(a)

1. (1) The State Insurance Department shall timely issue rules when expressly mandated to do so by the General Assembly to implement legislation.

2. (2)

   1. (A) However, if the authority granted to the Insurance Commissioner under the law to issue rules is permissive or discretionary in nature, the commissioner is not automatically required to implement such legislation by rule for such laws to apply.
   2. (B) In such cases, the law and requirements under the provisions of the law itself shall apply and go into effect upon subject licensees or organizations on the effective date of the law without the need for the department to preliminarily issue a promulgated rule.

(b) For laws providing discretionary rulemaking powers to the commissioner to implement enacted legislation under his or her enforcement purview, the commissioner has discretion to issue or not issue a rule, and such discretion shall be guided by factors that consider whether:

1. (1) The law itself is already sufficiently clear and comprehensive enough in design, requirements, and implementation that there is no substantial need for an implementational rule at this time;
2. (2) There is a significant ambiguity, conflict, or vagueness issue of a significant magnitude pertaining to the law, or section thereof, as raised from department complaints or department enforcement concerns, that necessitates an explanation or interpretation of an issue under a rule; or
3. (3) A rule is needed for promulgation to implement needed updates to conform with subsequently enacted legislation, National Association of Insurance Commissioners (NAIC) models, National Conference of Insurance Legislators (NCOIL) models, or the need to adjust to modern practices of the affected industry.