{"data":{"id":"us-ok/okla.-stat.-tit.-36-36-7004","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 36, § 36-7004","heading":"Interstate Insurance Product Regulation Compact","body":"A. Pursuant to terms and conditions of this act, the State of\n\nOklahoma seeks to join with other states and establish the\n\nInterstate Insurance Product Regulation Compact, and thus become a\n\nmember of the Interstate Insurance Product Regulation Commission.\n\nB. The Insurance Commissioner of the State of Oklahoma is\n\nhereby designated to serve as the representative of this state to\n\nthe Commission.\n\nC. The Governor is hereby authorized and directed to execute a\n\nCompact on behalf of this state with any other state or states\n\nlegally joining therein in the form substantially as follows:\n\nINTERSTATE INSURANCE PRODUCT REGULATION COMPACT\n\nARTICLE I. PURPOSES\n\nThe purposes of this Compact are, through means of joint and\n\ncooperative action among the compacting states:\n\n1. To promote and protect the interest of consumers of\n\nindividual and group annuity, life insurance, disability income and\n\nlong-term care insurance products;\n\n2. To develop uniform standards for insurance products covered\n\nunder the Compact;\n\n3. To establish a central clearinghouse to receive and provide\n\nprompt review of insurance products covered under the Compact and,\n\nin certain cases, advertisements related thereto, submitted by\n\ninsurers authorized to do business in one or more compacting states;\n\n4. To give appropriate regulatory approval to those product\n\nfilings and advertisements satisfying the applicable uniform\n\nstandard;\n\n5. To improve coordination of regulatory resources and\n\nexpertise between state insurance departments regarding the setting\n\nof uniform standards and review of insurance products covered under\n\nthe Compact;\n\n6. To create the Interstate Insurance Product Regulation\n\nCommission; and\n\n7. To perform these and such other related functions as may be\n\nconsistent with the state regulation of the business of insurance.\n\nARTICLE II. DEFINITIONS\n\nFor purposes of this Compact:\n\n1. “Advertisement” means any material designed to create public\n\ninterest in a product, or induce the public to purchase, increase,\n\nmodify, reinstate, borrow on, surrender, replace or retain a policy,\n\nas more specifically defined in the rules and operating procedures\n\nof the Commission;\n\n2. “Bylaws” means those bylaws established by the Commission\n\nfor its governance, or for directing or controlling the Commission’s\n\nactions or conduct;\n\n3. “Compacting state” means any state which has enacted this\n\nCompact legislation and which has not withdrawn pursuant to Section\n\n1 of Article XIV of this Compact, or been terminated pursuant to\n\nSection 2 of Article XIV of this Compact;\n\n4. “Commission” means the “Interstate Insurance Product\n\nRegulation Commission” established by this Compact;\n\n5. “Commissioner” means the chief insurance regulatory official\n\nof a state including, but not limited to, commissioner,\n\nsuperintendent, director or administrator;\n\n6. “Domiciliary state” means the state in which an insurer is\n\nincorporated or organized or, in the case of an alien insurer, its\n\nstate of entry;\n\n7. “Insurer” means any entity licensed by a state to issue\n\ncontracts of insurance for any of the lines of insurance covered by\n\nthis act;\n\n8. “Member” means the person chosen by a compacting state as\n\nits representative to the Commission, or his or her designee;\n\n9. “Noncompacting state” means any state which is not at the\n\ntime a compacting state;\n\n10. “Operating procedures” means procedures promulgated by the\n\nCommission implementing a rule, uniform standard or a provision of\n\nthis Compact;\n\n11. “Product” means the form of a policy or contract, including\n\nany application, endorsement, or related form which is attached to\n\nand made a part of the policy or contract, and any evidence of\n\ncoverage or certificate, for an individual or group annuity, life\n\ninsurance, disability income or long-term care insurance product\n\nthat an insurer is authorized to issue;\n\n12. “Rule” means a statement of general or particular\nform of a policy or contract, including\n\nany application, endorsement, or related form which is attached to\n\nand made a part of the policy or contract, and any evidence of\n\ncoverage or certificate, for an individual or group annuity, life\n\ninsurance, disability income or long-term care insurance product\n\nthat an insurer is authorized to issue;\n\n12. “Rule” means a statement of general or particular\n\napplicability and future effect promulgated by the Commission,\n\nincluding a uniform standard developed pursuant to Article VII of\n\nthis Compact, designed to implement, interpret, or prescribe law or\n\npolicy or describing the organization, procedure, or practice\n\nrequirements of the Commission, which shall have the force and\n\neffect of law in the compacting states;\n\n13. “State” means any state, district or territory of the\n\nUnited States of America;\n\n14. “Third-party filer” means an entity that submits a product\n\nfiling to the Commission on behalf of an insurer; and\n\n15. “Uniform standard” means a standard adopted by the\n\nCommission for a product line, pursuant to Article VII of this\n\nCompact, and shall include all of the product requirements in\n\naggregate; provided, that each uniform standard shall be construed,\n\nwhether express or implied, to prohibit the use of any inconsistent,\n\nmisleading or ambiguous provisions in a product and the form of the\n\nproduct made available to the public shall not be unfair,\n\ninequitable or against public policy as determined by the\n\nCommission.\n\nARTICLE III. ESTABLISHMENT OF THE COMMISSION AND VENUE\n\n1. The compacting states hereby create and establish a joint\n\npublic agency known as the “Interstate Insurance Product Regulation\n\nCommission”. Pursuant to Article IV of this Compact, the Commission\n\nwill have the power to develop uniform standards for product lines,\n\nreceive and provide prompt review of products filed therewith, and\n\ngive approval to those product filings satisfying applicable uniform\n\nstandards; provided, it is not intended for the Commission to be the\n\nexclusive entity for receipt and review of insurance product\n\nfilings. Nothing herein shall prohibit any insurer from filing its\n\nproduct in any state wherein the insurer is licensed to conduct the\n\nbusiness of insurance; and any such filing shall be subject to the\n\nlaws of the state where filed.\n\n2. The Commission is a body corporate and politic, and an\n\ninstrumentality of the compacting states.\n\n3. The Commission is solely responsible for its liabilities\n\nexcept as otherwise specifically provided in this Compact.\n\n4. Venue is proper and judicial proceedings by or against the\n\nCommission shall be brought solely and exclusively in a court of\n\ncompetent jurisdiction where the principal office of the Commission\n\nis located.\n\nARTICLE IV. POWERS OF THE COMMISSION\n\nThe Commission shall have the following powers:\n\n1. To promulgate rules, pursuant to Article VII of this\n\nCompact, which shall have the force and effect of law and shall be\n\nbinding in the compacting states to the extent and in the manner\n\nprovided in this Compact;\n\n2. To exercise its rulemaking authority and establish\n\nreasonable uniform standards for products covered under the Compact,\n\nand advertisement related thereto, which shall have the force and\n\neffect of law and shall be binding in the compacting states, but\n\nonly for those products filed with the Commission; provided, that a\n\ncompacting state shall have the right to opt out of such uniform\n\nstandard pursuant to Article VII of this Compact, to the extent and\n\nin the manner provided in this Compact; and provided further, that\n\nany uniform standard established by the Commission for long-term\n\ncare insurance products may provide the same or greater protections\n\nfor consumers as, but shall not provide less than, those protections\n\nset forth in the National Association of Insurance Commissioners’\nxtent and\n\nin the manner provided in this Compact; and provided further, that\n\nany uniform standard established by the Commission for long-term\n\ncare insurance products may provide the same or greater protections\n\nfor consumers as, but shall not provide less than, those protections\n\nset forth in the National Association of Insurance Commissioners’\n\nLong-Term Care Insurance Model Act and Long-Term Care Insurance\n\nModel Regulation, respectively, adopted as of 2001. The Commission\n\nshall consider whether any subsequent amendments to the NAIC Long-\n\nTerm Care Insurance Model Act or Long-Term Care Insurance Model\n\nRegulation adopted by the NAIC require amending of the uniform\n\nstandards established by the Commission for long-term care insurance\n\nproducts;\n\n3. To receive and review in an expeditious manner products\n\nfiled with the Commission, and rate filings for disability income\n\nand long-term care insurance products, and give approval of those\n\nproducts and rate filings that satisfy the applicable uniform\n\nstandard, where such approval shall have the force and effect of law\n\nand be binding on the compacting states to the extent and in the\n\nmanner provided in the Compact;\n\n4. To receive and review in an expeditious manner advertisement\n\nrelating to long-term care insurance products for which uniform\n\nstandards have been adopted by the Commission, and give approval to\n\nall advertisement that satisfies the applicable uniform standard.\n\nFor any product covered under this Compact, other than long-term\n\ncare insurance products, the Commission shall have the authority to\n\nrequire an insurer to submit all or any part of its advertisement\n\nwith respect to that product for review or approval prior to use, if\n\nthe Commission determines that the nature of the product is such\n\nthat an advertisement of the product could have the capacity or\n\ntendency to mislead the public. The actions of the Commission as\n\nprovided in this section shall have the force and effect of law and\n\nshall be binding in the compacting states to the extent and in the\n\nmanner provided in the Compact;\n\n5. To exercise its rulemaking authority and designate products\n\nand advertisement that may be subject to a self-certification\n\nprocess without the need for prior approval by the Commission;\n\n6. To promulgate operating procedures, pursuant to Article VII\n\nof this Compact, which shall be binding in the compacting states to\n\nthe extent and in the manner provided in this Compact;\n\n7. To bring and prosecute legal proceedings or actions in its\n\nname as the Commission; provided, that the standing of any state\n\ninsurance department to sue or be sued under applicable law shall\n\nnot be affected;\n\n8. To issue subpoenas requiring the attendance and testimony of\n\nwitnesses and the production of evidence;\n\n9. To establish and maintain offices;\n\n10. To purchase and maintain insurance and bonds;\n\n11. To borrow, accept or contract for services of personnel,\n\nincluding, but not limited to, employees of a compacting state;\n\n12. To hire employees, professionals or specialists, and elect\n\nor appoint officers, and to fix their compensation, define their\n\nduties and give them appropriate authority to carry out the purposes\n\nof the Compact, and determine their qualifications; and to establish\n\nthe Commission’s personnel policies and programs relating to, among\n\nother things, conflicts of interest, rates of compensation and\n\nqualifications of personnel;\n\n13. To accept any and all appropriate donations and grants of\n\nmoney, equipment, supplies, materials and services, and to receive,\n\nutilize and dispose of the same; provided, that at all times the\n\nCommission shall strive to avoid any appearance of impropriety;\n\n14. To lease, purchase, accept appropriate gifts or donations\n\nof, or otherwise to own, hold, improve or use, any property, real,\nonnel;\n\n13. To accept any and all appropriate donations and grants of\n\nmoney, equipment, supplies, materials and services, and to receive,\n\nutilize and dispose of the same; provided, that at all times the\n\nCommission shall strive to avoid any appearance of impropriety;\n\n14. To lease, purchase, accept appropriate gifts or donations\n\nof, or otherwise to own, hold, improve or use, any property, real,\n\npersonal or mixed; provided, that at all times the Commission shall\n\nstrive to avoid any appearance of impropriety;\n\n15. To sell, convey, mortgage, pledge, lease, exchange, abandon\n\nor otherwise dispose of any property, real, personal or mixed;\n\n16. To remit filing fees to compacting states as may be set\n\nforth in the bylaws, rules or operating procedures;\n\n17. To enforce compliance by compacting states with rules,\n\nuniform standards, operating procedures and bylaws;\n\n18. To provide for dispute resolution among compacting states;\n\n19. To advise compacting states on issues relating to insurers\n\ndomiciled or doing business in noncompacting jurisdictions,\n\nconsistent with the purposes of this Compact;\n\n20. To provide advice and training to those personnel in state\n\ninsurance departments responsible for product review, and to be a\n\nresource for state insurance departments;\n\n21. To establish a budget and make expenditures;\n\n22. To borrow money;\n\n23. To appoint committees, including advisory committees\n\ncomprising members, state insurance regulators, state legislators or\n\ntheir representatives, insurance industry and consumer\n\nrepresentatives, and such other interested persons as may be\n\ndesignated in the bylaws;\n\n24. To provide and receive information from, and to cooperate\n\nwith, law enforcement agencies;\n\n25. To adopt and use a corporate seal; and\n\n26. To perform such other functions as may be necessary or\n\nappropriate to achieve the purposes of this Compact consistent with\n\nthe state regulation of the business of insurance.\n\nARTICLE V. ORGANIZATION OF THE COMMISSION\n\n1. Membership, Voting and Bylaws:\n\na. Each compacting state shall have and be limited to one\n\nmember. Each member shall be qualified to serve in\n\nthat capacity pursuant to applicable law of the\n\ncompacting state. Any member may be removed or\n\nsuspended from office as provided by the law of the\n\nstate from which he or she shall be appointed. Any\n\nvacancy occurring in the Commission shall be filled in\n\naccordance with the laws of the compacting state\n\nwherein the vacancy exists. Nothing herein shall be\n\nconstrued to affect the manner in which a compacting\n\nstate determines the election or appointment and\n\nqualification of its own Commissioner.\n\nb. Each member shall be entitled to one vote and shall\n\nhave an opportunity to participate in the governance\n\nof the Commission in accordance with the bylaws.\n\nNotwithstanding any provision herein to the contrary,\n\nno action of the Commission with respect to the\n\npromulgation of a uniform standard shall be effective\n\nunless two-thirds (2/3) of the members vote in favor\n\nthereof.\n\nc. The Commission shall, by a majority of the members,\n\nprescribe bylaws to govern its conduct as may be\n\nnecessary or appropriate to carry out the purposes,\n\nand exercise the powers, of the Compact, including,\n\nbut not limited to:\n\ni. Establishing the fiscal year of the Commission;\n\nii. Providing reasonable procedures for appointing\n\nand electing members, as well as holding\n\nmeetings, of the Management Committee;\n\niii. Providing reasonable standards and procedures:\n\n(1) for the establishment and meetings of other\n\ncommittees, and\nrry out the purposes,\n\nand exercise the powers, of the Compact, including,\n\nbut not limited to:\n\ni. Establishing the fiscal year of the Commission;\n\nii. Providing reasonable procedures for appointing\n\nand electing members, as well as holding\n\nmeetings, of the Management Committee;\n\niii. Providing reasonable standards and procedures:\n\n(1) for the establishment and meetings of other\n\ncommittees, and\n\n(2) governing any general or specific delegation\n\nof any authority or function of the\n\nCommission;\n\niv. Providing reasonable procedures for calling and\n\nconducting meetings of the Commission that\n\nconsist of a majority of Commission members,\n\nensuring reasonable advance notice of each such\n\nmeeting and providing for the right of citizens\n\nto attend each such meeting with enumerated\n\nexceptions designed to protect the public’s\n\ninterest, the privacy of individuals, and\n\ninsurers’ proprietary information, including\n\ntrade secrets. The Commission may meet in camera\n\nonly after a majority of the entire membership\n\nvotes to close a meeting en toto or in part. As\n\nsoon as practicable, the Commission must make\n\npublic:\n\n(1) a copy of the vote to close the meeting\n\nrevealing the vote of each member with no\n\nproxy votes allowed, and\n\n(2) votes taken during such meeting;\n\nv. Establishing the titles, duties and authority and\n\nreasonable procedures for the election of the\n\nofficers of the Commission;\n\nvi. Providing reasonable standards and procedures for\n\nthe establishment of the personnel policies and\n\nprograms of the Commission. Notwithstanding any\n\ncivil service or other similar laws of any\n\ncompacting state, the bylaws shall exclusively\n\ngovern the personnel policies and programs of the\n\nCommission;\n\nvii. Promulgating a code of ethics to address\n\npermissible and prohibited activities of\n\nCommission members and employees; and\n\nviii. Providing a mechanism for winding up the\n\noperations of the Commission and the equitable\n\ndisposition of any surplus funds that may exist\n\nafter the termination of the Compact after the\n\npayment and/or reserving of all of its debts and\n\nobligations.\n\nd. The Commission shall publish its bylaws in a\n\nconvenient form and file a copy thereof and a copy of\n\nany amendment thereto with the appropriate agency or\n\nofficer in each of the compacting states.\n\n2. Management Committee, Officers and Personnel\n\na. A Management Committee comprising no more than\n\nfourteen members shall be established as follows:\n\ni. One member from each of the six compacting states\n\nwith the largest premium volume for individual\n\nand group annuities, life, disability income and\n\nlong-term care insurance products, determined\n\nfrom the records of the NAIC for the prior year;\n\nii. Four members from those compacting states with at\n\nleast two percent (2%) of the market based on the\n\npremium volume described above, other than the\n\nsix compacting states with the largest premium\n\nvolume, selected on a rotating basis as provided\n\nin the bylaws; and\n\niii. Four members from those compacting states with\n\nless than two percent (2%) of the market, based\n\non the premium volume described above, with one\n\nselected from each of the four zone regions of\n\nthe NAIC as provided in the bylaws.\n\nb. The Management Committee shall have such authority and\n\nduties as may be set forth in the bylaws including,\n\nbut not limited to:\n\ni. Managing the affairs of the Commission in a\n\nmanner consistent with the bylaws and purposes of\n\nthe Commission;\n\nii. Establishing and overseeing an organizational\n\nstructure within, and appropriate procedures for,\n\nthe Commission to provide for the creation of\n\nuniform standards and other rules, receipt and\n\nreview of product filings, administrative and\n\ntechnical support functions, review of decisions\n\nregarding the disapproval of a product filing,\n\nand the review of elections made by a compacting\nmission;\n\nii. Establishing and overseeing an organizational\n\nstructure within, and appropriate procedures for,\n\nthe Commission to provide for the creation of\n\nuniform standards and other rules, receipt and\n\nreview of product filings, administrative and\n\ntechnical support functions, review of decisions\n\nregarding the disapproval of a product filing,\n\nand the review of elections made by a compacting\n\nstate to opt out of uniform standard; provided,\n\nthat a uniform standard shall not be submitted to\n\nthe compacting states for adoption unless\n\napproved by two-thirds (2/3) of the members of\n\nthe Management Committee;\n\niii. Overseeing the offices of the Commission; and\n\niv. Planning, implementing, and coordinating\n\ncommunications and activities with other state,\n\nfederal and local government organizations in\n\norder to advance the goals of the Commission.\n\nc. The Commission shall elect annually officers from the\n\nManagement Committee, with each having such authority\n\nand duties as may be specified in the bylaws.\n\nd. The Management Committee may, subject to the approval\n\nof the Commission, appoint or retain an executive\n\ndirector for such period, upon such terms and\n\nconditions and for such compensation as the Commission\n\nmay deem appropriate. The executive director shall\n\nserve as secretary to the Commission, but shall not be\n\na member of the Commission. The executive director\n\nshall hire and supervise such other staff as may be\n\nauthorized by the Commission.\n\n3. Legislative and Advisory Committees\n\na. A legislative committee comprising state legislators\n\nor their designees shall be established to monitor the\n\noperations of, and make recommendations to, the\n\nCommission, including the Management Committee;\n\nprovided, that the manner of selection and term of any\n\nlegislative committee member shall be as set forth in\n\nthe bylaws. Prior to the adoption by the Commission\n\nof any uniform standard, revision to the bylaws,\n\nannual budget or other significant matter as may be\n\nprovided in the bylaws, the Management Committee shall\n\nconsult with and report to the legislative committee.\n\nb. The Commission shall establish two advisory\n\ncommittees, one of which shall comprise consumer\n\nrepresentatives independent of the insurance industry,\n\nand the other comprising insurance industry\n\nrepresentatives.\n\nc. The Commission may establish additional advisory\n\ncommittees as its bylaws may provide for the carrying\n\nout of its functions.\n\n4. Corporate Records of the Commission\n\nThe Commission shall maintain its corporate books and records in\n\naccordance with the bylaws.\n\n5. Qualified Immunity, Defense and Indemnification\n\na. The members, officers, executive director, employees\n\nand representatives of the Commission shall be immune\n\nfrom suit and liability, either personally or in their\n\nofficial capacity, for any claim for damage to or loss\n\nof property or personal injury or other civil\n\nliability caused by or arising out of any actual or\n\nalleged act, error or omission that occurred, or that\n\nthe person against whom the claim is made had a\n\nreasonable basis for believing occurred, within the\n\nscope of Commission employment, duties or\n\nresponsibilities; provided, that nothing in this\n\nparagraph shall be construed to protect any such\n\nperson from suit and/or liability for any damage,\n\nloss, injury or liability caused by the intentional or\n\nwillful and wanton misconduct of that person.\n\nb. The Commission shall defend any member, officer,\n\nexecutive director, employee or representative of the\n\nCommission in any civil action seeking to impose\n\nliability arising out of any actual or alleged act,\n\nerror or omission that occurred within the scope of\n\nCommission employment, duties or responsibilities, or\n\nthat the person against whom the claim is made had a\n\nreasonable basis for believing occurred within the\n\nscope of Commission employment, duties or\n\nresponsibilities; provided, that nothing herein shall\nany civil action seeking to impose\n\nliability arising out of any actual or alleged act,\n\nerror or omission that occurred within the scope of\n\nCommission employment, duties or responsibilities, or\n\nthat the person against whom the claim is made had a\n\nreasonable basis for believing occurred within the\n\nscope of Commission employment, duties or\n\nresponsibilities; provided, that nothing herein shall\n\nbe construed to prohibit that person from retaining\n\nhis or her own counsel; and provided further, that the\n\nactual or alleged act, error or omission did not\n\nresult from that person’s intentional or willful and\n\nwanton misconduct.\n\nc. The Commission shall indemnify and hold harmless any\n\nmember, officer, executive director, employee or\n\nrepresentative of the Commission for the amount of any\n\nsettlement or judgment obtained against that person\n\narising out of any actual or alleged act, error or\n\nomission that occurred within the scope of Commission\n\nemployment, duties or responsibilities, or that such\n\nperson had a reasonable basis for believing occurred\n\nwithin the scope of Commission employment, duties or\n\nresponsibilities, provided that the actual or alleged\n\nact, error or omission did not result from the\n\nintentional or willful and wanton misconduct of that\n\nperson.\n\nARTICLE VI. MEETINGS AND ACTS OF THE COMMISSION\n\n1. The Commission shall meet and take such actions as are\n\nconsistent with the provisions of this Compact and the bylaws.\n\n2. Each member of the Commission shall have the right and power\n\nto cast a vote to which that compacting state is entitled and to\n\nparticipate in the business and affairs of the Commission. A member\n\nshall vote in person or by such other means as provided in the\n\nbylaws. The bylaws may provide for members’ participation in\n\nmeetings by telephone or other means of communication.\n\n3. The Commission shall meet at least once during each calendar\n\nyear. Additional meetings shall be held as set forth in the bylaws.\n\nARTICLE VII. RULES AND OPERATING PROCEDURES:\n\nRULEMAKING FUNCTIONS OF THE COMMISSION AND\n\nOPTING OUT OF UNIFORM STANDARDS\n\n1. Rulemaking Authority. The Commission shall promulgate\n\nreasonable rules, including uniform standards, and operating\n\nprocedures in order to effectively and efficiently achieve the\n\npurposes of this Compact. Notwithstanding the foregoing, in the\n\nevent the Commission exercises its rulemaking authority in a manner\n\nthat is beyond the scope of the purposes of this act, or the powers\n\ngranted hereunder, then such an action by the Commission shall be\n\ninvalid and have no force and effect.\n\n2. Rulemaking Procedure. Rules and operating procedures shall\n\nbe made pursuant to a rulemaking process that conforms to the Model\n\nState Administrative Procedure Act of 1981 as amended, as may be\n\nappropriate to the operations of the Commission. Before the\n\nCommission adopts a uniform standard, the Commission shall give\n\nwritten notice to the relevant state legislative committee(s) in\n\neach compacting state responsible for insurance issues of its\n\nintention to adopt the uniform standard. The Commission in adopting\n\na uniform standard shall consider fully all submitted materials and\n\nissue a concise explanation of its decision.\n\n3. Effective Date and Opt Out of a Uniform Standard. A uniform\n\nstandard shall become effective ninety (90) days after its\n\npromulgation by the Commission or such later date as the Commission\n\nmay determine; provided, however, that a compacting state may opt\n\nout of a uniform standard as provided in this Article. “Opt out”\n\nshall be defined as any action by a compacting state to decline to\n\nadopt or participate in a promulgated uniform standard. All other\n\nrules and operating procedures, and amendments thereto, shall become\n\neffective as of the date specified in each rule, operating procedure\n\nor amendment.\nf a uniform standard as provided in this Article. “Opt out”\n\nshall be defined as any action by a compacting state to decline to\n\nadopt or participate in a promulgated uniform standard. All other\n\nrules and operating procedures, and amendments thereto, shall become\n\neffective as of the date specified in each rule, operating procedure\n\nor amendment.\n\n4. Opt Out Procedure. A compacting state may opt out of a\n\nuniform standard, either by legislation or regulation duly\n\npromulgated by the Insurance Department under the compacting state’s\n\nAdministrative Procedure Act. If a compacting state elects to opt\n\nout of a uniform standard by regulation, it must:\n\na. Give written notice to the Commission no later than\n\nten (10) business days after the uniform standard is\n\npromulgated, or at the time the state becomes a\n\ncompacting state; and\n\nb. Find that the uniform standard does not provide\n\nreasonable protections to the citizens of the state,\n\ngiven the conditions in the state. The Commissioner\n\nshall make specific findings of fact and conclusions\n\nof law, based on a preponderance of the evidence,\n\ndetailing the conditions in the state which warrant a\n\ndeparture from the uniform standard and determining\n\nthat the uniform standard would not reasonably protect\n\nthe citizens of the state. The Commissioner must\n\nconsider and balance the following factors and find\n\nthat the conditions in the state and needs of the\n\ncitizens of the state outweigh:\n\ni. The intent of the Legislature to participate in,\n\nand the benefits of, an interstate agreement to\n\nestablish national uniform consumer protections\n\nfor the products subject to this act; and\n\nii. The presumption that a uniform standard adopted\n\nby the Commission provides reasonable protections\n\nto consumers of the relevant product.\n\nNotwithstanding the foregoing, a compacting state may, at the time\n\nof its enactment of this Compact, prospectively opt out of all\n\nuniform standards involving long-term care insurance products by\n\nexpressly providing for such opt out in the enacted Compact, and\n\nsuch an opt out shall not be treated as a material variance in the\n\noffer or acceptance of any state to participate in this Compact.\n\nSuch an opt out shall be effective at the time of enactment of this\n\nCompact by the compacting state and shall apply to all existing\n\nuniform standards involving long-term care insurance products and\n\nthose subsequently promulgated.\n\n5. Effect of Opt Out. If a compacting state elects to opt out\n\nof a uniform standard, the uniform standard shall remain applicable\n\nin the compacting state electing to opt out until such time the opt\n\nout legislation is enacted into law or the regulation opting out\n\nbecomes effective.\n\nOnce the opt out of a uniform standard by a compacting state\n\nbecomes effective as provided under the laws of that state, the\n\nuniform standard shall have no further force and effect in that\n\nstate unless and until the legislation or regulation implementing\n\nthe opt out is repealed or otherwise becomes ineffective under the\n\nlaws of the state. If a compacting state opts out of a uniform\n\nstandard after the uniform standard has been made effective in that\n\nstate, the opt out shall have the same prospective effect as\n\nprovided under Article XIV of this Compact for withdrawals.\n\n6. Stay of Uniform Standard. If a compacting state has\n\nformally initiated the process of opting out of a uniform standard\n\nby regulation, and while the regulatory opt out is pending, the\n\ncompacting state may petition the Commission, at least fifteen (15)\n\ndays before the effective date of the uniform standard, to stay the\n\neffectiveness of the uniform standard in that state. The Commission\n\nmay grant a stay if it determines the regulatory opt out is being\n\npursued in a reasonable manner and there is a likelihood of success.\n\nIf a stay is granted or extended by the Commission, the stay or\ning state may petition the Commission, at least fifteen (15)\n\ndays before the effective date of the uniform standard, to stay the\n\neffectiveness of the uniform standard in that state. The Commission\n\nmay grant a stay if it determines the regulatory opt out is being\n\npursued in a reasonable manner and there is a likelihood of success.\n\nIf a stay is granted or extended by the Commission, the stay or\n\nextension thereof may postpone the effective date by up to ninety\n\n(90) days, unless affirmatively extended by the Commission;\n\nprovided, a stay may not be permitted to remain in effect for more\n\nthan one (1) year unless the compacting state can show extraordinary\n\ncircumstances which warrant a continuance of the stay, including,\n\nbut not limited to, the existence of a legal challenge which\n\nprevents the compacting state from opting out. A stay may be\n\nterminated by the Commission upon notice that the rulemaking process\n\nhas been terminated.\n\n7. Not later than thirty (30) days after a rule or operating\n\nprocedure is promulgated, any person may file a petition for\n\njudicial review of the rule or operating procedure; provided, that\n\nthe filing of such a petition shall not stay or otherwise prevent\n\nthe rule or operating procedure from becoming effective unless the\n\ncourt finds that the petitioner has a substantial likelihood of\n\nsuccess. The court shall give deference to the actions of the\n\nCommission consistent with applicable law and shall not find the\n\nrule or operating procedure to be unlawful if the rule or operating\n\nprocedure represents a reasonable exercise of the Commission’s\n\nauthority.\n\nARTICLE VIII. COMMISSION RECORDS AND ENFORCEMENT\n\n1. The Commission shall promulgate rules establishing\n\nconditions and procedures for public inspection and copying of its\n\ninformation and official records, except such information and\n\nrecords involving the privacy of individuals and insurers’ trade\n\nsecrets. The Commission may promulgate additional rules under which\n\nit may make available to federal and state agencies, including law\n\nenforcement agencies, records and information otherwise exempt from\n\ndisclosure, and may enter into agreements with such agencies to\n\nreceive or exchange information or records subject to nondisclosure\n\nand confidentiality provisions.\n\n2. Except as to privileged records, data and information, the\n\nlaws of any compacting state pertaining to confidentiality or\n\nnondisclosure shall not relieve any compacting state Commissioner of\n\nthe duty to disclose any relevant records, data or information to\n\nthe Commission; provided, that disclosure to the Commission shall\n\nnot be deemed to waive or otherwise affect any confidentiality\n\nrequirement; and further provided, that, except as otherwise\n\nexpressly provided in this act, the Commission shall not be subject\n\nto the compacting state’s laws pertaining to confidentiality and\n\nnondisclosure with respect to records, data and information in its\n\npossession. Confidential information of the Commission shall remain\n\nconfidential after such information is provided to any Commissioner.\n\n3. The Commission shall monitor compacting states for\n\ncompliance with duly adopted bylaws, rules, including uniform\n\nstandards, and operating procedures. The Commission shall notify\n\nany noncomplying compacting state in writing of its noncompliance\n\nwith Commission bylaws, rules or operating procedures. If a\n\nnoncomplying compacting state fails to remedy its noncompliance\n\nwithin the time specified in the notice of noncompliance, the\n\ncompacting state shall be deemed to be in default as set forth in\n\nArticle XIV of this Compact.\n\n4. The Commissioner of any state in which an insurer is\n\nauthorized to do business, or is conducting the business of\n\ninsurance, shall continue to exercise his or her authority to\n\noversee the market regulation of the activities of the insurer in\n\naccordance with the provisions of the state’s law. The\ncompacting state shall be deemed to be in default as set forth in\n\nArticle XIV of this Compact.\n\n4. The Commissioner of any state in which an insurer is\n\nauthorized to do business, or is conducting the business of\n\ninsurance, shall continue to exercise his or her authority to\n\noversee the market regulation of the activities of the insurer in\n\naccordance with the provisions of the state’s law. The\n\nCommissioner’s enforcement of compliance with the Compact is\n\ngoverned by the following provisions:\n\na. With respect to the Commissioner’s market regulation\n\nof a product or advertisement that is approved or\n\ncertified to the Commission, the content of the\n\nproduct or advertisement shall not constitute a\n\nviolation of the provisions, standards or requirements\n\nof the Compact except upon a final order of the\n\nCommission, issued at the request of a Commissioner\n\nafter prior notice to the insurer and an opportunity\n\nfor hearing before the Commission.\n\nb. Before a Commissioner may bring an action for\n\nviolation of any provision, standard or requirement of\n\nthe Compact relating to the content of an\n\nadvertisement not approved or certified to the\n\nCommission, the Commission, or an authorized\n\nCommission officer or employee, must authorize the\n\naction. However, authorization pursuant to this\n\nparagraph does not require notice to the insurer,\n\nopportunity for hearing or disclosure of requests for\n\nauthorization or records of the Commission’s action on\n\nsuch requests.\n\nARTICLE IX. DISPUTE RESOLUTION\n\nThe Commission shall attempt, upon the request of a member, to\n\nresolve any disputes or other issues that are subject to this\n\nCompact and which may arise between two or more compacting states,\n\nor between compacting states and noncompacting states, and the\n\nCommission shall promulgate an operating procedure providing for\n\nresolution of such disputes.\n\nARTICLE X. PRODUCT FILING AND APPROVAL\n\n1. Insurers and third-party filers seeking to have a product\n\napproved by the Commission shall file the product with, and pay\n\napplicable filing fees to, the Commission. Nothing in this act\n\nshall be construed to restrict or otherwise prevent an insurer from\n\nfiling its product with the insurance department in any state\n\nwherein the insurer is licensed to conduct the business of\n\ninsurance, and such filing shall be subject to the laws of the\n\nstates where filed.\n\n2. The Commission shall establish appropriate filing and review\n\nprocesses and procedures pursuant to Commission rules and operating\n\nprocedures. Notwithstanding any provision herein to the contrary,\n\nthe Commission shall promulgate rules to establish conditions and\n\nprocedures under which the Commission will provide public access to\n\nproduct filing information. In establishing such rules, the\n\nCommission shall consider the interests of the public in having\n\naccess to such information, as well as protection of personal\n\nmedical and financial information and trade secrets, that may be\n\ncontained in a product filing or supporting information.\n\n3. Any product approved by the Commission may be sold or\n\notherwise issued in those compacting states for which the insurer is\n\nlegally authorized to do business.\n\nARTICLE XI. REVIEW OF COMMISSION DECISIONS REGARDING FILINGS\n\n1. Not later than thirty (30) days after the Commission has\n\ngiven notice of a disapproved product or advertisement filed with\n\nthe Commission, the insurer or third-party filer whose filing was\n\ndisapproved may appeal the determination to a review panel appointed\n\nby the Commission. The Commission shall promulgate rules to\n\nestablish procedures for appointing such review panels and provide\n\nfor notice and hearing. An allegation that the Commission, in\n\ndisapproving a product or advertisement filed with the Commission,\n\nacted arbitrarily, capriciously, or in a manner that is an abuse of\n\ndiscretion or otherwise not in accordance with the law, is subject\nted\n\nby the Commission. The Commission shall promulgate rules to\n\nestablish procedures for appointing such review panels and provide\n\nfor notice and hearing. An allegation that the Commission, in\n\ndisapproving a product or advertisement filed with the Commission,\n\nacted arbitrarily, capriciously, or in a manner that is an abuse of\n\ndiscretion or otherwise not in accordance with the law, is subject\n\nto judicial review in accordance with Section 4 of Article III of\n\nthis Compact.\n\n2. The Commission shall have authority to monitor, review and\n\nreconsider products and advertisement subsequent to their filing or\n\napproval upon a finding that the product does not meet the relevant\n\nuniform standard. Where appropriate, the Commission may withdraw or\n\nmodify its approval after proper notice and hearing, subject to the\n\nappeal process in Section 1 of this article.\n\nARTICLE XII. FINANCE\n\n1. The Commission shall pay or provide for the payment of the\n\nreasonable expenses of its establishment and organization. To fund\n\nthe cost of its initial operations, the Commission may accept\n\ncontributions and other forms of funding from the National\n\nAssociation of Insurance Commissioners, compacting states and other\n\nsources. Contributions and other forms of funding from other\n\nsources shall be of such a nature that the independence of the\n\nCommission concerning the performance of its duties shall not be\n\ncompromised.\n\n2. The Commission shall collect a filing fee from each insurer\n\nand third-party filer filing a product with the Commission to cover\n\nthe cost of the operations and activities of the Commission and its\n\nstaff in a total amount sufficient to cover the Commission’s annual\n\nbudget.\n\n3. The Commission’s budget for a fiscal year shall not be\n\napproved until it has been subject to notice and comment as set\n\nforth in Article VII of this Compact.\n\n4. The Commission shall be exempt from all taxation in and by\n\nthe compacting states.\n\n5. The Commission shall not pledge the credit of any compacting\n\nstate, except by and with the appropriate legal authority of that\n\ncompacting state.\n\n6. The Commission shall keep complete and accurate accounts of\n\nall its internal receipts, including grants and donations, and\n\ndisbursements of all funds under its control. The internal\n\nfinancial accounts of the Commission shall be subject to the\n\naccounting procedures established under its bylaws. The financial\n\naccounts and reports including the system of internal controls and\n\nprocedures of the Commission shall be audited annually by an\n\nindependent certified public accountant. Upon the determination of\n\nthe Commission, but no less frequently than every three (3) years,\n\nthe review of the independent auditor shall include a management and\n\nperformance audit of the Commission. The Commission shall make an\n\nannual report to the Governor and Legislature of the compacting\n\nstates, which shall include a report of the independent audit. The\n\nCommission’s internal accounts shall not be confidential and such\n\nmaterials may be shared with the Commissioner of any compacting\n\nstate upon request; provided, however, that any work papers related\n\nto any internal or independent audit and any information regarding\n\nthe privacy of individuals and insurers’ proprietary information,\n\nincluding trade secrets, shall remain confidential.\n\n7. No compacting state shall have any claim to or ownership of\n\nany property held by or vested in the Commission or to any\n\nCommission funds held pursuant to the provisions of this Compact.\n\nARTICLE XIII. COMPACTING STATES, EFFECTIVE DATE AND AMENDMENT\n\n1. Any state is eligible to become a compacting state.\n\n2. The Compact shall become effective and binding upon\n\nlegislative enactment of the Compact into law by two compacting\n\nstates; provided, the Commission shall become effective for purposes\nhe Commission or to any\n\nCommission funds held pursuant to the provisions of this Compact.\n\nARTICLE XIII. COMPACTING STATES, EFFECTIVE DATE AND AMENDMENT\n\n1. Any state is eligible to become a compacting state.\n\n2. The Compact shall become effective and binding upon\n\nlegislative enactment of the Compact into law by two compacting\n\nstates; provided, the Commission shall become effective for purposes\n\nof adopting uniform standards for, reviewing, and giving approval or\n\ndisapproval of, products filed with the Commission that satisfy\n\napplicable uniform standards only after twenty-six (26) states are\n\ncompacting states or, alternatively, by states representing greater\n\nthan forty percent (40%) of the premium volume for life insurance,\n\nannuity, disability income and long-term care insurance products,\n\nbased on records of the NAIC for the prior year. Thereafter, it\n\nshall become effective and binding as to any other compacting state\n\nupon enactment of the Compact into law by that state.\n\n3. Amendments to the Compact may be proposed by the Commission\n\nfor enactment by the compacting states. No amendment shall become\n\neffective and binding upon the Commission and the compacting states\n\nunless and until all compacting states enact the amendment into law.\n\nARTICLE XIV. WITHDRAWAL, DEFAULT AND TERMINATION\n\n1. Withdrawal\n\na. Once effective, the Compact shall continue in force\n\nand remain binding upon each and every compacting\n\nstate; provided, that a compacting state may withdraw\n\nfrom the Compact (“withdrawing state”) by enacting a\n\nstatute specifically repealing the statute which\n\nenacted the Compact into law.\n\nb. The effective date of withdrawal is the effective date\n\nof the repealing statute. However, the withdrawal\n\nshall not apply to any product filings approved or\n\nself-certified, or any advertisement of such products,\n\non the date the repealing statute becomes effective,\n\nexcept by mutual agreement of the Commission and the\n\nwithdrawing state unless the approval is rescinded by\n\nthe withdrawing state as provided in paragraph e of\n\nthis section.\n\nc. The Commissioner of the withdrawing state shall\n\nimmediately notify the Management Committee in writing\n\nupon the introduction of legislation repealing this\n\nCompact in the withdrawing state.\n\nd. The Commission shall notify the other compacting\n\nstates of the introduction of such legislation within\n\nten (10) days after its receipt of notice thereof.\n\ne. The withdrawing state is responsible for all\n\nobligations, duties and liabilities incurred through\n\nthe effective date of withdrawal, including any\n\nobligations, the performance of which extend beyond\n\nthe effective date of withdrawal, except to the extent\n\nthose obligations may have been released or\n\nrelinquished by mutual agreement of the Commission and\n\nthe withdrawing state. The Commission’s approval of\n\nproducts and advertisement prior to the effective date\n\nof withdrawal shall continue to be effective and be\n\ngiven full force and effect in the withdrawing state,\n\nunless formally rescinded by the withdrawing state in\n\nthe same manner as provided by the laws of the\n\nwithdrawing state for the prospective disapproval of\n\nproducts or advertisement previously approved under\n\nstate law.\n\nf. Reinstatement following withdrawal of any compacting\n\nstate shall occur upon the effective date of the\n\nwithdrawing state reenacting the Compact.\n\n2. Default\n\na. If the Commission determines that any compacting state\n\nhas at any time defaulted (“defaulting state”) in the\n\nperformance of any of its obligations or\n\nresponsibilities under this Compact, the bylaws or\n\nduly promulgated rules or operating procedures, then,\n\nafter notice and hearing as set forth in the bylaws,\n\nall rights, privileges and benefits conferred by this\n\nCompact on the defaulting state shall be suspended\n\nfrom the effective date of default as fixed by the\n\nCommission. The grounds for default include, but are\nany of its obligations or\n\nresponsibilities under this Compact, the bylaws or\n\nduly promulgated rules or operating procedures, then,\n\nafter notice and hearing as set forth in the bylaws,\n\nall rights, privileges and benefits conferred by this\n\nCompact on the defaulting state shall be suspended\n\nfrom the effective date of default as fixed by the\n\nCommission. The grounds for default include, but are\n\nnot limited to, failure of a compacting state to\n\nperform its obligations or responsibilities, and any\n\nother grounds designated in Commission rules. The\n\nCommission shall immediately notify the defaulting\n\nstate in writing of the defaulting state’s suspension\n\npending a cure of the default. The Commission shall\n\nstipulate the conditions and the time period within\n\nwhich the defaulting state must cure its default. If\n\nthe defaulting state fails to cure the default within\n\nthe time period specified by the Commission, the\n\ndefaulting state shall be terminated from the Compact\n\nand all rights, privileges and benefits conferred by\n\nthis Compact shall be terminated from the effective\n\ndate of termination.\n\nb. Product approvals by the Commission or product self-\n\ncertifications, or any advertisement in connection\n\nwith such product, that is in force on the effective\n\ndate of termination shall remain in force in the\n\ndefaulting state in the same manner as if the\n\ndefaulting state had withdrawn voluntarily pursuant to\n\nSection 1 of this article.\n\nc. Reinstatement following termination of any compacting\n\nstate requires a reenactment of the Compact.\n\n3. Dissolution of Compact\n\na. The Compact dissolves effective upon the date of the\n\nwithdrawal or default of the compacting state which\n\nreduces membership in the Compact to one compacting\n\nstate.\n\nb. Upon the dissolution of this Compact, the Compact\n\nbecomes null and void and shall be of no further force\n\nor effect, and the business and affairs of the\n\nCommission shall be wound up and any surplus funds\n\nshall be distributed in accordance with the bylaws.\n\nARTICLE XV. SEVERABILITY AND CONSTRUCTION\n\n1. The provisions of this Compact shall be severable; and if\n\nany phrase, clause, sentence or provision is deemed unenforceable,\n\nthe remaining provisions of the Compact shall be enforceable.\n\n2. The provisions of this Compact shall be liberally construed\n\nto effectuate its purposes.\n\nARTICLE XVI. BINDING EFFECT OF COMPACT AND OTHER LAWS\n\n1. Other Laws\n\na. Nothing herein prevents the enforcement of any other\n\nlaw of a compacting state, except as provided in\n\nparagraph b of this section.\n\nb. For any product approved or certified to the\n\nCommission, the rules, uniform standards and any other\n\nrequirements of the Commission shall constitute the\n\nexclusive provisions applicable to the content,\n\napproval and certification of such products. For\n\nadvertisement that is subject to the Commission’s\n\nauthority, any rule, uniform standard or other\n\nrequirement of the Commission which governs the\n\ncontent of the advertisement shall constitute the\n\nexclusive provision that a Commissioner may apply to\n\nthe content of the advertisement. Notwithstanding the\n\nforegoing, no action taken by the Commission shall\n\nabrogate or restrict:\n\ni. the access of any person to state courts,\n\nii. remedies available under state law related to\n\nbreach of contract, tort, or other laws not\n\nspecifically directed to the content of the\n\nproduct,\n\niii. state law relating to the construction of\n\ninsurance contracts, or\n\niv. the authority of the Attorney General of the\n\nstate including, but not limited to, maintaining\n\nany actions or proceedings, as authorized by law.\n\nc. All insurance products filed with individual states\n\nshall be subject to the laws of those states.\n\n2. Binding Effect of this Compact\n\na. All lawful actions of the Commission, including all\n\nrules and operating procedures promulgated by the\n1479\n\niv. the authority of the Attorney General of the\n\nstate including, but not limited to, maintaining\n\nany actions or proceedings, as authorized by law.\n\nc. All insurance products filed with individual states\n\nshall be subject to the laws of those states.\n\n2. Binding Effect of this Compact\n\na. All lawful actions of the Commission, including all\n\nrules and operating procedures promulgated by the\n\nCommission, are binding upon the compacting states.\n\nb. All agreements between the Commission and the\n\ncompacting states are binding in accordance with their\n\nterms.\n\nc. Upon the request of a party to a conflict over the\n\nmeaning or interpretation of Commission actions, and\n\nupon a majority vote of the compacting states, the\n\nCommission may issue advisory opinions regarding the\n\nmeaning or interpretation in dispute.\n\nd. In the event any provision of the Compact exceeds the\n\nconstitutional limits imposed on the Legislature of\n\nany compacting state, the obligations, duties, powers\n\nor jurisdiction sought to be conferred by that\n\nprovision upon the Commission shall be ineffective as\n\nto that compacting state, and those obligations,\n\nduties, powers or jurisdiction shall remain in the\n\ncompacting state and shall be exercised by the agency\n\nthereof to which those obligations, duties, powers or\n\njurisdiction are delegated by law in effect at the\n\ntime this Compact becomes effective.","path":["OK Code","Title 36"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os36.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"80c089e66d7f4e4970582888d77f3cafaea9d84c47d52398386d851bf8d2c26b","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-36-36-7003","next":"us-ok/okla.-stat.-tit.-36-36-701"},"notice":"GroundRules: Original legal text. Not legal advice."}