‘‘(h) STATES’ AUTHORITY TO SUE.—Nothing in this 
section shall affect the authority of any State to bring ac-
tion in any Federal or State court. 
‘‘(i) GENERALLY APPLICABLE LAWS.—Nothing in 
this section shall be construed to affect the applicability 
of State laws generally applicable to persons or corpora-
tions. 
‘‘SEC. 2797. PRIMARY STATE MUST MEET FEDERAL FLOOR 
BEFORE ISSUER MAY SELL INTO SECONDARY 
STATES. 
‘‘A health insurance issuer may not offer, sell, or 
issue individual health insurance coverage in a secondary 
State if the primary State does not meet the following re-
quirements: 
‘‘(1) The State insurance commissioner must 
use a risk-based capital formula for the determina-
tion of capital and surplus requirements for all 
health insurance issuers that are not health mainte-
nance organizations (as defined in section 1301(a)). 
For such health maintenance organizations the State 
must have legislative or regulatory capital and sur-
plus requirements. 
‘‘(2) The State must have legislation or regula-
tions in place establishing an independent review 
process for individuals who are covered by individual
health insurance coverage unless the issuer provides 
an independent review mechanism functionally equiv-
alent (as determined by the primary State insurance 
commissioner or official) to that prescribed in the 
‘Health Carrier External Review Model Act’ of the 
National Association of Insurance Commissioners for 
all individuals who purchase insurance coverage 
under the terms of this part. 
‘‘SEC. 2798. ENFORCEMENT. 
‘‘(a) IN GENERAL.—Subject to subsection (c), the 
primary State has sole jurisdiction to enforce covered laws 
in primary and secondary States. 
‘‘(b) FAILURE TO COMPLY WITH PRIMARY STATE 
LAW.—In the case of individual health insurance coverage 
offered in a secondary State that fails to comply with cov-
ered laws of the primary State, the applicable State au-
thority of the secondary State shall notify, in writing, the 
applicable State authority of the primary State of sus-
pected violations of the primary State’s laws. 
‘‘(c) FAILURE OF A PRIMARY STATE AUTHORITY TO 
TAKE ACTION.—The applicable State authority of the sec-
ondary State may initiate regulatory proceedings to en-
force the covered laws of the primary State if the applica-
ble State authority of the primary State—
‘‘(1) does not initiate regulatory or legal pro-
ceedings within 30 days; or 
‘‘(2) fails to maintain an active investigation, 
negotiation, regulatory, or judicial proceeding for 
any 30-day period. 
‘‘(d) FAILURE TO RESOLVE DISPUTE.—If upon initi-
ating proceedings under subsection (c), the applicable 
State authority of the secondary State is unable to resolve 
concerns related to suspected violations of covered laws of 
the primary State, such applicable secondary State au-
thority may bring action in a court of appropriate jurisdic-
tion. 
‘‘(e) COURT INTERPRETATION.—In reviewing action 
initiated by the applicable secondary State authority, the 
court of appropriate jurisdiction shall apply the covered 
laws of the primary State.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to individual health insurance 
coverage offered, issued, or sold after the date of the en-
actment of this Act. 
SEC. 5. SEVERABILITY. 
If any provision of the Act or the application of such 
provision to any person or circumstance is held to be un-
constitutional, the remainder of this Act and the applica-
tion of the provisions of such to any other person or cir-
cumstance shall not be affected. 
Æ