Understanding the Insurance Compact Rulemaking Process, Part 2
As we continue with the series of Weekly Tips on the Development of Uniform Standards, this week we will review what happens to the uniform standards once the Product Standards Committee finalizes its initial development of proposed or amended uniform standards.
At the completion of their review of the draft uniform standards, the Product Standards Committee will make a recommendation to the Management Committee that the proposed uniform standards be published for a 60-day comment period. If the Management Committee accepts this recommendation, the 60-day comment period will begin the formal rulemaking process for the uniform standards. It is during this time that the proposed uniform standards (whether new standards or revisions to existing standards) are posted to the Docket of Developing Standards on the Insurance Compact website. They will remain on the Docket until after they are adopted, at which point they are moved over to the Record of Adopted Standards.
When they are issued for a public comment period, all proposed uniform standards are distributed to interested parties, including all Commission members, the members of the Consumer and Industry Advisory Committees and the Legislative Committee, and all interested industry participants. This mailing is typically called a ?Notice of Publication and Comment.? Section 104 of the Rulemaking Rule requires that a short explanatory statement accompany the proposed uniform standards when published electronically for public comment. The explanatory statement provides the purpose of the proposed new or amended rule; the specific legal authority authorizing the new rule; where, when and how persons may present their views on the proposed rules; and where, when, and how persons may request a public hearing on the proposed rule. This same notice will be published on the Docket with the proposed uniform standards.
During this 60-day comment period, all interested parties should provide written comments regarding any specific issues with the proposal, with particular emphasis on practical application of the proposed standards in the marketplace. Because the Product Standards Committee?s work prior to the formal rulemaking process is very transparent and open to all interested parties, it is not uncommon that the vast majority of issues have been fully vetted prior to the recommendation to the Management Committee. As a result, comments received during the 60 day comment period, if any, are often more clarifying or technical in nature, offering suggested tweaks to language in the proposed uniform standard(s).
Next week we will review what happens to the uniform standards once the 60-day comment period ends. If you have any questions about this Weekly Tip, or the Insurance Compact, please contact the Insurance Compact Office at Comments@insurancecompact.org.