Florida Senate - 2013                CS for CS for CS for SB 242
       
       
       
       By the Committees on Appropriations; Governmental Oversight and
       Accountability; and Banking and Insurance; and Senator Hukill
       
       
       
       576-04952-13                                           2013242c3
    1                        A bill to be entitled                      
    2         An act relating to the Interstate Insurance Product
    3         Regulation Compact; providing legislative findings and
    4         intent; providing purposes; providing definitions;
    5         providing for the establishment of an Interstate
    6         Insurance Product Regulation Commission; providing
    7         responsibilities of the commission; specifying the
    8         commission as an instrumentality of the compacting
    9         states; providing for venue; specifying the commission
   10         as a separate, not-for-profit entity; providing powers
   11         of the commission; providing for organization of the
   12         commission; providing for membership, voting, and
   13         bylaws; designating the Commissioner of Insurance
   14         Regulation as the representative of the state on the
   15         commission; allowing the commissioner to designate a
   16         person to represent the state on the commission, as is
   17         necessary, to fulfill the duties of being a member of
   18         the commission; providing for a management committee,
   19         officers, and personnel of the commission; providing
   20         authority of the management committee; providing for
   21         legislative and advisory committees; providing for
   22         qualified immunity, defense, and indemnification of
   23         members, officers, employees, and representatives of
   24         the commission; providing for meetings and acts of the
   25         commission; providing rules and operating procedures;
   26         providing rulemaking functions of the commission;
   27         providing for opting out of uniform standards;
   28         providing procedures and requirements; providing for
   29         commission records and enforcement; authorizing the
   30         commission to adopt rules; providing for disclosure of
   31         certain information; specifying that certain records,
   32         data, or information of the commission, wherever
   33         received, by and in possession of the Office of
   34         Insurance Regulation is subject to ch. 119, F.S.;
   35         requiring the commission to monitor for compliance;
   36         providing for dispute resolution; providing for
   37         product filing and approval; requiring the commission
   38         to establish filing and review processes and
   39         procedures; providing for review of commission
   40         decisions regarding filings; providing for finance of
   41         commission activities; providing for payment of
   42         expenses; authorizing the commission to collect filing
   43         fees for certain purposes; providing for approval of a
   44         commission budget; exempting the commission from all
   45         taxation, except as otherwise provided; prohibiting
   46         the commission from pledging the credit of any
   47         compacting states without authority; requiring the
   48         commission to keep complete accurate accounts, provide
   49         for audits, and make annual reports to the Governors
   50         and Legislatures of compacting states; providing for
   51         amendment of the compact; providing for withdrawal
   52         from the compact, default by compacting states, and
   53         dissolution of the compact; providing severability and
   54         construction; providing for binding effect of this
   55         compact and other laws; prospectively opting out of
   56         all uniform standards adopted by the commission
   57         involving long-term care insurance products; adopting
   58         all other existing uniform standards that have been
   59         adopted by the commission; providing a procedure for
   60         opting out of and adopting new uniform standards or
   61         amendments to existing standards; providing for the
   62         preemption of certain state laws; requiring the office
   63         to notify the Legislature of any new uniform standards
   64         or amendments to existing standards; providing that
   65         the commission is subject to certain state tax
   66         requirements; providing for public access to records;
   67         authorizing the Financial Services Commission to adopt
   68         rules to implement this act; providing that if any
   69         part of this act is invalidated the entire act is
   70         invalid; providing an effective date.
   71  
   72  Be It Enacted by the Legislature of the State of Florida:
   73  
   74         Section 1. Legislative findings; intent.—
   75         (1) The Legislature finds that the financial services
   76  marketplace has changed significantly in recent years and that
   77  asset-based insurance products, which include life insurance,
   78  annuities, disability income insurance, and long-term care
   79  insurance, now compete directly with other retirement and estate
   80  planning instruments that are sold by banks and securities
   81  firms.
   82         (2) The Legislature further finds that the increased
   83  mobility of the population and the risks borne by these asset
   84  based products are not local in nature.
   85         (3) The Legislature further finds that the Interstate
   86  Insurance Product Regulation Compact Model adopted by the
   87  National Association of Insurance Commissioners and endorsed by
   88  the National Conference of Insurance Legislators and the
   89  National Conference of State Legislatures is designed to address
   90  these market changes by providing a uniform set of product
   91  standards and a single source for filing of new products.
   92         (4) The Legislature further finds that the product
   93  standards that have been developed provide a high level of
   94  consumer protection. Further, it is noted that the Interstate
   95  Insurance Product Regulation Compact Model includes a mechanism
   96  for opting out of any product standard that the state determines
   97  would not reasonably protect its citizens. With respect to long
   98  term care insurance, the Legislature understands that the
   99  compact does not intend to develop a uniform standard for rate
  100  increase filings, thereby leaving the authority over long-term
  101  care rate increases with the state. The state relies on that
  102  understanding in adopting this legislation. The state, pursuant
  103  to the terms and conditions of this act, seeks to join with
  104  other states and establish the Interstate Insurance Product
  105  Regulation Compact, and thus become a member of the Interstate
  106  Insurance Product Regulation Commission. The Commissioner of
  107  Insurance Regulation is hereby designated to serve as the
  108  representative of this state on the commission. The commissioner
  109  may designate a person to represent this state on the
  110  commission, as is necessary, in order to fulfill the duties of
  111  being a member of the commission.
  112         Section 2. Interstate Insurance Product Regulation
  113  Compact.—The Interstate Insurance Product Regulation Compact is
  114  hereby enacted into law and entered into by this state with all
  115  states legally joining therein in the form substantially as
  116  follows:
  117  
  118           Interstate Insurance Product Regulation Compact         
  119  
  120                              Preamble                             
  121  
  122  This compact is intended to help states join together to
  123  establish an interstate compact to regulate designated insurance
  124  products. Pursuant to the terms and conditions of this compact,
  125  this state seeks to join with other states and establish the
  126  Interstate Insurance Product Regulation Compact and thus become
  127  a member of the Interstate Insurance Product Regulation
  128  Commission.
  129  
  130                              Article I                            
  131  
  132         PURPOSES.—The purposes of this compact are, through means
  133  of joint and cooperative action among the compacting states, to:
  134         (1) Promote and protect the interest of consumers of
  135  individual and group annuity, life insurance, disability income,
  136  and long-term care insurance products.
  137         (2) Develop uniform standards for insurance products
  138  covered under the compact.
  139         (3) Establish a central clearinghouse to receive and
  140  provide prompt review of insurance products covered under the
  141  compact and, in certain cases, advertisements related thereto,
  142  submitted by insurers authorized to do business in one or more
  143  compacting states.
  144         (4) Give appropriate regulatory approval to those product
  145  filings and advertisements satisfying the applicable uniform
  146  standard.
  147         (5) Improve coordination of regulatory resources and
  148  expertise between state insurance departments regarding the
  149  setting of uniform standards and review of insurance products
  150  covered under the compact.
  151         (6) Create the Interstate Insurance Product Regulation
  152  Commission.
  153         (7) Perform these and such other related functions as may
  154  be consistent with the state regulation of the business of
  155  insurance.
  156  
  157                             Article II                            
  158  
  159         DEFINITIONS.—For purposes of this compact, the term:
  160         (1) “Advertisement” means any material designed to create
  161  public interest in a product, or induce the public to purchase,
  162  increase, modify, reinstate, borrow on, surrender, replace, or
  163  retain a policy, as more specifically defined in the rules and
  164  operating procedures of the commission adopted as of March 1,
  165  2013, and subsequent amendments thereto if the methodology
  166  remains substantially consistent.
  167         (2) “Bylaws” means those bylaws adopted by the commission
  168  as of March 1, 2013, for its governance or for directing or
  169  controlling the commission’s actions or conduct.
  170         (3) “Compacting state” means any state which has enacted
  171  this compact legislation and has not withdrawn pursuant to
  172  subsection (1) of Article XIV of this compact or been terminated
  173  pursuant to subsection (2) of Article XIV of this compact.
  174         (4) “Commission” means the “Interstate Insurance Product
  175  Regulation Commission” established by this compact.
  176         (5) “Commissioner” means the chief insurance regulatory
  177  official of a state, including, but not limited to, the
  178  commissioner, superintendent, director, or administrator. For
  179  purposes of this compact, the Commissioner of Insurance
  180  Regulation is the chief insurance regulatory official of this
  181  state.
  182         (6) “Domiciliary state” means the state in which an insurer
  183  is incorporated or organized or, in the case of an alien
  184  insurer, its state of entry.
  185         (7) “Insurer” means any entity licensed by a state to issue
  186  contracts of insurance for any of the lines of insurance covered
  187  by this compact.
  188         (8) “Member” means the person chosen by a compacting state
  189  as its representative to the commission, or his or her designee.
  190         (9) “Noncompacting state” means any state which is not at
  191  the time a compacting state.
  192         (10) “Office” means the Office of Insurance Regulation of
  193  the Financial Services Commission.
  194         (11) “Operating procedures” means procedures adopted by the
  195  commission as of March 1, 2013, and subsequent amendments
  196  thereto if the methodology remains substantially consistent,
  197  implementing a rule, uniform standard, or provision of this
  198  compact.
  199         (12) “Product” means the form of a policy or contract,
  200  including any application, endorsement, or related form which is
  201  attached to and made a part of the policy or contract, and any
  202  evidence of coverage or certificate, for an individual or group
  203  annuity, life insurance, disability income, or long-term care
  204  insurance product that an insurer is authorized to issue.
  205         (13) “Rule” means a statement of general or particular
  206  applicability and future effect adopted by the commission as of
  207  March 1, 2013, and subsequent amendments thereto if the
  208  methodology remains substantially consistent, including a
  209  uniform standard developed pursuant to Article VII of this
  210  compact, designed to implement, interpret, or prescribe law or
  211  policy or describe the organization, procedure, or practice
  212  requirements of the commission, which shall have the force and
  213  effect of law in the compacting states.
  214         (14) “State” means any state, district, or territory of the
  215  United States.
  216         (15) “Third-party filer” means an entity that submits a
  217  product filing to the commission on behalf of an insurer.
  218         (16) “Uniform standard” means a standard adopted by the
  219  commission as of March 1, 2013, and subsequent amendments
  220  thereto if the methodology remains substantially consistent, for
  221  a product line pursuant to Article VII of this compact and shall
  222  include all of the product requirements in aggregate; provided,
  223  each uniform standard shall be construed, whether express or
  224  implied, to prohibit the use of any inconsistent, misleading, or
  225  ambiguous provisions in a product and the form of the product
  226  made available to the public shall not be unfair, inequitable,
  227  or against public policy as determined by the commission.
  228  
  229                             Article III                           
  230  
  231         COMMISSION; ESTABLISHMENT; VENUE.—
  232         (1) The compacting states hereby create and establish a
  233  joint public agency known as the Interstate Insurance Product
  234  Regulation Commission. Pursuant to Article IV of this compact,
  235  the commission has the power to develop uniform standards for
  236  product lines, receive and provide prompt review of products
  237  filed with the commission, and give approval to those product
  238  filings satisfying applicable uniform standards; provided, it is
  239  not intended for the commission to be the exclusive entity for
  240  receipt and review of insurance product filings. Nothing in this
  241  article shall prohibit any insurer from filing its product in
  242  any state in which the insurer is licensed to conduct the
  243  business of insurance and any such filing shall be subject to
  244  the laws of the state where filed.
  245         (2) The commission is a body corporate and politic and an
  246  instrumentality of the compacting states.
  247         (3) The commission is solely responsible for its
  248  liabilities, except as otherwise specifically provided in this
  249  compact.
  250         (4) Venue is proper and judicial proceedings by or against
  251  the commission shall be brought solely and exclusively in a
  252  court of competent jurisdiction where the principal office of
  253  the commission is located.
  254         (5) The commission is a not-for-profit entity, separate and
  255  distinct from the individual compacting states.
  256  
  257                             Article IV                            
  258  
  259         POWERS.—The commission shall have the following powers to:
  260         (1) Adopt rules, pursuant to Article VII, which shall have
  261  the force and effect of law and shall be binding in the
  262  compacting states to the extent and in the manner provided in
  263  this compact.
  264         (2) Exercise its rulemaking authority and establish
  265  reasonable uniform standards for products covered under the
  266  compact, and advertisement related thereto, which shall have the
  267  force and effect of law and shall be binding in the compacting
  268  states, but only for those products filed with the commission;
  269  provided a compacting state shall have the right to opt out of
  270  such uniform standard pursuant to Article VII to the extent and
  271  in the manner provided in this compact and any uniform standard
  272  established by the commission for long-term care insurance
  273  products may provide the same or greater protections for
  274  consumers as, but shall provide at least, those protections set
  275  forth in the National Association of Insurance Commissioners’
  276  Long-Term Care Insurance Model Act and Long-Term Care Insurance
  277  Model Regulation, respectively, adopted as of 2001. The
  278  commission shall consider whether any subsequent amendments to
  279  the National Association of Insurance Commissioners’ Long-Term
  280  Care Insurance Model Act or Long-Term Care Insurance Model
  281  Regulation adopted by the National Association of Insurance
  282  Commissioners require amending of the uniform standards
  283  established by the commission for long-term care insurance
  284  products.
  285         (3) Receive and review in an expeditious manner products
  286  filed with the commission and rate filings for disability income
  287  and long-term care insurance products and give approval of those
  288  products and rate filings that satisfy the applicable uniform
  289  standard, and such approval shall have the force and effect of
  290  law and be binding on the compacting states to the extent and in
  291  the manner provided in the compact.
  292         (4) Receive and review in an expeditious manner
  293  advertisement relating to long-term care insurance products for
  294  which uniform standards have been adopted by the commission, and
  295  give approval to all advertisement that satisfies the applicable
  296  uniform standard. For any product covered under this compact,
  297  other than long-term care insurance products, the commission
  298  shall have the authority to require an insurer to submit all or
  299  any part of its advertisement with respect to that product for
  300  review or approval prior to use, if the commission determines
  301  that the nature of the product is such that an advertisement of
  302  the product could have the capacity or tendency to mislead the
  303  public. The actions of the commission as provided in this
  304  subsection shall have the force and effect of law and shall be
  305  binding in the compacting states to the extent and in the manner
  306  provided in the compact.
  307         (5) Exercise its rulemaking authority and designate
  308  products and advertisement that may be subject to a self
  309  certification process without the need for prior approval by the
  310  commission.
  311         (6) Adopt operating procedures, pursuant to Article VII,
  312  which shall be binding in the compacting states to the extent
  313  and in the manner provided in this compact.
  314         (7) Bring and prosecute legal proceedings or actions in its
  315  name as the commission; provided the standing of any state
  316  insurance department to sue or be sued under applicable law
  317  shall not be affected.
  318         (8) Issue subpoenas requiring the attendance and testimony
  319  of witnesses and the production of evidence.
  320         (9) Establish and maintain offices.
  321         (10) Purchase and maintain insurance and bonds.
  322         (11) Borrow, accept, or contract for services of personnel,
  323  including, but not limited to, employees of a compacting state.
  324  Any action under this subsection concerning employees of this
  325  state may only be taken upon the express written consent of the
  326  state.
  327         (12) Hire employees, professionals, or specialists; elect
  328  or appoint officers and fix their compensation, define their
  329  duties, give them appropriate authority to carry out the
  330  purposes of the compact, and determine their qualifications; and
  331  establish the commission’s personnel policies and programs
  332  relating to, among other things, conflicts of interest, rates of
  333  compensation, and qualifications of personnel.
  334         (13) Accept any and all appropriate donations and grants of
  335  money, equipment, supplies, materials, and services and to
  336  receive, use, and dispose of the same; provided at all times the
  337  commission shall avoid any appearance of impropriety.
  338         (14) Lease, purchase, and accept appropriate gifts or
  339  donations of, or otherwise to own, hold, improve, or use, any
  340  property, real, personal, or mixed; provided at all times the
  341  commission shall avoid any appearance of impropriety.
  342         (15) Sell, convey, mortgage, pledge, lease, exchange,
  343  abandon, or otherwise dispose of any property, real, personal,
  344  or mixed.
  345         (16) Remit filing fees to compacting states as may be set
  346  forth in the bylaws, rules, or operating procedures.
  347         (17) Enforce compliance by compacting states with rules,
  348  uniform standards, operating procedures, and bylaws.
  349         (18) Provide for dispute resolution among compacting
  350  states.
  351         (19) Advise compacting states on issues relating to
  352  insurers domiciled or doing business in noncompacting
  353  jurisdictions, consistent with the purposes of this compact.
  354         (20) Provide advice and training to those personnel in
  355  state insurance departments responsible for product review and
  356  to be a resource for state insurance departments.
  357         (21) Establish a budget and make expenditures.
  358         (22) Borrow money, provided that this power does not, in
  359  any manner, obligate the financial resources of the State of
  360  Florida.
  361         (23) Appoint committees, including advisory committees,
  362  comprising members, state insurance regulators, state
  363  legislators or their representatives, insurance industry and
  364  consumer representatives, and such other interested persons as
  365  may be designated in the bylaws.
  366         (24) Provide and receive information from and to cooperate
  367  with law enforcement agencies.
  368         (25) Adopt and use a corporate seal.
  369         (26) Perform such other functions as may be necessary or
  370  appropriate to achieve the purposes of this compact consistent
  371  with the state regulation of the business of insurance.
  372  
  373                              Article V                            
  374  
  375         ORGANIZATION.—
  376         (1) Membership; voting; bylaws.—
  377         (a)1. Each compacting state shall have and be limited to
  378  one member. Each member shall be qualified to serve in that
  379  capacity pursuant to applicable law of the compacting state. Any
  380  member may be removed or suspended from office as provided by
  381  the law of the state from which he or she is appointed. Any
  382  vacancy occurring in the commission shall be filled in
  383  accordance with the laws of the compacting state in which the
  384  vacancy exists. Nothing in this article shall be construed to
  385  affect the manner in which a compacting state determines the
  386  election or appointment and qualification of its own
  387  commissioner. However, the commissioner may designate a person
  388  to represent this state on the commission, as is necessary, in
  389  order to fulfill the duties of being a member of the commission.
  390         2. The Commissioner of Insurance Regulation is hereby
  391  designated to serve as the representative of this state on the
  392  commission. However, the commissioner may designate a person to
  393  represent this state on the commission, as is necessary, in
  394  order to fulfill the duties of being a member of the commission.
  395         (b) Each member shall be entitled to one vote and shall
  396  have an opportunity to participate in the governance of the
  397  commission in accordance with the bylaws. Notwithstanding any
  398  other provision of this article, no action of the commission
  399  with respect to the adoption of a uniform standard shall be
  400  effective unless two-thirds of the members vote in favor of such
  401  action.
  402         (c) The commission shall, by a majority of the members,
  403  prescribe bylaws to govern its conduct as may be necessary or
  404  appropriate to carry out the purposes and exercise the powers of
  405  the compact, including, but not limited to:
  406         1. Establishing the fiscal year of the commission.
  407         2. Providing reasonable procedures for appointing and
  408  electing members, as well as holding meetings, of the management
  409  committee.
  410         3. Providing reasonable standards and procedures:
  411         a. For the establishment and meetings of other committees.
  412         b. Governing any general or specific delegation of any
  413  authority or function of the commission.
  414         4. Providing reasonable procedures for calling and
  415  conducting meetings of the commission that consist of a majority
  416  of commission members, ensuring reasonable advance notice of
  417  each such meeting, and providing for the right of citizens to
  418  attend each such meeting with enumerated exceptions designed to
  419  protect the public’s interest, the privacy of individuals, and
  420  insurers’ proprietary information, including, but not limited
  421  to, trade secrets. The commission may meet in camera only after
  422  a majority of the entire membership votes to close a meeting in
  423  total or in part. The commissioner of this state, or the
  424  commissioner’s designee, may attend, or otherwise participate
  425  in, a meeting or executive session that is closed in total or
  426  part to the extent such attendance or participation is
  427  consistent with Florida law. As soon as practicable, the
  428  commission must make public a copy of the vote to close the
  429  meeting revealing the vote of each member with no proxy votes
  430  allowed, and votes taken during such meeting. All notices of
  431  commission meetings, including instructions for public
  432  participation, provided to the office, the commissioner, or the
  433  commissioner’s designee shall be published in the Florida
  434  Administrative Register.
  435         5. Establishing the titles, duties, and authority and
  436  reasonable procedures for the election of the officers of the
  437  commission.
  438         6. Providing reasonable standards and procedures for the
  439  establishment of the personnel policies and programs of the
  440  commission. Notwithstanding any civil service or other similar
  441  laws of any compacting state, the bylaws shall exclusively
  442  govern the personnel policies and programs of the commission.
  443         7. Adopting a code of ethics to address permissible and
  444  prohibited activities of commission members and employees. This
  445  code does not supersede or otherwise limit the obligations and
  446  duties of this state’s commissioner or the commissioner’s
  447  designee under ethics laws or rules of the State of Florida. To
  448  the extent there is any inconsistency between the standards
  449  imposed by this code and the standards imposed under this
  450  state’s ethics laws or rules, the commissioner or the
  451  commissioner’s designee must adhere to the stricter standard of
  452  conduct.
  453         8. Providing a mechanism for winding up the operations of
  454  the commission and the equitable disposition of any surplus
  455  funds that may exist after the termination of the compact after
  456  the payment or reserving of all debts and obligations of the
  457  commission.
  458         (d) The commission shall publish its bylaws in a convenient
  459  form and file a copy of such bylaws and a copy of any amendment
  460  to such bylaws, with the appropriate agency or officer in each
  461  of the compacting states.
  462         (2) Management committee, officers, and personnel.—
  463         (a) A management committee comprising no more than 14
  464  members shall be established as follows:
  465         1. One member from each of the six compacting states with
  466  the largest premium volume for individual and group annuities,
  467  life, disability income, and long-term care insurance products,
  468  determined from the records of the National Association of
  469  Insurance Commissioners for the prior year.
  470         2. Four members from those compacting states with at least
  471  2 percent of the market based on the premium volume described
  472  above, other than the six compacting states with the largest
  473  premium volume, selected on a rotating basis as provided in the
  474  bylaws.
  475         3. Four members from those compacting states with less than
  476  2 percent of the market, based on the premium volume described
  477  above, with one selected from each of the four zone regions of
  478  the National Association of Insurance Commissioners as provided
  479  in the bylaws.
  480         (b) The management committee shall have such authority and
  481  duties as may be set forth in the bylaws, including, but not
  482  limited to:
  483         1. Managing the affairs of the commission in a manner
  484  consistent with the bylaws and purposes of the commission.
  485         2. Establishing and overseeing an organizational structure
  486  within, and appropriate procedures for, the commission to
  487  provide for the creation of uniform standards and other rules,
  488  receipt and review of product filings, administrative and
  489  technical support functions, review of decisions regarding the
  490  disapproval of a product filing, and the review of elections
  491  made by a compacting state to opt out of a uniform standard;
  492  provided a uniform standard shall not be submitted to the
  493  compacting states for adoption unless approved by two-thirds of
  494  the members of the management committee.
  495         3. Overseeing the offices of the commission.
  496         4. Planning, implementing, and coordinating communications
  497  and activities with other state, federal, and local government
  498  organizations in order to advance the goals of the commission.
  499         (c) The commission shall elect annually officers from the
  500  management committee, with each having such authority and duties
  501  as may be specified in the bylaws.
  502         (d) The management committee may, subject to the approval
  503  of the commission, appoint or retain an executive director for
  504  such period, upon such terms and conditions, and for such
  505  compensation as the commission may deem appropriate. The
  506  executive director shall serve as secretary to the commission
  507  but shall not be a member of the commission. The executive
  508  director shall hire and supervise such other staff as may be
  509  authorized by the commission.
  510         (3) Legislative and advisory committees.—
  511         (a) A legislative committee comprised of state legislators
  512  or their designees shall be established to monitor the
  513  operations of and make recommendations to the commission,
  514  including the management committee; provided the manner of
  515  selection and term of any legislative committee member shall be
  516  as set forth in the bylaws. Prior to the adoption by the
  517  commission of any uniform standard, revision to the bylaws,
  518  annual budget, or other significant matter as may be provided in
  519  the bylaws, the management committee shall consult with and
  520  report to the legislative committee.
  521         (b) The commission shall establish two advisory committees,
  522  one comprising consumer representatives independent of the
  523  insurance industry and the other comprising insurance industry
  524  representatives.
  525         (c) The commission may establish additional advisory
  526  committees as the bylaws may provide for the carrying out of
  527  commission functions.
  528         (4) Corporate records of the commission.—The commission
  529  shall maintain its corporate books and records in accordance
  530  with the bylaws.
  531         (5) Qualified immunity, defense and indemnification.—
  532         (a) The members, officers, executive director, employees,
  533  and representatives of the commission shall be immune from suit
  534  and liability, either personally or in their official capacity,
  535  for any claim for damage to or loss of property or personal
  536  injury or other civil liability caused by or arising out of any
  537  actual or alleged act, error, or omission that occurred, or that
  538  the person against whom the claim is made had a reasonable basis
  539  for believing occurred within the scope of commission
  540  employment, duties, or responsibilities; provided nothing in
  541  this paragraph shall be construed to protect any such person
  542  from suit or liability for any damage, loss, injury, or
  543  liability caused by the intentional or willful and wanton
  544  misconduct of that person.
  545         (b) The liability of the members, officers, executive
  546  director, employees, and representatives of the commission
  547  acting within the scope of such persons employment or duties,
  548  for acts, errors, or omissions occurring within this state, may
  549  not exceed the limits of liability set forth under the
  550  constitution and laws of this state for state officials,
  551  employees, and agents. The commission is an instrumentality of
  552  the state for the purposes of any such action. This subsection
  553  does not protect such persons from suit or liability for damage,
  554  loss, injury, or liability caused by a criminal act or the
  555  intentional or willful and wanton misconduct of such person.
  556         (c) The commission shall defend any member, officer,
  557  executive director, employee, or representative of the
  558  commission in any civil action seeking to impose liability
  559  arising out of any actual or alleged act, error, or omission
  560  that occurred within the scope of commission employment, duties,
  561  or responsibilities, or where the person against whom the claim
  562  is made has a reasonable basis for believing occurred within the
  563  scope of commission employment, duties, or responsibilities if
  564  the actual or alleged act, error, or omission did not result
  565  from that person’s intentional or willful and wanton misconduct.
  566  This article does not prohibit that person from retaining his or
  567  her own counsel.
  568         (d) The commission shall indemnify and hold harmless any
  569  member, officer, executive director, employee, or representative
  570  of the commission for the amount of any settlement or judgment
  571  obtained against that person arising out of any actual or
  572  alleged act, error, or omission that occurred within the scope
  573  of commission employment, duties, or responsibilities, or that
  574  such person had a reasonable basis for believing occurred within
  575  the scope of commission employment, duties, or responsibilities;
  576  provided the actual or alleged act, error, or omission did not
  577  result from the intentional or willful and wanton misconduct of
  578  that person.
  579  
  580                             Article VI                            
  581  
  582         MEETINGS; ACTS.—
  583         (1) The commission shall meet and take such actions as are
  584  consistent with the provisions of this compact and the bylaws.
  585         (2) Each member of the commission shall have the right and
  586  power to cast a vote to which that compacting state is entitled
  587  and to participate in the business and affairs of the
  588  commission. A member shall vote in person or by such other means
  589  as provided in the bylaws. The bylaws may provide for members’
  590  participation in meetings by telephone or other means of
  591  communication.
  592         (3) The commission shall meet at least once during each
  593  calendar year. Additional meetings shall be held as set forth in
  594  the bylaws.
  595  
  596                             Article VII                           
  597  
  598         RULES AND OPERATING PROCEDURES; RULEMAKING FUNCTIONS OF THE
  599  COMMISSION; OPTING OUT OF UNIFORM STANDARDS.—
  600         (1) Rulemaking authority.—The commission shall adopt
  601  reasonable rules, including uniform standards, and operating
  602  procedures in order to effectively and efficiently achieve the
  603  purposes of this compact. Notwithstanding such requirement, if
  604  the commission exercises its rulemaking authority in a manner
  605  that is beyond the scope of the purposes of this compact or the
  606  powers granted under this compact, such action by the commission
  607  shall be invalid and have no force and effect.
  608         (2) Rulemaking procedure.—Rules and operating procedures
  609  shall be made pursuant to a rulemaking process that conforms to
  610  the Model State Administrative Procedure Act of 1981, as
  611  amended, as may be appropriate to the operations of the
  612  commission. Before the commission adopts a uniform standard, the
  613  commission shall give written notice to the relevant state
  614  legislative committees in each compacting state responsible for
  615  insurance issues of its intention to adopt the uniform standard.
  616  The commission in adopting a uniform standard shall consider
  617  fully all submitted materials and issue a concise explanation of
  618  its decision.
  619         (3) Effective date and opt out of a uniform standard.—A
  620  uniform standard shall become effective 90 days after its
  621  adoption by the commission or such later date as the commission
  622  may determine; provided a compacting state may opt out of a
  623  uniform standard as provided in this act. The term “opt out”
  624  means any action by a compacting state to decline to adopt or
  625  participate in an adopted uniform standard. All other rules and
  626  operating procedures, and amendments thereto, shall become
  627  effective as of the date specified in each rule, operating
  628  procedure, or amendment.
  629         (4) Opt out procedure.—
  630         (a) A compacting state may opt out of a uniform standard by
  631  legislation or regulation adopted by the compacting state under
  632  such state’s Administrative Procedure Act. If a compacting state
  633  elects to opt out of a uniform standard by regulation, such
  634  state must:
  635         1. Give written notice to the commission no later than 10
  636  business days after the uniform standard is adopted, or at the
  637  time the state becomes a compacting state.
  638         2. Find that the uniform standard does not provide
  639  reasonable protections to the citizens of the state, given the
  640  conditions in the state.
  641         (b) The commissioner of a compacting state other than this
  642  state shall make specific findings of fact and conclusions of
  643  law, based on a preponderance of the evidence, detailing the
  644  conditions in the state which warrant a departure from the
  645  uniform standard and determining that the uniform standard would
  646  not reasonably protect the citizens of the state. The
  647  commissioner must consider and balance the following factors and
  648  find that the conditions in the state and needs of the citizens
  649  of the state outweigh:
  650         1. The intent of the Legislature to participate in, and the
  651  benefits of, an interstate agreement to establish national
  652  uniform consumer protections for the products subject to this
  653  compact.
  654         2. The presumption that a uniform standard adopted by the
  655  commission provides reasonable protections to consumers of the
  656  relevant product.
  657  
  658  Notwithstanding this subsection, a compacting state may, at the
  659  time of its enactment of this compact, prospectively opt out of
  660  all uniform standards involving long-term care insurance
  661  products by expressly providing for such opt out in the enacted
  662  compact, and such an opt out shall not be treated as a material
  663  variance in the offer or acceptance of any state to participate
  664  in this compact. Such an opt out shall be effective at the time
  665  of enactment of this compact by the compacting state and shall
  666  apply to all existing uniform standards involving long-term care
  667  insurance products and those subsequently adopted.
  668         (5) Effect of opting out.—If a compacting state elects to
  669  opt out of a uniform standard, the uniform standard shall remain
  670  applicable in the compacting state electing to opt out until
  671  such time as the opt out legislation is enacted into law or the
  672  regulation opting out becomes effective. Once the opt out of a
  673  uniform standard by a compacting state becomes effective as
  674  provided under the laws of that state, the uniform standard
  675  shall have no further force and effect in that state unless and
  676  until the legislation or regulation implementing the opt out is
  677  repealed or otherwise becomes ineffective under the laws of the
  678  state. If a compacting state opts out of a uniform standard
  679  after the uniform standard has been made effective in that
  680  state, the opt out shall have the same prospective effect as
  681  provided under Article XIV for withdrawals.
  682         (6) Stay of uniform standard.—If a compacting state has
  683  formally initiated the process of opting out of a uniform
  684  standard by regulation, and while the regulatory opt out is
  685  pending, the compacting state may petition the commission, at
  686  least 15 days before the effective date of the uniform standard,
  687  to stay the effectiveness of the uniform standard in that state.
  688  The commission may grant a stay if the commission determines the
  689  regulatory opt out is being pursued in a reasonable manner and
  690  there is a likelihood of success. If a stay is granted or
  691  extended by the commission, the stay or extension thereof may
  692  postpone the effective date by up to 90 days, unless
  693  affirmatively extended by the commission; provided a stay may
  694  not be permitted to remain in effect for more than 1 year unless
  695  the compacting state can show extraordinary circumstances which
  696  warrant a continuance of the stay, including, but not limited
  697  to, the existence of a legal challenge which prevents the
  698  compacting state from opting out. A stay may be terminated by
  699  the commission upon notice that the rulemaking process has been
  700  terminated.
  701         (7) Judicial review.—Within 30 days after a rule or
  702  operating procedure is adopted, any person may file a petition
  703  for judicial review of the rule or operating procedure; provided
  704  the filing of such a petition shall not stay or otherwise
  705  prevent the rule or operating procedure from becoming effective
  706  unless the court finds that the petitioner has a substantial
  707  likelihood of success. The court shall give deference to the
  708  actions of the commission consistent with applicable law and
  709  shall not find the rule or operating procedure to be unlawful if
  710  the rule or operating procedure represents a reasonable exercise
  711  of the commission’s authority.
  712  
  713                            Article VIII                           
  714  
  715         COMMISSION RECORDS AND ENFORCEMENT.—
  716         (1) The commission shall adopt rules establishing
  717  conditions and procedures for public inspection and copying of
  718  its information and official records, except such information
  719  and records involving the privacy of individuals and insurers’
  720  trade secrets. The commission may adopt additional rules under
  721  which the commission may make available to federal and state
  722  agencies, including law enforcement agencies, records and
  723  information otherwise exempt from disclosure and may enter into
  724  agreements with such agencies to receive or exchange information
  725  or records subject to nondisclosure and confidentiality
  726  provisions.
  727         (2) Except as to privileged records, data, and information,
  728  the laws of any compacting state pertaining to confidentiality
  729  or nondisclosure shall not relieve any compacting state
  730  commissioner of the duty to disclose any relevant records, data,
  731  or information to the commission; provided disclosure to the
  732  commission shall not be deemed to waive or otherwise affect any
  733  confidentiality requirement; and further provided, except as
  734  otherwise expressly provided in this compact, the commission
  735  shall not be subject to the compacting state’s laws pertaining
  736  to confidentiality and nondisclosure with respect to records,
  737  data, and information in its possession. Confidential
  738  information of the commission shall remain confidential after
  739  such information is provided to any commissioner; however, all
  740  requests from the public to inspect or copy records, data, or
  741  information of the commission, wherever received, by and in the
  742  possession of the office, commissioner, or the commissioner’s
  743  designee shall be subject to chapter 119, Florida Statutes.
  744         (3) The commission shall monitor compacting states for
  745  compliance with duly adopted bylaws, rules, uniform standards,
  746  and operating procedures. The commission shall notify any
  747  noncomplying compacting state in writing of its noncompliance
  748  with commission bylaws, rules, or operating procedures. If a
  749  noncomplying compacting state fails to remedy its noncompliance
  750  within the time specified in the notice of noncompliance, the
  751  compacting state shall be deemed to be in default as set forth
  752  in Article XIV of this compact.
  753         (4) The commissioner of any state in which an insurer is
  754  authorized to do business or is conducting the business of
  755  insurance shall continue to exercise his or her authority to
  756  oversee the market regulation of the activities of the insurer
  757  in accordance with the provisions of the state’s law. The
  758  commissioner’s enforcement of compliance with the compact is
  759  governed by the following provisions:
  760         (a) With respect to the commissioner’s market regulation of
  761  a product or advertisement that is approved or certified to the
  762  commission, the content of the product or advertisement shall
  763  not constitute a violation of the provisions, standards, or
  764  requirements of the compact except upon a final order of the
  765  commission, issued at the request of a commissioner after prior
  766  notice to the insurer and an opportunity for hearing before the
  767  commission.
  768         (b) Before a commissioner may bring an action for violation
  769  of any provision, standard, or requirement of the compact
  770  relating to the content of an advertisement not approved or
  771  certified to the commission, the commission, or an authorized
  772  commission officer or employee, must authorize the action.
  773  However, authorization pursuant to this paragraph does not
  774  require notice to the insurer, opportunity for hearing, or
  775  disclosure of requests for authorization or records of the
  776  commission’s action on such requests.
  777  
  778                             Article IX                            
  779  
  780         DISPUTE RESOLUTION.—The commission shall attempt, upon the
  781  request of a member, to resolve any disputes or other issues
  782  that are subject to this compact and which may arise between two
  783  or more compacting states, or between compacting states and
  784  noncompacting states, and the commission shall adopt an
  785  operating procedure providing for resolution of such disputes.
  786  
  787                              Article X                            
  788  
  789         PRODUCT FILING AND APPROVAL.—
  790         (1) Insurers and third-party filers seeking to have a
  791  product approved by the commission shall file the product with
  792  and pay applicable filing fees to the commission. Nothing in
  793  this compact shall be construed to restrict or otherwise prevent
  794  an insurer from filing its product with the insurance department
  795  in any state in which the insurer is licensed to conduct the
  796  business of insurance and such filing shall be subject to the
  797  laws of the states where filed.
  798         (2) The commission shall establish appropriate filing and
  799  review processes and procedures pursuant to commission rules and
  800  operating procedures. Notwithstanding any provision of this
  801  article, the commission shall adopt rules to establish
  802  conditions and procedures under which the commission will
  803  provide public access to product filing information. In
  804  establishing such rules, the commission shall consider the
  805  interests of the public in having access to such information, as
  806  well as protection of personal medical and financial information
  807  and trade secrets, that may be contained in a product filing or
  808  supporting information.
  809         (3) Any product approved by the commission may be sold or
  810  otherwise issued in those compacting states for which the
  811  insurer is legally authorized to do business.
  812  
  813                             Article XI                            
  814  
  815         REVIEW OF COMMISSION DECISIONS REGARDING FILINGS.—
  816         (1) Within 30 days after the commission has given notice of
  817  a disapproved product or advertisement filed with the
  818  commission, the insurer or third-party filer whose filing was
  819  disapproved may appeal the determination to a review panel
  820  appointed by the commission. The commission shall adopt rules to
  821  establish procedures for appointing such review panels and
  822  provide for notice and hearing. An allegation that the
  823  commission, in disapproving a product or advertisement filed
  824  with the commission, acted arbitrarily, capriciously, or in a
  825  manner that is an abuse of discretion or otherwise not in
  826  accordance with the law, is subject to judicial review in
  827  accordance with subsection (4) of Article III.
  828         (2) The commission shall have authority to monitor, review,
  829  and reconsider products and advertisement subsequent to their
  830  filing or approval upon a finding that the product does not meet
  831  the relevant uniform standard. Where appropriate, the commission
  832  may withdraw or modify its approval after proper notice and
  833  hearing, subject to the appeal process in subsection (1).
  834  
  835                             Article XII                           
  836  
  837         FINANCE.—
  838         (1) The commission shall pay or provide for the payment of
  839  the reasonable expenses of the commission’s establishment and
  840  organization. To fund the cost of the commission’s initial
  841  operations, the commission may accept contributions and other
  842  forms of funding from the National Association of Insurance
  843  Commissioners, compacting states, and other sources.
  844  Contributions and other forms of funding from other sources
  845  shall be of such a nature that the independence of the
  846  commission concerning the performance of commission duties shall
  847  not be compromised.
  848         (2) The commission shall collect a filing fee from each
  849  insurer and third-party filer filing a product with the
  850  commission to cover the cost of the operations and activities of
  851  the commission and its staff in a total amount sufficient to
  852  cover the commission’s annual budget.
  853         (3) The commission’s budget for a fiscal year shall not be
  854  approved until the budget has been subject to notice and comment
  855  as set forth in Article VII.
  856         (4) The commission shall be exempt from all taxation in and
  857  by the compacting states.
  858         (5) The commission shall not pledge the credit of any
  859  compacting state, except by and with the appropriate legal
  860  authority of that compacting state.
  861         (6) The commission shall keep complete and accurate
  862  accounts of all its internal receipts, including grants and
  863  donations, and disbursements of all funds under its control. The
  864  internal financial accounts of the commission shall be subject
  865  to the accounting procedures established under its bylaws. The
  866  financial accounts and reports including the system of internal
  867  controls and procedures of the commission shall be audited
  868  annually by an independent certified public accountant. Upon the
  869  determination of the commission, but no less frequently than
  870  every 3 years, the review of the independent auditor shall
  871  include a management and performance audit of the commission.
  872  The commission shall make an annual report to the Governor and
  873  the presiding officers of the Legislature of the compacting
  874  states, which shall include a report of the independent audit.
  875  The commission’s internal accounts shall not be confidential and
  876  such materials may be shared with the commissioner of any
  877  compacting state upon request; provided any work papers related
  878  to any internal or independent audit and any information
  879  regarding the privacy of individuals and insurers’ proprietary
  880  information, including trade secrets, shall remain confidential.
  881         (7) No compacting state shall have any claim to or
  882  ownership of any property held by or vested in the commission or
  883  to any commission funds held pursuant to the provisions of this
  884  compact.
  885  
  886                            Article XIII                           
  887  
  888         COMPACTING STATES, EFFECTIVE DATE, AMENDMENT.—
  889         (1) Any state is eligible to become a compacting state.
  890         (2) The compact shall become effective and binding upon
  891  legislative enactment of the compact into law by two compacting
  892  states; provided the commission shall become effective for
  893  purposes of adopting uniform standards for, reviewing, and
  894  giving approval or disapproval of, products filed with the
  895  commission that satisfy applicable uniform standards only after
  896  26 states are compacting states or, alternatively, by states
  897  representing greater than 40 percent of the premium volume for
  898  life insurance, annuity, disability income, and long-term care
  899  insurance products, based on records of the National Association
  900  of Insurance Commissioners for the prior year. Thereafter, the
  901  compact shall become effective and binding as to any other
  902  compacting state upon enactment of the compact into law by that
  903  state.
  904         (3) Amendments to the compact may be proposed by the
  905  commission for enactment by the compacting states. No amendment
  906  shall become effective and binding upon the commission and the
  907  compacting states unless and until all compacting states enact
  908  the amendment into law.
  909  
  910                             Article XIV                           
  911  
  912         WITHDRAWAL; DEFAULT; DISSOLUTION.—
  913         (1) Withdrawal.—
  914         (a) Once effective, the compact shall continue in force and
  915  remain binding upon each and every compacting state; provided a
  916  compacting state may withdraw from the compact by enacting a law
  917  specifically repealing the law which enacted the compact into
  918  law.
  919         (b) The effective date of withdrawal is the effective date
  920  of the repealing law. However, the withdrawal shall not apply to
  921  any product filings approved or self-certified, or any
  922  advertisement of such products, on the date the repealing law
  923  becomes effective, except by mutual agreement of the commission
  924  and the withdrawing state unless the approval is rescinded by
  925  the withdrawing state as provided in paragraph (e).
  926         (c) The commissioner of the withdrawing state shall
  927  immediately notify the management committee in writing upon the
  928  introduction of legislation repealing this compact in the
  929  withdrawing state.
  930         (d) The commission shall notify the other compacting states
  931  of the introduction of such legislation within 10 days after the
  932  commission’s receipt of notice of such legislation.
  933         (e) The withdrawing state is responsible for all
  934  obligations, duties, and liabilities incurred through the
  935  effective date of withdrawal, including any obligations, the
  936  performance of which extend beyond the effective date of
  937  withdrawal, except to the extent those obligations may have been
  938  released or relinquished by mutual agreement of the commission
  939  and the withdrawing state. The commission’s approval of products
  940  and advertisement prior to the effective date of withdrawal
  941  shall continue to be effective and be given full force and
  942  effect in the withdrawing state unless formally rescinded by the
  943  withdrawing state in the same manner as provided by the laws of
  944  the withdrawing state for the prospective disapproval of
  945  products or advertisement previously approved under state law.
  946         (f) Reinstatement following withdrawal of any compacting
  947  state shall occur upon the effective date of the withdrawing
  948  state reenacting the compact.
  949         (2) Default.—
  950         (a) If the commission determines that any compacting state
  951  has at any time defaulted in the performance of any of its
  952  obligations or responsibilities under this compact, the bylaws,
  953  or duly adopted rules or operating procedures, after notice and
  954  hearing as set forth in the bylaws, all rights, privileges, and
  955  benefits conferred by this compact on the defaulting state shall
  956  be suspended from the effective date of default as fixed by the
  957  commission. The grounds for default include, but are not limited
  958  to, failure of a compacting state to perform its obligations or
  959  responsibilities, and any other grounds designated in commission
  960  rules. The commission shall immediately notify the defaulting
  961  state in writing of the defaulting state’s suspension pending a
  962  cure of the default. The commission shall stipulate the
  963  conditions and the time period within which the defaulting state
  964  must cure its default. If the defaulting state fails to cure the
  965  default within the time period specified by the commission, the
  966  defaulting state shall be terminated from the compact and all
  967  rights, privileges, and benefits conferred by this compact shall
  968  be terminated from the effective date of termination.
  969         (b) Product approvals by the commission or product self
  970  certifications, or any advertisement in connection with such
  971  product that are in force on the effective date of termination
  972  shall remain in force in the defaulting state in the same manner
  973  as if the defaulting state had withdrawn voluntarily pursuant to
  974  subsection (1).
  975         (c) Reinstatement following termination of any compacting
  976  state requires a reenactment of the compact.
  977         (3) Dissolution of compact.—
  978         (a) The compact dissolves effective upon the date of the
  979  withdrawal or default of the compacting state which reduces
  980  membership in the compact to a single compacting state.
  981         (b) Upon the dissolution of this compact, the compact
  982  becomes null and void and shall be of no further force or effect
  983  and the business and affairs of the commission shall be
  984  concluded and any surplus funds shall be distributed in
  985  accordance with the bylaws.
  986  
  987                             Article XV                            
  988  
  989         SEVERABILITY; CONSTRUCTION.—
  990         (1) The provisions of this compact are severable and if any
  991  phrase, clause, sentence, or provision is deemed unenforceable,
  992  the remaining provisions of the compact shall be enforceable.
  993         (2) The provisions of this compact shall be liberally
  994  construed to effectuate its purposes.
  995  
  996                             Article XVI                           
  997  
  998         BINDING EFFECT OF COMPACT AND OTHER LAWS.—
  999         (1) Binding effect of this compact.—
 1000         (a) All lawful actions of the commission, including all
 1001  rules and operating procedures adopted by the commission, are
 1002  binding upon the compacting states.
 1003         (b) All agreements between the commission and the
 1004  compacting states are binding in accordance with their terms.
 1005         (c) Upon the request of a party to a conflict over the
 1006  meaning or interpretation of commission actions, and upon a
 1007  majority vote of the compacting states, the commission may issue
 1008  advisory opinions regarding the meaning or interpretation in
 1009  dispute.
 1010         (d) If any provision of this compact exceeds the
 1011  constitutional limits imposed on the Legislature of any
 1012  compacting state, the obligations, duties, powers, or
 1013  jurisdiction sought to be conferred by that provision upon the
 1014  commission shall be ineffective as to that compacting state and
 1015  those obligations, duties, powers, or jurisdiction shall remain
 1016  in the compacting state and shall be exercised by the agency of
 1017  such state to which those obligations, duties, powers, or
 1018  jurisdiction are delegated by law in effect at the time this
 1019  compact becomes effective.
 1020         (2) Other laws.—
 1021         (a) Nothing in this compact prevents the enforcement of any
 1022  other law of a compacting state, except as provided in paragraph
 1023  (b).
 1024         (b) For any product approved or certified to the
 1025  commission, the rules, uniform standards, and any other
 1026  requirements of the commission shall constitute the exclusive
 1027  provisions applicable to the content, approval, and
 1028  certification of such products. For advertisement that is
 1029  subject to the commission’s authority, any rule, uniform
 1030  standard, or other requirement of the commission which governs
 1031  the content of the advertisement shall constitute the exclusive
 1032  provision that a commissioner may apply to the content of the
 1033  advertisement. Notwithstanding this paragraph, no action taken
 1034  by the commission shall abrogate or restrict:
 1035         1. The access of any person to state courts;
 1036         2. Remedies available under state law related to breach of
 1037  contract, tort, or other laws not specifically directed to the
 1038  content of the product;
 1039         3. State law relating to the construction of insurance
 1040  contracts; or
 1041         4. The authority of the attorney general of the state,
 1042  including, but not limited to, maintaining any actions or
 1043  proceedings, as authorized by law.
 1044         (c) All insurance products filed with individual states
 1045  shall be subject to the laws of those states.
 1046         Section 3. Opt out from long-term care products standards.
 1047  Pursuant to Article VII of the Interstate Insurance Product
 1048  Regulation Compact, adopted by this act, this state
 1049  prospectively opts out of all uniform standards adopted by the
 1050  Interstate Insurance Product Regulation Commission involving
 1051  long-term care insurance products, and such opt out may not be
 1052  treated as a material variance in the offer or acceptance of
 1053  this state to participate in the compact.
 1054         Section 4. Effective date of compact standards; opt out
 1055  procedures; state law exemptions; legislative notice.—
 1056         (1) Except as provided in section 3 of this act and this
 1057  section, all uniform standards adopted by the Interstate
 1058  Insurance Product Regulation Commission as of March 1, 2013, are
 1059  adopted by this state.
 1060         (2) Notwithstanding subsections (3), (4), (5), and (6) of
 1061  Article VII of the Interstate Insurance Product Regulation
 1062  Compact as adopted by this act, it is the policy of this state
 1063  as a participant in the compact:
 1064         (a) To opt out, and for the Office of Insurance Regulation
 1065  to opt out, of any new uniform standard, or amendments to
 1066  existing uniform standards, adopted by the Interstate Insurance
 1067  Product Regulation Commission after March 1, 2013, if such
 1068  amendments substantially alter or add to existing uniform
 1069  standards adopted by this state pursuant to subsection (1) until
 1070  such time as this state enacts legislation to adopt or opt out
 1071  of, adopts rules to adopt or opt out of, or executes an order to
 1072  adopt or opt out of new uniform standards or amendments to
 1073  existing standards adopted by the commission after March 1,
 1074  2013.
 1075         (b) That, notwithstanding the adoption of the Interstate
 1076  Product Regulation Compact pursuant to this act, participation
 1077  in the compact is contingent upon a determination by the
 1078  Commissioner of Insurance Regulation that the uniform standards
 1079  of the compact provide consumer protections equivalent to those
 1080  under state law and, if the commissioner determines otherwise,
 1081  an order issued by the Office of Insurance Regulation
 1082  constitutes the action required by the commission to not join
 1083  the compact, or to opt out of, or to stay the effect of, any
 1084  uniform standard not otherwise opted out of pursuant to this
 1085  act.
 1086         (c) That the authority under the compact to opt out of a
 1087  uniform standard includes an order issued under chapter 120,
 1088  Florida Statutes, the Administrative Procedure Act.
 1089         (3) In addition to any other uniform standards the state
 1090  may opt out of pursuant to subsection (2), effective October 1,
 1091  2014, this subsection constitutes the legislation required to be
 1092  enacted pursuant to subsections (4) and (5) of Article VII of
 1093  the Interstate Insurance Product Regulation Compact by which
 1094  this state opts out of the following uniform standards adopted
 1095  by the Interstate Insurance Product Regulation Commission:
 1096         a. The 10-day period for the unconditional refund of
 1097  premiums, plus any fees or charges under s. 626.99, Florida
 1098  Statutes.
 1099         b. Underwriting criteria limiting the amount, extent, or
 1100  kind of life insurance based on past or future travel in a
 1101  manner that is inconsistent with s. 626.9541(1)(dd), Florida
 1102  Statutes, as implemented by the Office of Insurance Regulation.
 1103         (4) It is the policy of this state that the exclusivity
 1104  provision of paragraph (2)(b) of Article XVI of the Interstate
 1105  Insurance Product Regulation Compact applies only to those
 1106  uniform standards adopted by the Interstate Insurance Product
 1107  Regulation Commission in accordance with the terms of the
 1108  compact and does not apply to those standards that this state
 1109  has opted out of pursuant to this act or the compact. In
 1110  addition, it is the policy of this state that under the
 1111  exclusivity provision, standards adopted by this state are not
 1112  limited or rendered inapplicable by the absence of a standard
 1113  adopted by the commission. Notwithstanding paragraph (2)(b) of
 1114  Article XVI of the compact, standards adopted by this state
 1115  continue to apply to the content, approval, and certification of
 1116  products in this state, including, but not limited to, the
 1117  following:
 1118         a. Prohibition of a surrender or deferred sales charge of
 1119  more than 10 percent pursuant to s. 627.4554, Florida Statutes.
 1120         b. Notification to an applicant of the right to designate a
 1121  secondary addressee at the time of application under s.
 1122  627.4555, Florida Statutes.
 1123         c. Notification of secondary addressees at least 21 days
 1124  before the impending lapse of a policy under s. 627.4555,
 1125  Florida Statutes.
 1126         d. Inclusion of a clear statement pursuant to s. 627.803,
 1127  Florida Statutes, that the benefits, values, or premiums under a
 1128  variable annuity are indeterminate and may vary.
 1129         e. Interest on surrender proceeds pursuant to s. 627.482,
 1130  Florida Statutes.
 1131         (5) After enactment of this section, if the Interstate
 1132  Insurance Product Regulation Commission adopts any new uniform
 1133  standard or amendment to the existing uniform standard as
 1134  specified in subsection (2), the Office of Insurance Regulation
 1135  shall immediately notify the Legislature of such new standard or
 1136  amendment. If the office or the court finds that the procedure
 1137  specified in subsection (2) has not been followed, notice shall
 1138  be given to the Legislature.
 1139         Section 5. Notwithstanding subsection (4) of Article XII of
 1140  the Interstate Insurance Product Regulation Compact, the
 1141  Interstate Insurance Product Regulation Commission is subject
 1142  to:
 1143         (1) State unemployment or reemployment taxes imposed
 1144  pursuant to chapter 443, Florida Statutes, in compliance with
 1145  the Federal Unemployment Tax Act, for any persons employed by
 1146  the commission who perform services for it within this state.
 1147         (2) Taxation on any commission business or activity
 1148  conducted or performed in this state.
 1149         Section 6. Access to records.—
 1150         (1) Notwithstanding subsections (1) and (2) of Article
 1151  VIII, subsection (2) of Article X, and subsection (6) of Article
 1152  XII of the Interstate Insurance Product Regulation Compact, a
 1153  request by a resident of this state for public inspection and
 1154  copying of information, data, or official records that includes:
 1155         (a) An insurer’s trade secrets shall be referred to the
 1156  Commissioner of Insurance Regulation who shall respond to the
 1157  request, with the cooperation and assistance of the Financial
 1158  Services Commission, in accordance with s. 624.4213, Florida
 1159  Statutes; or
 1160         (b) Matters of privacy of individuals shall be referred to
 1161  the Commissioner of Insurance Regulation who shall respond to
 1162  the request, with the cooperation and assistance of the
 1163  Financial Services Commission, in accordance with s. 119.07(1),
 1164  Florida Statutes.
 1165         (2) This act does not abrogate the right of a person to
 1166  access information consistent with the State Constitution and
 1167  laws of this state.
 1168         Section 7. The Financial Services Commission may adopt
 1169  rules to administer this act.
 1170         Section 8. If any part of section 3 or section 4 of this
 1171  act is invalidated by the courts, such ruling renders the entire
 1172  act invalid.
 1173         Section 9. This act shall take effect July 1, 2014.