Weekly Tip: Understanding the Insurance Compact Rulemaking Process Part 4 – Adopted Uniform Standards

 

Weekly Tips

Understanding the Insurance Compact Rulemaking Process Part 4 – Adopted Uniform Standards

Continuing in the series of Weekly Tips reviewing the development of uniform standards, this week we will review what happens to new and amended uniform standards once they have been adopted by the Commission.

In order to be effective for use by company filers, the Uniform Standards must be approved by a super-majority, meaning two-thirds, of both the Management Committee and Commission. Once this has occurred, the Insurance Compact Office must wait a period of 10 days before the Uniform Standards are published for a period of 90 days. We call the publication of the adopted Uniform Standards "promulgation."

On the day of promulgation, the Uniform Standards become available on the Rulemaking Record on the Insurance Compact website and are emailed to the Commission members and their staff. When the Uniform Standards are posted to the Record, the effective date is posted in a prominent area so that company filers can easily find the date. Once the Uniform Standards are moved to the Record, they will reside on that page of the website in perpetuity, and will no longer be available on the Docket. Previous versions of an amended Uniform Standard and documentation from the review and adoption process remain accessible in the Standards History portion of the Record item. Any Commission member state that has opted out of the Uniform Standard is noted prominently on the Record entry for each applicable Uniform Standard and the state is ineligible for selection in a SERFF filing subject to that uniform standard.

After the 90 day promulgation period has passed, the Uniform Standards become effective for filing and review purposes. This means a filing submitted on or after the effective date is reviewed for compliance with the new or amended Uniform Standards. A commonly asked question is whether previously approved filings have to be re-submitted to comply with a newly amended Uniform Standard. The answer is: only if the Uniform Standards so state. To date, it has not been required to re-file or amend an approved product to comply with an amended Uniform Standard going forward. The cover page of newly amended Uniform Standards has consistently stated,

"The amendments apply only to new filings received after the effective date of the amendments. It is not necessary to resubmit previously approved forms to comply with these amendments, or to suspend use of previously approved forms that do not comply with these amendments. See the Transmittal Memo under the Standards History on the Record for a more detailed description of the amendments."

The Insurance Compact Office would provide ample advance notice and written guidance in the scenario where previously approved products were required to comply with new Uniform Standards provisions.

Next week, we will review the best ways for Company Filers to participate in the rulemaking process. If you have any questions about this Weekly Tip, or the Insurance Compact, please contact the Insurance Compact Office at Comments@insurancecompact.org.