An Act To Join the Interstate Insurance Product Regulation Compact
Maine Legislature, Session 121, LD 1698
Committee: Insurance and Financial Services
Sponsors: LaFOUNTAIN, O'NEIL, DOUGLASS, MAYO, TURNER, CANAVAN, FISCHER, ROSEN

Legislative Document 
No. 1698 
S.P.630 
In Senate, December 17, 2003 
An Act To Join the Interstate Insurance Product Regulation 
Compact 
Submitted by the Department of Professional and Financial Regulation pursuant to Joint 
Rule 204. 
Received by the Secretary of the Senate on December 16, 2003. Referred to the Committee 
on Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered printed pursuant 
to Joint Rule 401. 
Presented by Senator LaFOUNTAIN of York. 
Cosponsored by Representative O'NEIL of Saco and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: DOUGLASS of Androscoggin, MAYO of Sagadahoc, TURNER of Cumberland, 
Representatives: CANAVAN of Waterville, FISCHER of Presque Isle, ROSEN of Bucksport, 
WOODBUR Y of Yarmouth. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 24·A MRSA c. 28 is enacted to read: 
CHAPTER 28 
INTERSTATE INSURANCE PRODUCT REGULATION COMPACT 
§2471. 
Short title -- Article 1 
This chapter 
may be 
known 
and cited as "the Interstate 
Insurance Product Regulation Compact." 
§2472. 
Interstate Insurance Product Regulation Compact 
established; pu~ses 
1. 
Compact established. 
Pursuant to terms and conditions 
of this chapter. the State seeks to join with other states and 
establish the Interstate Insurance Product Regulation Compact, 
referred to in this chapter as "the compact." and thus become a 
member 
of 
the 
Interstate 
Insurance 
Product 
Regulation 
Commission. 
The superintendent is designated to serve as the 
representative of this State to the commission. 
2. 
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, disability income and 
long-term care insurance products; 
B. 
To 
develop uniform standards for 
insurance products 
covered under the compact; 
C. 
To establish a central clearing house 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 
products covered under the compact; 
F. 
To create the Interstate Insurance Product Regulation 
Commission; and 
G. 
To perform these and such other related functions as may 
be consistent with the state regulation of the business of 
insurance. 
§2473. 
Definitions -- Article 2 
As 
used 
in this 
chapter, 
unless 
the 
context 
otherwise 
indicates, the following terms have the following meanings. 
1. 
Advertisement. 
"Advertisement" 
means 
any 
material 
designed to create public interest in a product or 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. 
2. 
Bylaws. 
"Bylaws" means the bylaws established by the 
commission for its governance or for directing or controlling the 
commission's actions or conduct. 
3. 
Compacting state. 
"Compacting state" means a state that 
has enacted the compact and that has not withdrawn pursuant to 
section 2485, subsection 1 or been terminated pursuant to section 
2485, subsection 2. 
4. 
Commission. 
"Commission" means the Interstate Insurance 
Product Regulation Commission established by the compact. 
5. 
Commissioner. 
"Commissioner" means the chief insurance 
regulatory official of a 
compacting state, including, but not 
limited 
to, 
commissioner, 
superintendent, 
director 
or 
administrator. 
6. 
Domiciliary state. 
"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. 
7. 
Insurer. 
"Insurer" means an entity licensed by a state 
to issue contracts of insurance for any of the lines of insurance 
covered by the compact. 
8. 
Management committee. 
"Management committee" means the 
management committee established under section 2476, subsection 5. 
9. 
Member. 
"Member" 
means 
the 
person 
chosen 
by 
a 
compacting state as its representative to the commission, or the 
member's designee. 
10. 
Noncompacting state. 
"Noncompacting state" means 
a 
state that is not a compacting state. 
11. 
Operating procedures. 
"Operating procedures" 
means 
procedures adopted by the commission implementing a rule, uniform 
standard or provision of the compact. 
12. 
Product. 
"Product" means 
the 
form of 
a 
policy or 
contract. including an 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. 
13. 
Rule. 
"Rule" 
means 
a 
statement 
of 
general 
or 
particular 
applicability 
and 
future 
effect 
adopted 
by 
the 
commission, including a uniform standard developed pursuant to 
section 2478, designed to implement. interpret or prescribe law 
or policy or describing the organization, procedure or practice 
reguirements of the commission, that has the force and effect of 
law in the compacting states. 
14. 
State. 
"State" means any state, district or territory 
of the United States of America. 
15. 
Third-party filer. 
"Third-party filer" means an entity 
that submits a product filing to the commission on behalf of an 
insurer. 
16. 
Uniform standard. 
"Uniform standard" means a standard 
adopted by the commission for a product line, pursuant to section 
2478, and includes all of the product reguirements in aggregate. 
Each uniform standard must be construed, whether the prohibition 
is 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 
is 
not 
unfair, 
ineguitable 
or 
against 
public 
policy 
as 
determined 
by 
the 
commission. 
§2474. 
Establishment of commission; venue -- Article 3 
1. 
Commission created. 
The compacting states hereby create 
and establish a 
joint public agency 
known 
as 
the Interstate 
Insurance Product Regulation Commission. 
The commission has the 
power to develop uniform standards for product lines, receive and 
provide prompt review of products filed and give approval to 
those product filings satisfying applicable uniform standards. 
It is not intended that the commission be the exclusive entity 
for 
receipt and 
review of 
insurance product filings 
in the 
State. 
This subsection does not prohibit an insurer from filing 
its product in a state where the insurer is licensed to conduct 
the business of insurance, and any such filing is subject to the 
laws of the state where filed. 
2. 
Body co~rate. The commission is a body corporate and 
politic and an instrumentality of the compacting states. 
3. 
Hot for profit. 
The 
commission is a not-for-profit 
entity, 
separate 
and distinct from 
the individual 
compacting 
states. 
4. 
Responsible for liabilities. 
The commission is solely 
responsible for its liabilities except as otherwise specifically 
provided in the compact. 
5. 
Venue. 
Proper and judicial proceedings by or against 
the commission must be brought solely and exclusively in a court 
of competent 
jurisdiction where the principal office of 
the 
commission is located. 
§2475. 
Powers of the commission 
Article 4 
The commission has the power: 
1. 
Promulgate rules. 
To 
promulgate rules, 
pursuant to 
section 2478, that have the force of law and are binding in the 
compacting states to the extent and in the manner provided in the 
compact; 
2. 
Uniform 
standards. 
To 
exercise 
its 
rule-making 
authority and establish reasonable uniform standards for products 
and advertisements, which have the force of law and are binding 
in the compacting states, but only for those products filed with 
the commission. 
A compacting state has the right to opt out of 
the uniform standard pursuant to section 2478 to the extent and 
in the 
manner 
provided in the 
compact. 
A uniform standard 
established 
by 
the 
commission 
for 
long-term 
care 
insurance 
products may provide either the same or greater protections for 
consumers as, but may 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, 
adopted 
by 
the 
National 
Association 
of 
Insurance Commissioners as of 2001. The commission shall consider 
whether any subseguent amendments to the National Association of 
Insurance Commissioners' 
Long-term Care Insurance Model Act or 
Long-term Care Insurance Model Regulation adopted as of 2001 by 
the National Association of Insurance Commissioners require the 
amendment of the uniform standards established by the commission 
for long-term care insurance products; 
3. 
Products: receive and review. 
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 to give approval of those products and rate filings 
that satisfy the applicable uniform standard. 
Approval by the 
commission has the force of law and is binding on the compacting 
states to the extent and in the manner provided in the compact; 
4. 
Advertisements. 
To receive and review in an expeditious 
manner 
advertisements 
relating 
to 
long-term 
care 
insurance 
products for which uniform standards have been adopted by the 
commission and give approval to all advertisements that satisfy 
the applicable uniform standard. 
For any product covered under 
the compact. other than long-term care insurance products, the 
commission has 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 mislead the public. 
The actions of commission 
as provided in this section have the force of law and are binding 
in the compacting states to the extent and in the manner provided 
in the compact; 
5. 
Self-certification process. 
To exercise its rule-making 
authority and designate products and advertisements that may be 
subject to 
a 
self-certification process without the need for 
prior approval by the commission; 
6. 
Operating 
procedures. 
To 
promulgate 
operating 
procedures pursuant to section 2478 
that are binding in the 
compacting states to the extent and in the manner provided in the 
compact; 
7. 
Legal 
proceedings. 
To 
bring 
and 
prosecute 
legal 
proceedings or actions 
in its 
name 
as 
the 
commission. 
The 
standing of a state insurance department to sue or be sued under 
applicable law is not affected by this subsection; 
8. 
Subpoenas. 
To iss1).e 5ub-£oenas requiring the attendance 
and testimony of witnesses and the production of evidence; 
9. 
Establish 
and 
maintain offices. 
To 
establish 
and 
maintain offices; 
10. 
Insurance: bonds. 
To purchase and maintain insurance 
and bonds; 
11. 
Personnel services. 
To borrow, accept or contract for 
services of personnel , including, but not limited to, employees 
of a compacting state; 
12. 
Employees; 
professionals; 
specialists. 
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. 
To establish the 
commission's personnel policies and programs relating to, but not 
limited to conflicts of interest, 
rates of 
compensation 
and 
qualifications of personnel; 
13. 
Accept donations. 
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, 
striving to avoid any appearance of impropriety: 
14. 
Hold property. 
To lease, purchase, accept appropriate 
gifts or donations of or otherwise to own, hold, improve or use 
any property, real, personal or mixed, striving at all times to 
avoid any appearance of impropriety: 
15. 
Sell property. 
To 
sell, 
convey, 
mortgage, 
pledge, 
lease, exchange, 
abandon or otherwise dispose of any property, 
real, personal or mixed; 
16. 
Filip~g~~f~e~e~s~. __ ~T~o~~r~e~m~i,~t~~f±i~l~i~n~g~~f~e~e~sL-t~o~c~o~m~p~a~c~t~i~n£g~Bs~t~a~t~e~s 
as may be set forth in the bylaws, rules or operating procedures: 
17. 
Enforce 
compliance. 
To 
enforce 
compliance 
of 
compacting 
states 
with 
rules, 
uniform 
standards, 
operating 
procedures and bylaws; 
18. 
Provide for dispute resolution. 
To provide for dispute 
resolution among compacting states; 
19. 
Advice 
relating 
to 
business 
in 
noncompacting 
jurisdictions. 
To advise compacting states on issues relating to 
insurers 
domiciled 
or 
doing 
business 
in 
noncompacting 
jurisdictions, consistent with the-purposes of the compact: 
2Q. 
Advice and training. 
To provide advice and training to 
those personnel in state insurance department§! responsible for 
product 
review 
and 
to 
be 
a 
resource 
for 
state 
insurance 
departments; 
21. 
Establish budget. 
To 
establish 
a 
budget 
and 
make 
expenditures: 
22. 
Borrow money. 
To borrow money; 
23. 
Appoint committees. 
To appoint committees, including 
advisory committees of members, state insurance regulators, 
stat~ 
legislators 
or 
their 
representatives, 
insurance 
industry 
and 
consumer representatives and any other interested persons as may 
be designated in the bylaws; 
24. 
Cooperation with law enforcement agencies. 
To provide 
information to and receive information from, 
and to cooperate 
with, law enforcement agencies; 
25. 
Corporate seal. 
To adopt and use a corporate seal; and 
26. 
Perform other functions. 
To perform functions other 
than those set out explicitly in this section as necessary or 
appropriate to achieve t.he purposes of the compact consistent 
with the state regulation of the business of insurance. 
§2476. 
Organization of the commission -- Article 5 
1. 
Membership. 
Each compacting state has one member. 
Each 
member must be qualified to serve in that capacity pursuant to 
applicable law of the compacting state. A member may be removed 
or suspended from office as provided by the law of the state from 
which 
the 
member 
is 
appointed. 
A vacancy 
occurring 
in 
the 
commission must be filled in accordance with the laws of the 
compacting state where the vacancy exists. 
This subsection may 
not be construed to affect the manner in which a compacting state 
determines the election or appointment and qualification of its 
own commissioner. 
2. 
One vote. 
Each member is entitled to one vote and has 
an opportunity to participate in the governance of the commission 
in accordance with the bylaws. 
Notwithstanding any provision of 
the 
compact 
to 
the 
contrary, 
action of 
the 
commission with 
respect to the promulgation of a uniform standard does not take 
effect unless 2/3 of the members vote in favor of the uniform 
standard. 
3. 
Bylaws. 
The commission shall, by a majority of the 
members, adopt 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: 
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 established under subsection 5; 
c. 
Providing reasonable standards and procedures: 
For 
the 
establishment 
and 
meetings 
of 
other 
committees; and 
(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 consist of 
a 
majority of commission members, ensuring reasonable advance 
notice of each meeting 
and providing for 
the right of 
citizens to attend each 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 
in whole or in part. 
As soon as practicable, the commission 
shall make public a copy of the vote to close the meeting 
revealing the vote of each 
member 
with 
no 
proxy votes 
allowed and votes taken during the meeting; 
E. 
Establishing 
the 
titles, 
duties, 
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 similar 
laws of any compacting state, the bylaws exclusively govern 
the personnel policies and programs of the commission; 
G. 
Promulgating a code of ethics to address permissible and 
prohibited acti vi ties of commission members and employees; 
and 
H. 
Providing a mechanism for winding up the operations of 
the commission and the eguitable disposition of any surplus 
funds that might exist after the termination of the compact 
after the payment or reserving of all of its debts 
and 
obligations. 
4. 
File bylaws with compacting states. 
The 
commission 
shall publish its bylaws in a convenient form and file a copy of 
the bylaws and a copy of any amendment to the bylaws with the 
appropriate agency or officer in each of the compacting states. 
5. 
Management committee. 
The commission shall establish a 
management committee. 
A. 
The management committee consists of no more than 14 
members as follows: 
(1) 
One member from each of the 6 compacting states 
with the largest premium 
volume 
for 
individual 
and 
group 
annuities 
and 
life, 
disability 
income 
and 
long-term care insurance products, determined from the 
records 
of 
the 
National 
Association 
of 
Insurance 
Commissioners for the prior year; 
(2) 
Four members from those compacting states with at 
least 2% of the market based on the premium volume 
described 
in 
subparagraph 
(1) 
other 
than 
the 
compacting states with 
the 
largest 
premium 
volume, 
selected on a rotating basis as provided in the bylaws; 
M.Q 
(3) 
Four members 
from those compacting states with 
less than 2% of the market based on the premium volume 
described in subparagraph 
(1) with one selected from 
each of the 4 zone regions of the National Association 
of Insurance Commissioners as provided in the bylaws. 
B. 
The management committee has such authority and duties 
as 
may 
be set forth in the bylaws, 
including, 
but not 
limited to: 
(1) 
Managing the affairs of the commission in a manner 
consistent 
with 
the 
bylaws 
and 
purposes 
of 
the 
commission; 
(2) 
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 review of elections 
made by a 
compacting state to opt out of a 
uniform 
standard. 
A uniform standard may not be submitted to 
the compacting states for adoption unless approved by 
2/3 of the members of the management committee; 
(3) 
Overseeing the offices of the commission; and 
(4) 
Planning. 
implementing 
and 
coordinating 
communications and activities with other state, federal 
and local government organizations in order to advance 
the goals of the commission. 
C. 
The commission shall elect annually its officers from 
the management committee, with each haying such author i ty 
and duties, as specified in the bylaws. 
D. 
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. 
6. 
Legislative~lImittee. 
A legislative committee of state 
legislators or their designees is established to monitor the 
operations of, 
and 
make 
recommendations 
to, 
the 
commission, 
including the management committee. 
The manner of selection and 
term of any legislative committee member is set by 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. 
7. 
Adyisory cOllmittees. 
The commission shall establish 2 
advisory committees, 
one 
composed of 
consumer representatives 
independent of the insurance industry and the other composed of 
insurance industry representatives. 
8. 
Additional 
advisory cOllmittees. 
The 
commission 
may 
establish advisory committees in addition to those described in 
subsection 7 as its bylaws may provide for the carrying out of 
its functions. 
9. 
Corporate records of the commission. 
The 
commission 
shall maintain its corporate books and records in accordance with 
the bylaws. 
10. 
Qualified iDDunity. defense and indemnification. 
The 
members, 
officers, 
executive 
director, 
employees 
and 
representatives 
of 
the 
commission 
are 
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 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. 
Nothing in this subsection may be 
construed to protect any person from suitor liability for any 
damage, loss, injury or liability caused by the intentional or 
willful and wanton misconduct of that person. 
11. 
Defend. 
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 of any actual or alleged act, error or omission that 
occurred within the scope of commission employment. duties or 
responsibilities, or that the l?erson against whom the claim is 
made had a reasonable basis for believing occurred wi thin the 
scope of commission employment, duties or responsibilities, as 
long as the actual or alleged act, error or omission did not 
result 
from that person's intentional or willful 
and 
wanton 
misconduct. 
Nothing in this subsection may 
be 
construed to 
prohibit that person from retaining counsel. 
12. 
Indemnification. 
The commission shall indemnify and 
hold harmless any member, officer, executive director, employee 
or 
representative 
of 
the 
commission 
for 
the 
amount 
of 
any 
settlement or 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 
or 
responsibilities. or that such person had a reasonable basis for 
believing occurred within the scope of commission eml?loyment, 
duties or responsibilities, as long as the actual or alleged act, 
error or omission did not result from the intentional or willful 
and wanton misconduct of that person. 
§2477. 
Meetings; acts of commission -- Article 6 
1. 
Meetings. 
The 
commission shall meet 
and 
take 
such 
actions as are consistent with the provisions of this compact and 
the bylaws. 
2. 
Participate at meetings. 
Each member of the commission 
has the right and power to cast the vote to which the member's 
compacting state is entitled and to participate in the business 
and affairs of the commission. 
A member shall vote in l?erson or 
by such other means as provided in the bylaws. 
The bylaws may 
provide for members' participation in meetings by telephone or 
other means of communication. 
3. 
Annual meeting. 
The commission shall meet at least once 
dur ing each calendar year. 
Additional meetings are held as set 
forth in the bylaws. 
§2478. 
Rules and operating procedures, rule-making functions of 
the commission and opting out of uniform standards --
Article 7 
1. 
Rule-making authority. 
The commission shall promulgate 
reasonable 
rules. 
including 
uniform 
standards 
and 
operating 
Page ll-LR2485(1) 
.. 
procedures, in order to effectively and efficiently achieve the 
purposes of this compact. 
Notwithstanding this subsection, in 
the event the commission exercises its rule-making authority in a 
manner that is beyond the scope of the purposes of this chapter 
or the powers granted under this chapter, then such an action by 
the commission is invalid and has no effect. 
2. 
Rule-making procedure. 
Rules and operating procedures 
must be made pursuant to a rule-making process that conforms to 
the Model State Administrative Procedure Act of 1981 as amended, 
as 
may 
be 
appropriate to 
the operations 
of 
the 
commission. 
Before the commission adopts a uniform standard, the commission 
shall give written notice 
to 
the 
relevant state legislative 
committee in each compacting state responsible 
for 
insurance 
issues of its intention to adopt the uniform standard. 
The 
commission in adopting a uniform standard shall consider fully 
all submitted materials and issue a concise explanation of its 
decision. 
3. 
Effective date and opting out of uniform standard. 
A 
uniform standard becomes effective 90 days after its promulgation 
by the 
commission or 
such later date as 
the 
commission may 
determine. 
A compacting state may opt out of a uniform standard 
as provided in subsection 4. 
"Opt out" means any action by a 
compacting 
state 
to 
decline 
to 
adopt 
or 
participate 
in 
a 
promulgated uniform standard. 
All other 
rules 
and operating 
procedures, and amendments thereto, become effective as of the 
date specified in each rule, operating procedure or amendment. 
4. 
Procedure for opting out. 
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's administrative procedure act. 
If 
a 
compacting state 
elects to opt out of a uniform standard by regulation, it must 
give written notice to the commission no later than 10 business 
days after the uniform standard is promulgated, or at the time 
the state becomes 
a 
compacting state, and must find that the 
uniform standard does not provide reasonable protections to the 
citizens of the state, given the conditions in the state. 
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 that warrant a departure from the uniform 
standa~d and determining that the uniform standard would not 
reasonably protect the citizens of the state. 
The commissioner 
must consider and balance the following factors and find that the 
conditions in the state and needs of the citizens of the state 
outweigh: 
A. 
The intent of the legislature to participate in, and the 
benefits of, an interstate agreement to establish national 
Page l2-LR2485(1) 
uniform consumer protections for the products subject to 
this chapter; and 
B. 
The presumption that a uniform standard adopted by the 
commission provides reasonable protections to consumers of 
the relevant product. 
Notwithstanding this subsection, a compacting state may at the 
time of its enactment of this compact. prospectively opt out of 
all uniform standards involving long-term care insurance products 
by expressly providing for such an option in the enacted compact, 
and opting out may not be treated as a material variance in the 
offer or acceptance of any state to participate in this compact. 
Opting out is effective at the time of enactment of this compact 
. by the compacting state and applies to all existing uniform 
standards involving long-term care insurance products and those 
subsequently promulgated. 
5. 
Effect of opting out. 
If a compacting state elects to 
opt out of 
a 
uniform standard, 
the uniform standard remains 
applicable in the compacting state electing to opt out until such 
time as the legislation opting out is enacted into law or the 
regulation opting out becomes effective. 
Once the opting out of a uniform standard by a compacting state 
becomes effective as provided under the laws of that state, the 
uniform standard has no further force and effect in that state 
unless and until the legislation or regulation implementing the 
opting out is repealed or otherwise becomes ineffective under the 
laws of the state. 
If a compacting state opts out of a uniform 
standard after the uniform standard has been made effective in 
that state, the opting out has the same prospective effect as 
provided under section 2485 for withdrawals. 
6. 
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 opting out is 
pending, 
the compacting state may petition the commission, at 
least 15 days before the effective date 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 
opting out is being pursued in a reasonable manner and there is a 
likelihood of success. 
If a stay is granted or extended by the 
commission, the stay or extension may postpone the effective date 
by up to 90 days, unless the stay is affirmatively extended by 
the commission. 
A stay may not be permitted to remain in effect 
for more than one year unless the compacting state can show 
extraordinary circumstances that warrant 
a 
continuance of the 
stay, including, but not limited to, the existence of a legal 
challenge that prevents the compacting state from opting out. 
A 
Page l3-LR2485(1) 
stay may be terminated by the commission upon notice that the 
rule-making process has been terminated. 
7. 
Petition for 
judicial 
review of rule 
or 
operating 
procedure. 
Not later than 30 days after a 
rule or operating 
procedure is promulgated, 
any person may file 
a petition for 
judicial review of the rule or operating procedure. 
The filing 
of such a petition does not stay or otherwise prevent the rule or 
operating procedure 
from becoming effective unless 
the court 
finds 
that 
the 
petitioner 
has 
a 
substantial 
likelihood 
of 
success. 
The court shall give deference to the actions of the 
commission consistent with applicable law and may not find the 
rule or operating procedure 
to 
be 
unlawful if the 
rule 
or 
operating procedure 
represents 
a 
reasonable exercise 
of 
the 
commission's authority. 
§2479. 
Commission records and enforcement -- Article 8 
1. 
Public 
inspection 
and 
copying 
of 
information 
and 
records. 
The 
commission 
shall 
promulgate 
rules 
establishing 
conditions and procedures for public inspection and copying of 
its information and official records, 
except 
information and 
records involving the privacy of individuals and insurers' trade 
secrets. 
The commission may promulgate additional rules under 
which it may 
make 
available to federal 
and state agencies, 
including 
law 
enforcement 
agencies. 
records 
and 
information 
otherwise exempt from disclosure, and may enter into agreements 
with such agencies to receive or exchange information or records 
subject to nondisclosure and confidentiality provisions. 
2. 
Laws pertaining to confidentiality or nondisclosure. 
Except as to privileged records, data and information, the laws 
of 
any 
compacting 
state 
pertaining 
to 
confidentiality 
or 
nondisclosure do not relieve any compacting state commissioner of 
the duty to disclose any relevant records, data or information to 
the 
commission. 
Disclosure 
to 
the 
commission 
may 
not 
be 
considered 
to waive 
or 
otherwise 
affect 
any 
confidentiality 
requirement. 
Except 
as 
otherwise expre.ssly provided in this 
chapter, the commission is not subject to the compacting state's 
laws pertaining to confidentiality and nondisclosure with respect 
to records, data and information in its possession. 
Confidential 
information of the commission remains confidential after such 
information is provided to any commissioner. 
3. 
Compliance. 
The 
commission shall monitor 
compacting 
states for compliance with duly adopted bylaws, rules, including 
uniform 
standards, 
and 
operating procedures. 
The 
commission 
shall notify any noncomplying compacting state in writing of its 
noncompliance 
with 
commission 
bylaws. 
rules 
or 
operating 
procedures. 
If a noncomplying compacting state fails to remedy 
its noncompliance 
noncompliance, the 
section 2485. 
within the time specified in the notice of 
compacting state is in default as set forth in 
4. 
Commissioner' s authority to oversee market regulation. 
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's authority to oversee the 
market regulation of the activities of the insurer in accordance 
with 
the 
provisions 
of 
the 
state's 
law. 
The 
commissioner's 
enforcement of compliance with the compact is governed by the 
following provisions. 
A.. 
With respect to the commissioner's market regulation of 
a product or advertisement that is approved by or certified 
to 
the 
commission, 
the 
content 
of 
the 
product 
or 
advertisement 
does 
not 
constitute 
a 
violation 
of 
the 
provisions, standards or requirements of the compact except 
upon a final order of the commission issued at the request 
of a commissioner after prior notice to the insurer and an 
opportunity for hearing before the commission. 
B. 
Before a commissioner may bring an action for violation 
of any provision, standard or requirement of the compact 
relating to the content of an advertisement not approved by 
or 
certified to 
the 
commission. 
the 
commission, 
or 
an 
authorized commission officer or employee, 
must authorize 
the 
action. 
However. 
authorization 
pursuant 
to 
this 
paragraph 
does 
not 
require 
notice 
to 
the 
insurer, 
opportunity 
for 
hearing 
or 
disclosure 
of 
requests 
for 
authorization or records of the commission's action on such 
requests. 
§2480. 
Dispute resolution -- Article 9 
The commission shall attempt. upon the request of a member. 
to resolve any disputes or other issues that are subject to this 
compact and that may arise between 2 or more compacting states, 
or between compacting states and noncompacting states. and the 
commission shall promulgate an operating procedure providing for 
resolution of such disputes. 
§2481. 
Product filing and approval -- Article 10 
1. 
Filing 
of 
product 
with 
commission. 
Insurers 
and 
3rd-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 
this 
chapter 
may 
be 
construed to restrict or otherwise prevent an insurer from filing 
its product with the insurance department in any state where the 
ins11,rer is licensed to conduct the business of insurance, 
and 
such filing is subject to the laws of the states where filed. 
2. 
Commission to establish filing and review processes. 
The 
commission shall establish appropriate filing 
and 
review 
processes 
and 
procedures 
pursuant 
to 
commission 
rules 
and 
operating procedures. 
Notwithstanding any other provision of 
this chapter, the commission shall promulgate rules to establish 
conditions and procedures for providing public access to product 
filing information. 
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 medical and 
financial information and trade secrets that may be contained in 
a product filing or supporting information. 
3. 
Product approved by commission may be sold in certain 
compacting states. 
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. 
§2482. 
Review of commission decisions regarding filings --
Article 11 
1. 
Appeal to review panel appointed by commission. 
Not 
later than 30 days after the commission has given notice of a 
disapproved product or advertisement filed with the commission, 
the insurer or 3rd-party filer whose filing was disapproved may 
appeal the determination to 
a 
review panel appointed by the 
commission. 
The commission shall promulgate rules to establish 
procedures for appointing a review panel 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 accordance with the law is subject 
to judicial review in accordance with section 2474, subsection 5. 
2. 
Commission may monitor. 
review and reconsider. 
The 
commission 
has 
authority 
to 
monitor, 
review 
and 
reconsider 
products 
and 
advertisements 
subsequent 
to 
their 
filing 
or 
approval 
upon 
a 
finding that the product does 
not meet 
the 
relevant uniform standard. 
Where appropriate, the commission may 
withdraw or modify its approval after proper notice and hearing, 
subject to the appeal process in subsection 1. 
§2483. 
Finance -- Article 12 
l. 
Commission 
shall 
fund 
its 
establishment 
and 
organization. 
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 
commission may accept contributions and other forms of funding 
from 
the 
National 
Association 
of 
Insurance 
Commissioners, 
compacting states and other sources. 
Contributions and other 
forms of funding from other sources must be of such a nature that 
the independence of the commission concerning the performance of 
its duties is not compromised. 
2. 
Connission shall collect filing fee. 
The 
commission 
shall collect a filing fee from each insurer and 3rd-party filer 
filing a product with the commission to cover the cost of the 
operations and activities of the commission and its staff in a 
total amount sufficient to cover the commission's annual budget. 
3. 
Notice 
and 
connent 
for 
budget 
approval. 
The 
commission's budget for a fiscal year may not be approved until 
it has been subject to notice and comment as set forth in section 
2478. 
4. 
Connission exempt 
from taxation. 
The 
commission is 
exempt from all taxation in and by the compacting states. 
5. 
Connission authority to pledge credit of compacting 
state limited. 
The commission may not pledge the credit of any 
compacting state, 
except 
by 
and 
with 
the 
appropriate 
legal 
authority of that compacting state. 
6. 
Connission to keep complete and accurate accounts. 
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 
are 
subject 
to 
the 
accounting 
procedures 
established 
under 
its 
bylaws. 
The 
financial accounts and reports, including the system of internal 
controls 
and 
procedures 
of 
the 
commission, 
must 
be 
audited 
annually by an independent certified public accountant. 
Upon the 
determination of the commission, 
but no less frequently than 
every 3 years, the review of the independent auditor must include 
a 
management 
and 
performance 
audit 
of 
the 
commission. 
The 
commission shall 
make 
an 
annual 
report to 
the governor 
and 
legislature of each compacting state, which must include a report 
of the independent audit. 
The commission's internal accounts are 
not confidential 
and 
such materials 
may 
be 
shared with the 
commissioner of any compacting state upon request, except that 
any work papers related to any internal or independent audit and 
any 
information 
regarding 
the 
privacy 
of 
individuals 
and 
insurers' proprietary information, including trade secrets, must 
remain confidential. 
1. 
Compacting states do not have ownership of commission 
property. 
A compacting state does 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 this 
compact. 
§2484. 
Compacting states. effective date and amendment --
Article 13 
1. 
Any state eligible to become compacting state. 
Any 
state is eligible to become a compacting state. 
2. 
Effective dates for compact and commission. 
The compact 
becomes effective and binding upon legislative enactment by 2 
compacting states. 
The commission becomes effective for purposes 
of adopting uniform standards for, reviewing and giving approval 
or disapproval of products filed with the commission only after 
states are compacting states or, alternatively, after states 
representing 
more 
than 
40% 
of 
the 
premium 
volume 
for 
life 
insurance, 
annuity, 
disability 
income 
and 
long-term 
care 
insurance products, based on records of the National Association 
of Insurance Commissioners for the prior year, are compacting 
states. 
Thereafter, it becomes effective and binding as to any 
other compacting state upon enactment of the compact into law by 
that state. 
3. 
Amendments to the compact. 
Amendments to the compact 
may be proposed by the commission for enactment by the compacting 
states. 
An amendment does not become effective and binding upon 
the commission and the compacting states unless and until all 
compacting states enact the amendment into law. 
§2485. 
Withdrawal. default and termination -- Article 14 
1. 
Withdrawal. 
The following provisions govern withdrawal 
from the compact. 
A. 
Once 
effective, 
the 
compact 
continues 
ln force 
and 
remains binding upon each compacting state. 
A compacting 
state may withdraw from the compact by enacting a statute 
specifically repealing the statute that enacted the compact. 
B. 
The effective date of withdrawal is the effective date 
of the repealing law. 
However, 
the withdrawal 
does 
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 
the 
approval 
is 
rescinded 
by 
the 
withdrawing 
state 
as 
provided in paragraph E. 
Page l8-LR2485(l) 
C. 
The 
commissioner 
of 
the 
withdrawing 
state 
shall 
immediately notify the management committee in writing upon 
the introduction of legislation repealing this compact in 
the withdrawing state. 
D. 
The commission shall notify the other compacting states 
of the introduction of such legislation within 10 days after 
it receives notice under paragraph C. 
E. 
The 
withdrawing 
state 
is 
responsible 
for 
all 
obligations, 
duties 
and liabilities incurred through the 
effective date of withdrawal, including any obligations the 
performance of which extend beyond the effective date of 
withdrawal, except to the extent those obligations may have 
been released or relinquished by mutual agreement of the 
commission 
and 
the 
withdrawing state. 
The 
commission's 
approval 
of 
products 
and 
advertisements 
prior 
to 
the 
effective date of withdrawal continues to be effective and 
must be given full force and effect in the withdrawing state 
unless formally rescinded by the withdrawing state in the 
same manner as provided by the laws of the withdrawing state 
for 
the 
prospective 
disapproval 
of 
products 
or 
advertisements previously approved under state law. 
F. 
Reinstatement 
following withdrawal 
of 
any 
compacting 
state occurs 
upon the effective date of the withdrawing 
state's reenacting the compact. 
2. 
Default. 
The following provisions govern default. 
A. 
If the commission determines that a compacting state has 
defaulted in the performance of any of its obligations or 
responsibilities 
under 
this 
compact, 
the 
bylaws 
or 
duly 
promulgated 
rules 
or 
operating 
procedures, 
then, 
after 
notice and hearing as set forth in the bylaws, all rights, 
privileges and benefits conferred by this compact on the 
defaulting state are suspended from the effective date of 
default as fixed by the commission. 
The grounds for default 
include, but are not limited to, failure of a 
compacting 
state to perform its obligations or responsibilities, and 
any 
other 
grounds 
designated 
in 
commission 
rules. 
The 
commission shall immediately notify the defaulting state in 
writing of the defaulting state's suspension pending a cure 
of 
the 
default. 
The 
commission 
shall 
stipulate 
the 
conditions and the time period wi thin which the defaulting 
state must cure its default. 
If the defaulting state fails 
to cure the default within the time period specified by the 
commission, the defaulting state must be terminated from the 
compact and all rights, privileges and benefits conferred by 
this 
compact 
are 
terminated 
from 
the effective date 
of 
termination. 
B. 
Product 
approvals 
by 
the 
commission 
or 
product 
self-certifications, or any advertisement in connection with 
such a product, that are in force on the effective date of 
termination remain in force in the defaulting state in the 
same 
manner 
as if 
the 
defaulting 
state 
had 
withdrawn 
voluntarily pursuant to subsection 1. 
C. 
Reinstatement 
following 
termination 
of 
a 
compacting 
state reguires a reenactment of the compact. 
3. 
Dissolution of compact. 
The following provisions govern 
the dissolution of the compact. 
A. 
The compact dissolves upon the date of the withdrawal or 
default of the compacting state that reduces membership in 
the compact to one compacting state. 
B. 
Upon 
the 
dissolution of 
this 
compact, 
the 
compact 
becomes void and is of no further effect, and the business 
and affairs· of the commission must be wound up and any 
surplus funds must be distributed in accordance with the 
bylaws. 
§2486. 
Construction 
Article 15 
The provisions of this compact must be liberally construed 
to effectuate its purposes. 
§2487. 
Binding effect of compact and other laws -- Article 16 
1. 
Laws of compacting state. 
Nothing in this 
chapter 
prevents the enforcement of any laws of a compacting state other 
than this compact, except as provided in subsection 2. 
2. 
Exclusive prov1s1ons. 
For any product 'al?l?roved by or 
certified to the commission, the rules, uniform standards and any 
other reguirements of the commission constitute the exclusive 
l?rovisions apl?licable to the content, approval and certification 
of that product. 
For an advertisement that is subject to the 
commission's 
authority, 
any 
rule, 
uniform 
standard 
or 
other 
reguirement of the commission that governs the content of the 
advertisement 
constitutes 
the 
exclusive 
provision 
that 
a 
commissioner 
may 
apply 
to the 
content of 
the 
advertisement. 
Notwithstanding 
this 
subsection, 
an 
action 
taken 
by 
the 
commission may 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 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 any actions or 
proceedings, as authorized by law. 
3. 
Insurance 
products 
subject to 
laws. 
All 
insurance 
products filed with individual states are subject to the laws of 
·those states. 
4. 
Binding effect of compact. 
The compact is binding as 
follows. 
A. 
All lawful actions of the commission, 
including all 
rules 
and 
operating 
procedures 
promulgated 
by 
the 
commission, are binding upon the compacting states. 
B. 
All agreements between the commission and the compacting 
states are binding in accordance with their terms. 
C. 
Upon the reguest 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. 
D. 
In the event any provision of this compact exceeds the 
constitutional 
limits 
imposed 
on 
the 
legislature 
of 
a 
compacting 
state, 
the 
obligation, 
duty, 
power 
or 
jurisdiction sought to be conferred by that provision upon 
the commission is ineffective as to that compacting state, 
and that obligation, duty, power or jurisdiction remains in 
the compacting state and must be exercised by the agency 
thereof 
to 
which 
that 
obligation, 
duty, 
power 
or 
jurisdiction is delegated by law in effect at the time this 
compact becomes effective. 
Sec. 2. Legislative intent. 
The 
text 
and 
numbering of 
the 
Interstate Insurance Product Regulation Compact have been changed 
to conform to the Maine statutory conventions. 
The changes are 
technical in nature, and it is the intent of the Legislature that 
this Act be interpreted as substantively the same as the original 
compact. 
This 
Regulation 
Commission 
products. 
SUMMARY 
bill 
establishes 
the 
Compact 
and 
the 
to facilitate the 
Interstate 
Insurance 
Product 
Interstate 
Product 
Regulation 
regulation of certain insurance