Print
The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
138A
:
SURPLUS LINES INSURANCE MULTI-STATE COMPLIANCE COMPACT
§
5057. Organization of the Commission
(a)(1)
Membership, voting, and bylaws. Each compacting state shall have and be limited
to one member. Each state shall determine the qualifications and the method by
which it selects a member and set forth the selection process in the enabling
provision of the legislation which enacts this Compact. In the absence of such
a provision, the member shall be appointed by the governor of such compacting
state. Any member may be removed or suspended from office as provided by the
law of the state from which he or she shall be appointed. Any vacancy occurring
in the Commission shall be filled in accordance with the laws of the compacting
state wherein the vacancy exists.
(2) Each member
shall be entitled to one vote and shall otherwise have an opportunity to
participate in the governance of the Commission in accordance with the bylaws.
(3) The
Commission shall, by a majority vote of the members, prescribe bylaws to govern
its conduct as may be necessary or appropriate to carry out the purposes and
exercise the powers of the Compact including:
(A) establishing
the fiscal year of the Commission;
(B) providing
reasonable procedures for holding meetings of the Commission, the Executive
Committee, and the Operations Committee;
(C) providing
reasonable standards and procedures for the establishment and meetings of
committees, and for governing any general or specific delegation of any
authority or function of the Commission;
(D) providing
reasonable procedures for calling and conducting meetings of the Commission
that consist of a majority of Commission members, ensuring reasonable advance
notice of each such meeting and providing for the right of citizens to attend
each such meeting with enumerated exceptions designed to protect the public's
interest, the privacy of individuals, and insurers' and surplus lines
licensees' proprietary information, including trade secrets. The Commission may
meet in camera only after a majority of the entire membership votes to close a
meeting in toto or in part. As soon as practicable, the Commission must make
public:
(i) a copy of
the vote to close the meeting revealing the vote of each member with no proxy
votes allowed; and
(ii) votes taken
during such meeting;
(E) establishing
the titles, duties, and authority and reasonable procedures for the election of
the officers of the Commission;
(F) providing
reasonable standards and procedures for the establishment of the personnel
policies and programs of the Commission. Notwithstanding any civil service or
other similar laws of any compacting state, the bylaws shall exclusively govern
the personnel policies and programs of the Commission;
(G) adopting a
code of ethics to address permissible and prohibited activities of Commission
members and employees;
(H) providing a
mechanism for winding up the operations of the Commission and the equitable
disposition of any surplus funds that may exist after the termination of the
Compact after the payment and reserving of all of its debts and obligations.
(4) The Commission
shall publish its bylaws in a convenient form and file a copy thereof and a
copy of any amendment thereto, with the appropriate agency or officer in each
of the compacting states.
(b)(1) Executive
committee, personnel, and chairperson. An Executive Committee of the Commission
shall be established. All actions of the Executive Committee, including
compliance and enforcement are subject to the review and ratification of the
Commission as provided in the bylaws.
(2) The
Executive Committee shall have no more than 15 representatives, or one for each
state if there are less than 15 compacting states, who shall serve for a term
and be established in accordance with the bylaws.
(3) The
Executive Committee shall have such authority and duties as may be set forth in
the bylaws, including:
(A) managing the
affairs of the Commission in a manner consistent with the bylaws and purposes
of the Commission;
(B) establishing
and overseeing an organizational structure within, and appropriate procedures
for the Commission to provide for the creation of rules and operating
procedures;
(C) overseeing
the offices of the Commission; and
(D) planning,
implementing, and coordinating communications and activities with other state,
federal, and local government organizations in order to advance the goals of
the Commission.
(4) The
Commission shall annually elect officers from the Executive Committee, with
each having such authority and duties, as may be specified in the bylaws.
(5) The
Executive Committee may, subject to the approval of the Commission, appoint or
retain an Executive Director for such period, upon such terms and conditions
and for such compensation as the Commission may deem appropriate. The Executive
Director shall serve as Secretary to the Commission, but shall not be a member
of the Commission. The Executive Director shall hire and supervise such other
persons as may be authorized by the Commission.
(c)(1)
Operations committee. An Operations Committee shall be established. All actions
of the Operations Committee are subject to the review and oversight of the
Commission and the Executive Committee and must be approved by the Commission.
The Executive Committee will accept the determinations and recommendations of
the Operations Committee unless good cause is shown why such determinations and
recommendations should not be approved. Any disputes as to whether good cause
exists to reject any determination or recommendation of the Operations
Committee shall be resolved by the majority vote of the Commission.
(2) The
Operations Committee shall have no more than 15 representatives or one for each
state if there are less than 15 compacting states, who shall serve for a term
and shall be established as set forth in the bylaws.
(3) The
Operations Committee shall have responsibility for:
(A) evaluating
technology requirements for the clearinghouse, assessing existing systems used
by state regulatory agencies and state stamping offices to maximize the
efficiency and successful integration of the clearinghouse technology systems
with state and state stamping office technology platforms and to minimize costs
to the states, state stamping offices and the clearinghouse;
(B) making
recommendations to the Executive Committee based on its analysis and
determination of the clearinghouse technology requirements and compatibility
with existing state and state stamping office systems;
(C) evaluating
the most suitable proposals for adoption as mandatory rules, assessing such
proposals for ease of integration by states, and likelihood of successful
implementation and to report to the Executive Committee its determinations and
recommendations; and
(D) such other
duties and responsibilities as are delegated to it by the bylaws, the Executive
Committee, or the Commission.
(4) All
representatives of the Operations Committee shall be individuals who have
extensive experience or employment in the surplus lines insurance business,
including executives and attorneys employed by surplus line insurers, surplus
line licensees, law firms, state insurance departments, or state stamping
offices. Operations committee representatives from compacting states which use
the services of a state stamping office must appoint the chief operating
officer or a senior manager of the state stamping office to the Operations
Committee.
(d)(1)
Legislative and Advisory Committees. A Legislative Committee comprised of state
legislators or their designees shall be established to monitor the operations
of and make recommendations to the Commission, including the Executive Committee.
The manner of selection and term of any Legislative Committee member shall be
as set forth in the bylaws. Prior to the adoption by the Commission of any
uniform standard, revision to the bylaws, annual budget, or other significant
matter as may be provided in the bylaws, the Executive Committee shall consult
with and report to the Legislative Committee.
(2) The
Commission may establish additional Advisory Committees as its bylaws may
provide for the carrying out of its functions.
(e) Corporate
records of the Commission. The Commission shall maintain its corporate books
and records in accordance with the bylaws.
(f)(1) Qualified
immunity, defense, and indemnification. The members, officers, Executive
Director, employees, and representatives of the Commission, the Executive
Committee, and any other committee of the Commission shall be immune from suit
and liability, either personally or in their official capacity, for any claim
for damage to or loss of property or personal injury or other civil liability caused
by or arising out of any actual or alleged act, error, or omission that
occurred, or that the person against whom the claim is made had a reasonable
basis for believing occurred, within the scope of Commission employment,
duties, or responsibilities. Nothing in this subdivision shall be construed to
protect any such person from suit or liability for any damage, loss, injury, or
liability caused by the intentional or willful or wanton misconduct of that
person.
(2) The
Commission shall defend any member, officer, Executive Director, employee, or
representative of the Commission, the Executive Committee, or any other
committee of the Commission in any civil action seeking to impose liability
arising out of any actual or alleged act, error, or omission that occurred
within the scope of Commission employment, duties, or responsibilities, or that
the person against whom the claim is made had a reasonable basis for believing
occurred within the scope of Commission employment, duties, or
responsibilities, provided that the actual or alleged act error or omission did
not result from that person's intentional or willful or wanton misconduct.
Nothing herein shall be construed to prohibit that person from retaining his or
her own counsel.
(3) The
Commission shall indemnify and hold harmless any member, officer, Executive
Director, employee, or representative of the Commission, Executive Committee,
or any other committee of the Commission for the amount of any settlement or
judgment obtained against that person arising out of any actual or alleged act,
error, or omission that occurred within the scope of Commission employment,
duties, or responsibilities, or that such person had a reasonable basis for
believing occurred within the scope of Commission employment, duties, or
responsibilities, provided that the actual or alleged act, error, or omission
did not result from the intentional or willful or wanton misconduct of that
person. (Added 2011, No. 49, § 1, eff. May 26, 2011.)
