A new draft of the market conduct model law has been released by the National Association of Insurance Commissioners, reflecting suggestions made by regulators in an ongoing dialogue over what a model should include.
The draft is an adaptation of the Market Conduct Surveillance Model Law adopted by the National Conference of Insurance Legislators, Albany, N.Y., in February.
In at least one of the changes, a commissioners authority to make decisions on market conduct matters was reasserted.
The change relates to language outlining targeted on-site market conduct exams. The new language states that when a commissioner determines that available market conduct actions are not appropriate, the commissioner can initiate an on-site market conduct exam in accordance with NAIC market conduct uniform examination procedures and the Market Conduct Examiners Handbook.
The new draft also addresses concerns raised over the treatment of confidentiality requirements. Initially, the language stated that all information gathered in relation to a market conduct action or market analysis would be confidential and privileged and not subject to a subpoena, and “shall not be subject to discovery or admissible in evidence in any private civil action.”
The change clarifies that the provision would apply to documents except “as otherwise provided by law or otherwise publicly available.”
Reproduced from National Underwriter Edition, April 2, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.