Weekly Tip: Understanding the Insurance Compact Rulemaking Process Part 3 – Public Hearings & Adoption

 

Weekly Tips

Understanding the Insurance Compact Rulemaking Process, Part 3 - Public Hearings & Adoption

8/03/2017

Continuing the series of Weekly Tips reviewing the development of uniform standards, this week we will review what happens to proposed uniform standards once the 60-day comment period has expired.

All uniform standards are subject to a public hearing during a meeting of the Management Committee before they are considered for approval by the Management Committee and adoption by the Commission. While a public hearing is not required by the Rulemaking Rule, the Insurance Compact follows this practice to enhance transparency and participation in the uniform standards development process. During the public hearing, all interested parties participating in the meeting are afforded the opportunity to provide comments. Any parties that already submitted written comments during the 60-day public comment period are offered the opportunity to expand on those comments during the public hearing.

If comments have been received that require further review of the proposed uniform standards, the Management Committee may ask the Product Standards Committee to review the comments to address any potential revisions to the proposal based on those comments before final action is taken. If asked to review comments, the Product Standards Committee will present their recommendations to the Management Committee during its next meeting. The Management Committee may approve the rule as proposed, approve the rule with further changes or disapprove the rule.

Two votes are conducted in order for a new or amended uniform standard to be considered adopted – one by the Management Committee and one by the Commission. Two-thirds (2/3) of the Management Committee must first vote in favor to approve the uniform standards. Then, two-thirds of the full Commission must vote in favor to adopt the uniform standards.

In the coming weeks, we will review what happens after the uniform standards have been adopted by the Commission before company filers may use them for their product filing submissions. If you have any questions about this Weekly Tip, or the Insurance Compact, please contact the Insurance Compact Office at Comments@insurancecompact.org.