The immediate past president of National Conference of Insurance Legislators has recommended shielding insurers’ market conduct statement responses from subpoenas as well as from state public records laws.
Sen. James Seward, R-Otsego, N.Y., includes those confidentiality provisions and others in a proposed Market Conduct Annual Statement Model Act.
The draft is set to be considered by NCOIL’s State-Federal Relations Committee March 5, 2010.
The National Association of Insurance Commissioners, Kansas City, Mo., also has been working on a market conduct statement model.
The Seward version states that the purpose of the model developed by NCOIL, Troy, N.Y., would be to enable an insurance commissioner to ccollect and analyze market conduct annual statement data.
“The procedures set forth under this statute shall be the exclusive method for collecting, analyzing and sharing MCAS information,” according to the draft text.
The model calls for the National Association of Insurance Commissioners, Kansas City, Mo., to appoint statistical agents to collect market conduct data, and for any insurer that could use more than one statistical agent to choose one statistical agent.
The statistical agent would have to promise to protect the data collected, and “the MCAS information submitted by an insurer to the Commissioner or the Commissioner’s designee in accordance with this Act, as well as the work papers and other information received from another governmental entity or the NAIC and the review and analysis of that data, is confidential and privileged,” according to the draft text. “It shall be afforded no less protection than materials provided under the Commissioner’s examination and investigation authority…”
The MCAS information “shall not be subject to subpoena or to discovery; shall not be admissible in evidence in a private civil action; and shall be exempt from any applicable freedom of information law, public records law, public records disclosure law, or other similar statute,” according to the draft text.