Confidentiality; prohibition on announcements, prohibition on use in ratemaking

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  • (a) Except information that is required to be set forth in a publicly available annual statement schedule or RBC Plans, all RBC Reports are confidential and privileged and are not subject to examination by the public, to a subpoena, to discovery or admissible as evidence in any private civil action. The privilege extends to any corrective order issued by the Commissioner pursuant to examination or analysis of any domestic insurer or foreign insurer and any results or report of any examination or analysis of an insurer in the possession or control of the Division of Banking of Insurance and Financial Regulation. 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.

  • (b) Neither the Commissioner nor any person who received documents, materials or other information while acting under the authority of the Commissioner is permitted or required to testify in any private civil action concerning any confidential documents, materials or information subject to subsection (a).

  • (c) In order to assist in the performance of the Commissioner’s duties, the Commissioner may:

    • (1) share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subsection (a), with other state, federal and international regulatory agencies, with the NAIC and its affiliates and subsidiaries, and with state, federal and international law enforcement authorities, if the recipient agrees to maintain the confidentiality and privileged status of the document, material or other information;

    • (2) receive documents, materials or information, including otherwise confidential and privileged documents, materials or information, from the NAIC and its affiliates and subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or 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

    • (3) enter into agreements governing sharing and use of information consistent with this subsection.

  • (d) No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information may occur as a result of disclosure to the Commissioner under this section or as a result of sharing as authorized in subsection (c).

  • (e) The Commissioner’s use of the comparison of an insurer’s Total Adjusted Capital to any of its RBC Levels is a regulatory tool that may indicate the need for possible corrective action with respect to the insurer, and is not intended as a means to rank insurers generally. Except as otherwise required under this chapter, the making, publishing, disseminating, circulating or placing before the public, or causing, directly or indirectly to be made, published, disseminated, circulated or placed before the public, in a newspaper, magazine or other publication, or in the form of a notice, circular, pamphlet, letter or poster, or over any radio or television station, or in any other way, an advertisement, announcement or statement containing an assertion, representation or statement with regard to the RBC Levels of any insurer, or of any component derived in the calculation, by any insurer, agent, broker or other person engaged in any manner in the insurance business would be misleading and is prohibited; but if any materially false statement regarding the comparison of an insurer’s Total Adjusted Capital to its RBC Levels or any of them or an inappropriate comparison of any other amount to the insurers” RBC Levels is published in any written publication and the insurer is able to demonstrate to the Commissioner with substantial proof the falsity of such statement, or the inappropriateness, as the case may be, then the insurer may publish an announcement in a written publication if the sole purpose of the announcement is to rebut the materially false statement.

  • (f) The RBC instructions, RBC reports, adjusted RBC reports, RBC plans and revised RBC plans are intended solely for use by the Commissioner in monitoring the solvency of insurers and the need for possible corrective action with respect to insurers and may not be used by the Commissioner for ratemaking or considered or introduced as evidence in any rate proceeding or used by the Commissioner to calculate or derive any elements of an appropriate premium level or rate of return for any line of insurance that an insurer or any affiliate may write.


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