Amendment #1 to H4324
Division of Insurance documents
Mr. Dempsey of Haverhill moves to amend the bill by striking out Section 6 and inserting in place thereof the following section:
by striking out Section 6 and inserting in place thereof the following section:
“SECTION 6. Section 206C of chapter 175 of the General Laws, as so appearing, is hereby amended by striking out subsection (v) and inserting thereof the following subsection:
(v)(1) Documents, materials or other information in the possession or control of the division of insurance that are obtained by or disclosed to the commissioner or any other person in the course of an examination or investigation made pursuant to subsection (u) and all information reported pursuant to this section shall be confidential by law and privileged, shall not be a public record under clause Twenty-sixth of section 7 of chapter 4, shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action. However, the commissioner may use the documents, materials or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner’s official duties.
The commissioner shall not otherwise make the documents, materials or other information public without the prior written consent of the insurer to which it pertains unless the commissioner, after giving the insurer and its affiliates who would be affected thereby notice and opportunity to be heard, determines that the interest of policyholders, shareholders or the public will be served by the publication thereof, in which event the commissioner may publish all or any part in such manner as may be deemed appropriate.
(2) Neither the commissioner nor any person who received documents, materials or other information while acting under the authority of the commissioner or with whom such documents, materials or other information are shared pursuant to this section shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subsection (v)(1).
(3) In order to assist in the performance of the commissioner’s duties, the commissioner:
(i) May share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subsection (v)(1) with other state, federal and international regulatory agencies, with the National Association of Insurance Commissioners and its affiliates and subsidiaries, and with state, federal, and international law enforcement authorities, provided that the recipient agrees in writing to maintain the confidentiality and privileged status of the document, material or other information, and has verified in writing the legal authority to maintain confidentiality.
(ii) May receive documents, materials or information, including otherwise confidential and privileged documents, materials or information from the National Association of Insurance Commissioners and its affiliates and subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential and privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and
(iii) Shall enter into written agreements with the National Association of Insurance Commissioners governing sharing and the use of information provided pursuant to this section that shall:
(a) specify procedures and protocols regarding the confidentiality and security of information shared with the National Association of Insurance Commissioners and its affiliates and subsidiaries pursuant to this section, including procedures and protocols for sharing by the National Association of Insurance Commissioners with other state, federal or international regulators;
(b) specify that ownership of information shared with the National Association of Insurance Commissioners and its affiliates and subsidiaries pursuant to this section remains with the commissioner and the National Association of Insurance Commissioners’ use of the information is subject to the direction of the commissioner;
(c) require prompt notice to be given to an insurer whose confidential information in the possession of the National Association of Insurance Commissioners pursuant to this section is subject to a request or subpoena to the National Association of Insurance Commissioners for disclosure or production; and
(d) require the National Association of Insurance Commissioners and its affiliates and subsidiaries to consent to intervention by an insurer in any judicial or administrative action in which the National Association of Insurance Commissioners and its affiliates and subsidiaries may be required to disclose confidential information about the insurer shared with the National Association of Insurance Commissioners and its affiliates and subsidiaries pursuant to this section.
(4) The sharing of information by the commissioner pursuant to this section shall not constitute a delegation of regulatory authority or rulemaking, and the commissioner is solely responsible for the administration, execution and enforcement of the provisions of this section.
(5) No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in subsection (3).
(6) Documents, materials or other information in the possession or control of the National Association of Insurance Commissioners pursuant to this section shall be confidential by law and privileged, shall not be a public record under clause Twenty-sixth of section 7 of chapter 4, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action.”