding the setting of uniform standards and review of insurance productscovered under this compact. f. To create the interstate insurance product regulation commission. g. 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. For purposes of this compact, unless the context otherwise requires: a. 'Advertisement' means any material designed to create public interest in a product, or induce the public to purchase, increase, modify, reinstate, borrow on, surrender, replaceor retain a policy, as more specifically defined in the rules and operating procedures of thecommission. b. 'Bylaws' means those bylaws established by the commission for its governance, or for directing or controlling the commission’s actions or conduct. c. 'Commission' means the interstate insurance product regulation commission established by this compact. d. 'Commissioner' means the chief insurance regulatory official of a state including, but not limited to, commissioner, superintendent, director, or regulation commission established by this compact. d. 'Commissioner' means the chief insurance regulatory official of a state including, but not limited to, commissioner, superintendent, director, or administrator. e. 'Compacting state' means any state that has enacted this compact legislation and that has not withdrawn pursuant to article XIV, paragraph 'a', or been terminated pursuant toarticle XIV, paragraph 'b'. 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. g. 'Insurer' means any entity licensed by a state to issue contracts of insurance for any of the lines of insurance covered by this compact. h. 'Member' means the person chosen by a compacting state as its representative to the commission, or the person’s designee. The commissioner of insurance shall be therepresentative member of the compact for the state of Iowa. i. 'Noncompacting state' means any state which is not at the time a compacting state.j. 'Operating procedures' means procedures promulgated by the commission implementing a rule, uniform standard, or a provision of this compact. k. ny state which is not at the time a compacting state.j. 'Operating procedures' means procedures promulgated by the commission implementing a rule, uniform standard, or a provision of this compact. k. 'Product' means the form of a policy or contract, including any application, endorsement, or related form which 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. l. 'Rule' means a statement of general or particular applicability and future effect promulgated by the commission, including a uniform standard developed pursuant toarticle VII, designed to implement, interpret, or prescribe law or policy, or describing theorganization, procedure, or practice requirements of the commission, which shall have theforce and effect of law in the compacting states. m. 'State' means any state, district, or territory of the United States of America. Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0) §505A.1, INTERSTATE INSURANCE PRODUCT REGULATION COMPACT 2 n. means any state, district, or territory of the United States of America. Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0) §505A.1, INTERSTATE INSURANCE PRODUCT REGULATION COMPACT 2 n. 'Third-party filer' means an entity that submits a product filing to the commission on behalf of an insurer. o. 'Uniform standard' means a standard adopted by the commission for a product line, pursuant to article VII, and shall include all of the product requirements in aggregate,provided that each uniform standard shall be construed, whether express or implied, toprohibit the use of any inconsistent, misleading, or ambiguous provisions in a product, andthe form of the product made available to the public shall not be unfair, inequitable, oragainst public policy as determined by the commission. 3. Article III — Establishment of the commission and venue.a. The compacting states hereby create and establish a joint public agency known as the interstate insurance product regulation commission. Pursuant to article IV, the commissionhas the power to develop uniform standards for product lines, receive and provide promptreview of products filed therewith, and give approval to those product n. Pursuant to article IV, the commissionhas the power to develop uniform standards for product lines, receive and provide promptreview of products filed therewith, and give approval to those product filings satisfyingapplicable uniform standards, provided it is not intended for the commission to be theexclusive entity for receipt and review of insurance product filings. Nothing herein shallprohibit any insurer from filing its product in any state wherein the insurer is licensed toconduct the business of insurance, and any such filing shall be subject to the laws of thestate where filed. b. The commission is a body corporate and politic, and an instrumentality of the compacting state. c. The commission is solely responsible for its liabilities except as otherwise specifically provided in this compact. d. 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 thecommission is located. 4. Article IV — Powers of the commission. The commission shall have the following powers: a. d exclusively in a court of competent jurisdiction where the principal office of thecommission is located. 4. Article IV — Powers of the commission. The commission shall have the following powers: a. To promulgate rules, pursuant to article VII, which shall have the force and effect of law and shall be binding in the compacting states to the extent and in the manner providedin this compact. b. To exercise its rulemaking authority and establish reasonable uniform standards for products covered under this compact, and advertisement related thereto, which shallhave the force and effect of law and shall be binding in the compacting states, but onlyfor those products filed with the commission, provided that a compacting state shall havethe right to opt out of such uniform standard pursuant to article VII, to the extent and inthe manner provided in this compact, and, provided further, that any uniform standardestablished by the commission for long-term care insurance products may provide the sameor greater protections for consumers as, but shall not provide less than, those protectionsset forth in the national association of insurance commissioners’ long-term care insurancemodel act and sameor greater protections for consumers as, but shall not provide less than, those protectionsset forth in the national association of insurance commissioners’ long-term care insurancemodel act and long-term care insurance model regulation, respectively, adopted as of 2001.The commission shall consider whether any subsequent amendments to the long-termcare insurance model act or long-term care insurance model regulation adopted by thenational association of insurance commissioners require amending of the uniform standardsestablished by the commission for long-term care insurance products. c. 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 approvalof those products and rate filings that satisfy the applicable uniform standard, where suchapproval shall have the force and effect of law, and be binding on the compacting states tothe extent and in the manner provided in the compact. d. 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 in the compact. d. 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. Forany 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 ofits advertisement with respect to that product for review or approval prior to use, if thecommission determines that the nature of the product is such that an advertisement of Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0) the product could have the capacity or tendency to mislead the public. The actions of thecommission as provided in this article shall have the force and effect of law and shall bebinding in the compacting states to the extent and in the manner provided in this compact. e. To exercise its rulemaking authority and designate products and advertisement that may be subject to a self-certification process without the need for prior approval by thecommission. f. compact. e. To exercise its rulemaking authority and designate products and advertisement that may be subject to a self-certification process without the need for prior approval by thecommission. f. To promulgate operating procedures, pursuant to article VII, which shall be binding in the compacting states to the extent and in the manner provided in this compact. g. 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 underapplicable law shall not be affected. h. To issue subpoenas requiring the attendance and testimony of witnesses and the production of evidence. i. To establish and maintain offices.j. To purchase and maintain insurance and bonds.k. To borrow, accept, or contract for services of personnel, including, but not limited to, employees of a compacting state. l. 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 carryout the purposes of this compact, and determine their qualifications, and to establish thecommission’s personnel policies and nsation, define their duties, and give them appropriate authority to carryout the purposes of this compact, and determine their qualifications, and to establish thecommission’s personnel policies and programs relating to, among other things, conflicts ofinterest, rates of compensation, and qualifications of personnel. m. 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 alltimes the commission shall strive to avoid any appearance of impropriety. n. To lease, purchase, accept appropriate gifts or donations of, or otherwise to own, hold, improve, or use, any property, real, personal, or mixed, provided that at all times thecommission shall strive to avoid any appearance of impropriety. o. To sell, convey, mortgage, pledge, lease, exchange, abandon, or otherwise dispose of any property, real, personal, or mixed. p. To remit filing fees to compacting states as may be set forth in the bylaws, rules, or operating procedures. q. To enforce compliance by compacting states with rules, uniform standards, operating procedures, and bylaws. r. compacting states as may be set forth in the bylaws, rules, or operating procedures. q. To enforce compliance by compacting states with rules, uniform standards, operating procedures, and bylaws. r. To provide for dispute resolution among compacting states. s. To advise compacting states on issues relating to insurers domiciled or doing business in noncompacting jurisdictions, consistent with the purposes of this compact. t. 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. u. To establish a budget and make expenditures.v. To borrow money. w. To appoint committees, including advisory committees comprising members, state insurance regulators, state legislators or their representatives, insurance industry andconsumer representatives, and such other interested persons as may be designated in thebylaws. x. To provide and receive information from, and to cooperate with, law enforcement agencies. y. To adopt and use a corporate seal. z. To perform such other functions as may be necessary or appropriate to achieve the purposes of this compact consistent with the state law enforcement agencies. y. To adopt and use a corporate seal. z. 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.a. Membership, voting, and bylaws.(1) Each compacting state shall have and be limited to one member. Each member shall be qualified to serve in that capacity pursuant to applicable law of the compacting state. Anymember may be removed or suspended from office as provided by the law of the state fromwhich the member is appointed. Any vacancy occurring in the commission shall be filled in Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0) §505A.1, INTERSTATE INSURANCE PRODUCT REGULATION COMPACT 4 accordance with the laws of the compacting state wherein the vacancy exists. Nothing hereinshall be construed to affect the manner in which a compacting state determines the electionor appointment and qualification of its own commissioner. (2) 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. nd qualification of its own commissioner. (2) 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 anyprovision herein to the contrary, no action of the commission with respect to the promulgationof a uniform standard shall be effective unless two-thirds of the members vote in favor thereof. (3) 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 thepowers, of the compact, including, but not limited to: (a) Establishing the fiscal year of the commission.(b) Providing reasonable procedures for appointing and electing members, as well as holding meetings, of the management committee. (c) Providing reasonable standards and procedures:(i) For the establishment and meetings of other committees.(ii) Governing any general or specific delegation of any authority or function of the commission. (d) Providing reasonable procedures for calling and conducting meetings of the commission that consists of a majority of commission members ensuring reasonable uthority or function of the commission. (d) Providing reasonable procedures for calling and conducting meetings of the commission that consists of a majority of commission members ensuring reasonable advancenotice of each such meeting, and providing for the right of citizens to attend each suchmeeting with enumerated exceptions designed to protect the public’s interest, the privacy ofindividuals, and insurers’ proprietary information, including trade secrets. The commissionmay meet in camera only after a majority of the entire membership votes to close a meetingen toto or in part. As soon as practicable, the commission shall make public: (i) A copy of the vote to close the meeting, revealing the vote of each member, with no proxy votes allowed. (ii) Votes taken during such meeting.(e) Establishing the titles, duties, and authority, and reasonable procedures for the election of the officers of the commission. (f) Providing reasonable standards and procedures for the establishment of the personnel policies and programs of the commission. Notwithstanding any civil service or other similarlaws of any compacting state, the bylaws shall exclusively govern the personnel policies nt of the personnel policies and programs of the commission. Notwithstanding any civil service or other similarlaws of any compacting state, the bylaws shall exclusively govern the personnel policies andprograms of the commission. (g) 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 this compactafter the payment or reserving of all of its debts and obligations. (h) Promulgating a code of ethics to address permissible and prohibited activities of commission members and employees. (4) The commission shall publish its bylaws in a convenient form and file a copy of the bylaws, along with any amendments, with the appropriate agency or officer in each of thecompacting states. b. Management committee, officers, and personnel.(1) A management committee comprising no more than fourteen members shall be established as follows: (a) One member from each of the six compacting states with the largest premium volume for individual and group annuities, life, disability income, and long-term careinsurance products, determined from the records of the national association of ng states with the largest premium volume for individual and group annuities, life, disability income, and long-term careinsurance products, determined from the records of the national association of insurancecommissioners for the prior year. (b) Four members from those compacting states with at least two percent of the market based on the premium volume described in subparagraph division (a), other than the sixcompacting states with the largest premium volume, selected on a rotating basis as providedin the bylaws. (c) Four members from those compacting states with less than two percent of the market, based on the premium volume described in subparagraph division (a), with one selectedfrom each of the four zone regions of the national association of insurance commissioners asprovided in the bylaws. Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0) (2) The management committee shall have such authority and duties as may be set forth in the bylaws, including but not limited to: (a) Managing the affairs of the commission in a manner consistent with the bylaws and purposes of the commission. authority and duties as may be set forth in the bylaws, including but not limited to: (a) Managing the affairs of the commission in a manner consistent with the bylaws and purposes of the commission. (b) Establishing and overseeing an organizational structure within, and appropriate procedures for, the commission to provide for the creation of uniform standards and otherrules, 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 electionsmade by a compacting state to opt out of a uniform standard, provided that a uniformstandard shall not be submitted to the compacting states for adoption unless approved bytwo-thirds of the members of the management committee. (c) Overseeing the offices of the commission.(d) Planning, implementing, and coordinating communications and activities with other state, federal, and local government organizations in order to advance the goals of thecommission. (3) The commission shall elect annually officers from the management committee, with each having such authority and duties, as may be specified in the bylaws. r to advance the goals of thecommission. (3) The commission shall elect annually officers from the management committee, with each having such authority and duties, as may be specified in the bylaws. (4) 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 suchcompensation as the commission may deem appropriate. The executive director shall serveas secretary to the commission, but shall not be a member of the commission. The executivedirector shall hire and supervise such other staff as may be authorized by the commission. c. Legislative and advisory committees.(1) 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 ofany legislative committee member shall be as set forth in the bylaws. Prior to the adoptionby the commission of any uniform standard, revision to the bylaws, annual budget, or othersignificant matter as may be provided in the bylaws, the management committee he bylaws. Prior to the adoptionby the commission of any uniform standard, revision to the bylaws, annual budget, or othersignificant matter as may be provided in the bylaws, the management committee shallconsult with and report to the legislative committee. (2) The commission shall establish two advisory committees, one of which shall comprise consumer representatives independent of the insurance industry, and the other comprisinginsurance industry representatives. (3) The commission may establish additional advisory committees as its bylaws may provide for the carrying out of its functions. d. Corporate records of the commission. The commission shall maintain its corporate books and records in accordance with the bylaws. e. Qualified immunity, defense, and indemnification.(1) The members, officers, executive director, employees, and representatives of the commission shall be immune from suit and liability, either personally or in their officialcapacity, for any claim for damage to, or loss of, property, personal injury, or other civilliability caused by or arising out of any actual or alleged act, error, or omission that occurred,or that the person against whom the claim is made r loss of, property, personal injury, or other civilliability caused by or arising out of 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 believingoccurred, within the scope of commission employment, duties, or responsibilities, providedthat nothing in this subparagraph shall be construed to protect any such person from suitor liability for any damage, loss, injury, or liability caused by the intentional or willful andwanton misconduct of that person. (2) The commission shall defend any member, officer, executive director, employee, or representative of the commission in any civil action seeking to impose liability arising out ofany actual or alleged act, error, or omission that occurred within the scope of commissionemployment, duties, or responsibilities, or that the person against whom the claim is madehad a reasonable basis for believing occurred within the scope of commission employment,duties, or responsibilities, provided that nothing herein shall be construed to prohibit thatperson from retaining the person’s own counsel; and, provided further, that the actual oralleged act, error, or s, or responsibilities, provided that nothing herein shall be construed to prohibit thatperson from retaining the person’s own counsel; and, provided further, that the actual oralleged act, error, or omission did not result from that person’s intentional or willful andwanton misconduct. Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0) §505A.1, INTERSTATE INSURANCE PRODUCT REGULATION COMPACT 6 (3) The commission shall indemnify and hold harmless any member, officer, executive director, employee, or representative of the commission for the amount of any settlementor judgment obtained against that person arising out of any actual or alleged act, error,or omission that occurred within the scope of commission employment, duties, orresponsibilities, or that such person had a reasonable basis for believing occurred withinthe scope of commission employment, duties, or responsibilities, provided that the actualor alleged act, error, or omission did not result from the intentional or willful and wantonmisconduct of that person. 6. Article VI — Meetings and acts of the commission.a. , provided that the actualor alleged act, error, or omission did not result from the intentional or willful and wantonmisconduct of that person. 6. Article VI — Meetings and acts of the commission.a. The commission shall meet and take such actions as are consistent with the provisions of this compact and the bylaws. b. Each member of the commission shall have the right and power to cast a vote to which that compacting state is entitled and to participate in the business and affairs of thecommission. A member shall vote in person or by such other means as provided in thebylaws. The bylaws may provide for members’ participation in meetings by telephone orother means of communication. c. The commission shall meet at least once during each calendar year. Additional meetings shall be held as set forth in the bylaws. 7. Article VII — Rules and operating procedures — rulemaking functions of the commission and opting out of uniform standards. a. Rulemaking authority. The commission shall promulgate reasonable rules, including uniform standards and operating procedures, in order to effectively and efficiently achievethe purposes of this compact. emaking authority. The commission shall promulgate reasonable rules, including uniform standards and operating procedures, in order to effectively and efficiently achievethe purposes of this compact. Notwithstanding the foregoing, in the event the commissionexercises its rulemaking authority in a manner that is beyond the scope of the purposes ofthis compact, or the powers granted hereunder, such an action by the commission shall beinvalid and have no force and effect. b. Rulemaking procedure. Rules and operating procedures shall be made pursuant to a rulemaking process that conforms to the model state administrative procedure act of1981 as amended, as may be appropriate to the operations of the commission. Before thecommission adopts a uniform standard, the commission shall give written notice to therelevant state legislative committee or committees in each compacting state responsiblefor insurance issues of its intention to adopt the uniform standard. The commission, inadopting a uniform standard, shall consider fully all submitted materials and issue a conciseexplanation of its decision. c. Effective date and opt out of a uniform standard. ndard. The commission, inadopting a uniform standard, shall consider fully all submitted materials and issue a conciseexplanation of its decision. c. Effective date and opt out of a uniform standard. A uniform standard shall become effective ninety days after its promulgation by the commission or such later date as thecommission may determine, provided, however, that a compacting state may opt out of auniform standard as provided in this article. 'Opt out' means any action by a compactingstate to decline to adopt or participate in a promulgated uniform standard. All other rulesand operating procedures, and amendments thereto, shall become effective as of the datespecified in each rule, operating procedure, or amendment. d. Opt-out procedure.(1) A compacting state may opt out of a uniform standard, either by legislation or regulation duly promulgated by the insurance department under the compacting state’sadministrative procedure act. If a compacting state elects to opt out of a uniform standardby regulation, it must do all of the following: (a) Give written notice to the commission no later than ten business days after the uniform standard is promulgated, or at the time the state m standardby regulation, it must do all of the following: (a) Give written notice to the commission no later than ten business days after the uniform standard is promulgated, or at the time the state becomes a compacting state. (b) Find that the uniform standard does not provide reasonable protections to the citizens of the state, given the conditions in the state. (2) The commissioner shall make specific findings of fact and conclusions of law, based on a preponderance of the evidence, detailing the conditions in the state which warrant adeparture from the uniform standard and determining that the uniform standard would notreasonably protect the citizens of the state. The commissioner must consider and balancethe following factors and find that the conditions in the state and needs of the citizens of thestate outweigh both of the following: Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0) (a) The intent of the legislature to participate in, and the benefits of, an interstate agreement to establish national uniform consumer protections for the products subject tothis compact. 1 (16, 0) (a) The intent of the legislature to participate in, and the benefits of, an interstate agreement to establish national uniform consumer protections for the products subject tothis compact. (b) The presumption that a uniform standard adopted by the commission provides reasonable protections to consumers of the relevant product. (3) Notwithstanding the foregoing, a compacting state may, at the time of its enactment of this compact, prospectively opt out of all uniform standards involving long-term careinsurance products by expressly providing for such opt out in the enacted compact, and suchan opt out shall not be treated as a material variance in the offer or acceptance of any stateto participate in this compact. Such an opt out shall be effective at the time of enactmentof this compact by the compacting state and shall apply to all existing uniform standardsinvolving long-term care insurance products and those subsequently promulgated. e. Effect of opt out.(1) If a compacting state elects to opt out of a uniform standard, the uniform standard shall remain applicable in the compacting state electing to opt out until such time the opt-outlegislation is enacted into law or g state elects to opt out of a uniform standard, the uniform standard shall remain applicable in the compacting state electing to opt out until such time the opt-outlegislation is enacted into law or the regulation opting out becomes effective. (2) Once the opt out of a uniform standard by a compacting state becomes effective, as provided under the laws of that state, the uniform standard shall have no further force andeffect in that state unless and until the legislation or regulation implementing the opt out isrepealed or otherwise becomes ineffective under the laws of the state. If a compacting stateopts out of a uniform standard after the uniform standard has been made effective in thatstate, the opt out shall have the same prospective effect as provided under article XIV forwithdrawals. 8. Article VIII — Commission records and enforcement.a. The commission shall promulgate rules establishing conditions and procedures for public inspection and copying of its information and official records, except such informationand records involving the privacy of individuals and insurers’ trade secrets. nditions and procedures for public inspection and copying of its information and official records, except such informationand records involving the privacy of individuals and insurers’ trade secrets. The commissionmay promulgate additional rules under which it may make available to federal and stateagencies, including law enforcement agencies, records, and information otherwise exemptfrom disclosure, and may enter into agreements with such agencies to receive or exchangeinformation or records subject to nondisclosure and confidentiality provisions. b. Except as to privileged records, data, and information, the laws of any compacting state pertaining to confidentiality or nondisclosure shall not relieve any compacting statecommissioner of the duty to disclose any relevant records, data, or information to thecommission, provided that disclosure to the commission shall not be deemed to waiveor otherwise affect any confidentiality requirement, and further provided that, except asotherwise expressly provided in this compact, the commission shall not be subject to thecompacting state’s laws pertaining to confidentiality and nondisclosure with respect torecords, data, and information in expressly provided in this compact, the commission shall not be subject to thecompacting state’s laws pertaining to confidentiality and nondisclosure with respect torecords, data, and information in its possession. Confidential information of the commissionshall remain confidential after such information is provided to any commissioner. c. The commission shall monitor compacting states for compliance with duly adopted bylaws, rules, including uniform standards, and operating procedures. The commission shallnotify any noncomplying compacting state in writing of its noncompliance with commissionbylaws, rules, or operating procedures. If a noncomplying compacting state fails to remedyits noncompliance within the time specified in the notice of noncompliance, the compactingstate shall be deemed to be in default as set forth in article XIV. d. The commissioner of any state in which an insurer is authorized to do business, or is conducting the business of insurance, shall continue to exercise the commissioner’sauthority to oversee the market regulation of the activities of the insurer in accordance withthe provisions of the state’s law. he business of insurance, shall continue to exercise the commissioner’sauthority to oversee the market regulation of the activities of the insurer in accordance withthe provisions of the state’s law. The commissioner’s enforcement of compliance with thecompact is governed by the following provisions: (1) With respect to the commissioner’s market regulation of a product or advertisement that is approved or certified to the commission, the content of the product or advertisementshall not constitute a violation of the provisions, standards, or requirements of this compactexcept upon a final order of the commission, issued at the request of a commissioner afterprior notice to the insurer and an opportunity for hearing before the commission. Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0) §505A.1, INTERSTATE INSURANCE PRODUCT REGULATION COMPACT 8 (2) Before a commissioner may bring an action for violation of any provision, standard, or requirement of this compact relating to the content of an advertisement not approvedor certified to the commission, the commission, or an authorized commission officer oremployee, must authorize the action. ment of this compact relating to the content of an advertisement not approvedor certified to the commission, the commission, or an authorized commission officer oremployee, must authorize the action. However, authorization pursuant to this subparagraphdoes not require notice to the insurer, opportunity for hearing, or disclosure of requests forauthorization or records of the commission’s action on such requests. e. Stay of uniform standard. If a compacting state has formally initiated the process of opting out of a uniform standard by regulation, and while the regulatory opt out is pending,the compacting state may petition the commission, at least fifteen days before the effectivedate of the uniform standard, to stay the effectiveness of the uniform standard in that state.The commission may grant a stay if it determines the regulatory opt out is being pursued ina reasonable manner and there is a likelihood of success. If a stay is granted or extendedby the commission, the stay or extension thereof may postpone the effective date by up toninety days, unless affirmatively extended by the commission, provided a stay may not bepermitted to remain in effect for more than one year extension thereof may postpone the effective date by up toninety days, unless affirmatively extended by the commission, provided a stay may not bepermitted to remain in effect for more than one year unless the compacting state can showextraordinary circumstances which warrant a continuance of the stay, including, but notlimited to, the existence of a legal challenge which prevents the compacting state from optingout. A stay may be terminated by the commission upon notice that the rulemaking processhas been terminated. f. Not later than thirty days after a rule or operating procedure is adopted, any person may file a petition for judicial review of the rule or operating procedure, provided that thefiling of such a petition shall not stay or otherwise prevent the rule or operating procedurefrom becoming effective unless the court finds that the petitioner has a substantial likelihoodof success. The court shall give deference to the actions of the commission consistent withapplicable law and shall not find the rule or operating procedure to be unlawful if the rule oroperating procedure represents a reasonable exercise of the commission’s authority. 9. on consistent withapplicable law and shall not find the rule or operating procedure to be unlawful if the rule oroperating procedure represents a reasonable exercise of the commission’s authority. 9. Article IX — Dispute resolution. The commission shall attempt, upon the request of a member, to resolve any disputes or other issues which are subject to this compact andwhich may arise between two or more compacting states, or between compacting statesand noncompacting states, and the commission shall promulgate an operating procedureproviding for resolution of such disputes. 10. Article X — Product filing and approval.a. Insurers and third-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 thiscompact shall be construed to restrict or otherwise prevent an insurer from filing its productwith the insurance department in any state wherein the insurer is licensed to conduct thebusiness of insurance, and such filing shall be subject to the laws of the states where filed. b. The commission shall establish appropriate filing and review processes and procedures pursuant to commission s of insurance, and such filing shall be subject to the laws of the states where filed. b. The commission shall establish appropriate filing and review processes and procedures pursuant to commission rules and operating procedures. Notwithstanding any provisionherein to the contrary, the commission shall promulgate rules to establish conditionsand procedures under which the commission will provide public access to product filinginformation. 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 medicaland financial information and trade secrets, that may be contained in a product filing orsupporting information. c. Any product approved by the commission may be sold or otherwise issued in those compacting states in which the insurer is legally authorized to do business. 11. Article XI — Review of commission decisions regarding filings.a. Not later than thirty days after the commission has given notice of a disapproved product or advertisement filed with the commission, the insurer or third-party filer whosefiling was disapproved may appeal the determination to a review panel ssion has given notice of a disapproved product or advertisement filed with the commission, the insurer or third-party filer whosefiling was disapproved may appeal the determination to a review panel appointed by thecommission. The commission shall adopt rules to establish procedures for appointing suchreview 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 accordancewith the law, is subject to judicial review in accordance with article III, paragraph 'd'. Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0) 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 doesnot meet the relevant uniform standard. Where appropriate, the commission may withdrawor modify its approval after proper notice and hearing, subject to the appeal process inparagraph 'a'. 12. Article XII — Finance.a. ant uniform standard. Where appropriate, the commission may withdrawor modify its approval after proper notice and hearing, subject to the appeal process inparagraph 'a'. 12. Article XII — Finance.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 commissionmay accept contributions and other forms of funding from the national association ofinsurance commissioners, compacting states, and other sources. Contributions and otherforms of funding from other sources shall be of such a nature that the independence of thecommission concerning the performance of its duties shall not be compromised. b. The commission shall collect a filing fee from each insurer and third-party filer filing a product with the commission to cover the cost of the operations and activities of thecommission and its staff in a total amount sufficient to cover the commission’s annual budget. c. The commission’s budget for a fiscal year shall not be approved until it has been subject to notice and comment as set forth in article VII. d. sufficient to cover the commission’s annual budget. c. The commission’s budget for a fiscal year shall not be approved until it has been subject to notice and comment as set forth in article VII. d. The commission shall be exempt from all taxation in and by the compacting states.e. The commission shall not pledge the credit of any compacting state, except by and with the appropriate legal authority of that compacting state. 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 proceduresestablished under its bylaws. The financial accounts and reports, including the system of internal controls and procedures of the commission, shall be audited annually by anindependent certified public accountant. Upon the determination of the commission, but noless frequently than every three years, the review of the independent auditor shall includea management and performance audit of the commission. ntant. Upon the determination of the commission, but noless frequently than every three years, the review of the independent auditor shall includea management and performance audit of the commission. The commission shall make anannual report to the governor and legislature of the compacting states, which shall include areport of the independent audit. The commission’s internal accounts shall not be confidentialand such materials may be shared with the commissioner of any compacting state uponrequest; provided, however, that any work papers related to any internal or independentaudit and any information regarding the privacy of the individuals and insurers’ proprietaryinformation, including trade secrets, shall remain confidential. g. A compacting state shall not 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 thiscompact. 13. Article XIII — Compacting states, effective date, and amendment.a. Any state is eligible to become a compacting state.b. This compact shall become effective and binding upon legislative enactment of this compact into law by two compacting states, provided the ent.a. Any state is eligible to become a compacting state.b. This compact shall become effective and binding upon legislative enactment of this compact into law by two compacting states, provided the commission shall become effectivefor purposes of adopting uniform standards for reviewing, and giving approval or disapprovalof, products filed with the commission that satisfy applicable uniform standards only aftertwenty-six states are compacting states or, alternatively, by states representing greater thanforty percent of the premium volume for life insurance, annuity, disability income, andlong-term care insurance products, based on records of the national association of insurancecommissioners for the prior year. Thereafter, it shall become effective and binding as to anyother compacting state upon enactment of this compact into law by that state. c. Amendments to this compact may be proposed by the commission for enactment by the compacting states. An amendment shall not become effective and binding upon thecommission and the compacting states unless and until all compacting states enact theamendment into law. 14. Article XIV — Withdrawal, default, and termination.a. become effective and binding upon thecommission and the compacting states unless and until all compacting states enact theamendment into law. 14. Article XIV — Withdrawal, default, and termination.a. Withdrawal.(1) Once effective, this compact shall continue in force and remain binding upon each and Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0) §505A.1, INTERSTATE INSURANCE PRODUCT REGULATION COMPACT 10 every compacting state, provided that a compacting state may withdraw from this compactby enacting a statute specifically repealing the statute which enacted the compact into law. (2) The effective date of withdrawal is the effective date of the repealing statute. However, 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 theapproval is rescinded by the withdrawing state as provided in subparagraph (5). (3) The commissioner of the withdrawing state shall immediately notify the management committee in writing upon the introduction of legislation repealing this compact as provided in subparagraph (5). (3) The commissioner of the withdrawing state shall immediately notify the management committee in writing upon the introduction of legislation repealing this compact in thewithdrawing state. (4) The commission shall notify the other compacting states of the introduction of such legislation within ten days after its receipt of notice. (5) The withdrawing state is responsible for all obligations, duties, and liabilities incurred through the effective date of withdrawal, including any obligations, the performance ofwhich extend beyond the effective date of withdrawal, except to the extent those obligationsmay have been released or relinquished by mutual agreement of the commission and thewithdrawing state. The commission’s approval of products and advertisement prior to theeffective date of withdrawal shall continue to be effective and be given full force and effectin the withdrawing state, unless formally rescinded by the withdrawing state in the samemanner as provided by the laws of the withdrawing state for the prospective disapproval ofproducts or advertisement previously approved under state law. rescinded by the withdrawing state in the samemanner as provided by the laws of the withdrawing state for the prospective disapproval ofproducts or advertisement previously approved under state law. (6) Reinstatement following withdrawal of any compacting state shall occur upon the effective date of the withdrawing state reenacting the compact. b. Default.(1) If the commission determines that any compacting state has at any time defaulted in the performance of any of its obligations or responsibilities under this compact, the bylawsor duly promulgated rules or operating procedures, then, after notice and hearing as set forthin the bylaws, all rights, privileges, and benefits conferred by this compact on the defaultingstate shall be suspended from the effective date of default as fixed by the commission. Thegrounds for default include, but are not limited to, failure of a compacting state to perform itsobligations or responsibilities, and any other grounds designated in commission rules. Thecommission shall immediately notify the defaulting state in writing of the defaulting state’ssuspension, pending a cure of the default. ities, and any other grounds designated in commission rules. Thecommission shall immediately notify the defaulting state in writing of the defaulting state’ssuspension, pending a cure of the default. The commission shall stipulate the conditions andthe time period within which the defaulting state must cure its default. If the defaulting statefails to cure the default within the time period specified by the commission, the defaultingstate shall be terminated from this compact and all rights, privileges, and benefits conferredby this compact shall be terminated from the effective date of termination. (2) Product approvals by the commission or product self-certifications, or any advertisement in connection with such product, that are in force on the effective dateof termination shall remain in force in the defaulting state in the same manner as if thedefaulting state had withdrawn voluntarily pursuant to paragraph 'a'. (3) Reinstatement following termination of any compacting state requires a reenactment of this compact. c. Dissolution of compact.(1) This compact dissolves effective upon the date of the withdrawal or default of the compacting state which reduces membership in this uires a reenactment of this compact. c. Dissolution of compact.(1) This compact dissolves effective upon the date of the withdrawal or default of the compacting state which reduces membership in this compact to one compacting state. (2) Upon the dissolution of this compact, this compact becomes null and void and shall be of no further force or effect, and the business and affairs of the commission shall be woundup and any surplus funds shall be distributed in accordance with the bylaws. 15. Article XV — Severability and construction.a. The provisions of this compact shall be severable, and if any phrase, clause, sentence, or provision is deemed unenforceable, the remaining provisions of this compact shall beenforceable. b. The provisions of this compact shall be liberally construed to effectuate its purposes.16. Article XVI — Binding effect of compact and other laws.a. Other laws. Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0) (1) Nothing herein prevents the enforcement of any other law of a compacting state, except as provided in subparagraph (2). (2) For any product approved or certified to the commission, the rules, uniform standards, and any other requirements t of any other law of a compacting state, except as provided in subparagraph (2). (2) For any product approved or certified to the commission, the rules, uniform standards, and any other requirements of the commission shall constitute the exclusive provisionsapplicable to the content, approval, and certification of such products. For advertisement thatis subject to the commission’s authority, any rule, uniform standard, or other requirementof the commission which governs the content of the advertisement shall constitute theexclusive provision that a commissioner may apply to the content of the advertisement.Notwithstanding the foregoing, action taken by the commission shall not abrogate or restrict: (a) The access of any person to state courts.(b) Remedies available under state law related to breach of contract, tort, general consumer protection laws, or general consumer protection regulations that apply to the saleor advertisement of the product or other laws not specifically directed to the content of theproduct. (c) State law relating to the construction of insurance contracts.(d) The authority of the attorney general of the state, including but not limited to maintaining any ed to the content of theproduct. (c) State law relating to the construction of insurance contracts.(d) The authority of the attorney general of the state, including but not limited to maintaining any actions or proceedings, as authorized by law. (3) All insurance products filed with individual states shall be subject to the laws of those states. b. Binding effect of this compact.(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 mayissue advisory opinions regarding the meaning or interpretation in dispute. (4) 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 jurisdictionsought to be conferred by that provision upon the commission shall be ineffective as to thatcompacting state, and those lature of any compacting state, the obligations, duties, powers, or jurisdictionsought to be conferred by that provision upon the commission shall be ineffective as to thatcompacting state, and those obligations, duties, powers, or jurisdiction shall remain in thecompacting state and shall be exercised by the agency thereof to which those obligations,duties, powers, or jurisdiction are delegated by law in effect at the time this compact becomeseffective. 2003 Acts, ch 91, §54; 2003 Acts, ch 179, §74; 2004 Acts, ch 1110, §6 – 16; 2005 Acts, ch 70, §3; 2008 Acts, ch 1032, §201; 2009 Acts, ch 41, §263 Sat Dec 23 00:38:47 2023 Iowa Code 2024, Section 505A.1 (16, 0)
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