[§431E-6]  Reporting requirements andprivacy.  (a)  For any policy settled within five years of policy issuance,each provider shall file with the commissioner on or before March 1 of eachyear an annual statement containing the information as the commissioner mayprescribe by rule.  In addition to any other requirements, the annual statementshall:

(1)  Specify the total number, aggregate face amount,and life settlement proceeds of policies settled during the immediatelypreceding calendar year, together with a breakdown of the information by policyissue year; and

(2)  Include the names of the insurance companieswhose policies have been settled and the brokers that have settled saidpolicies.

The information shall be limited to only thosetransactions where the insured is a resident of this State and shall notinclude individual transaction data regarding the business of life settlementsor information that there is a reasonable basis to believe could be used toidentify the owner or the insured.

Every provider that wilfully fails to file anannual statement as required in this section, or wilfully fails to reply withinthirty days to a written inquiry by the commissioner in connection therewith,shall, in addition to other penalties provided by this chapter, be subject,upon due notice and opportunity to be heard, to a penalty of up to $250 per dayof delay, not to exceed $25,000 in the aggregate, for each such failure.

(b)  Except as otherwiseallowed or required by law, a provider, broker, insurance company, insuranceproducer, information bureau, rating agency or company, or any other personwith actual knowledge of an insured's identity, shall not disclose the identityof an insured or information that there is a reasonable basis to believe couldbe used to identify the insured or the insured's financial or medicalinformation to any other person unless the disclosure:

(1)  Is necessary to effect a life settlement contractbetween the owner and a provider, and the owner and insured have provided priorwritten consent to the disclosure;

(2)  Is necessary to effectuate the sale of lifesettlement contracts, or interests therein, as investments, so long as the saleis conducted in accordance with applicable state and federal securities law andthe owner and the insured have both provided prior written consent to thedisclosure;

(3)  Is provided in response to an investigation orexamination by the commissioner pursuant to the requirements of section 431E-17or any other governmental officer or agency;

(4)  Is a term or condition to the transfer of apolicy by one provider to another provider, in which case the receivingprovider shall be required to comply with the confidentiality requirements ofthis section;

(5)  Is necessary to allow the provider or broker ortheir authorized representatives to make contacts for the purpose ofdetermining health status.  For the purposes of this paragraph, the term "authorizedrepresentative" shall not include any person who has or may have anyfinancial interest in the life settlement contract other than a provider,licensed broker, financing entity, related provider trust, or special purposeentity.  A provider or broker shall require its authorized representative toagree in writing to adhere to the privacy provisions of this section; or

(6)  Is required to purchase stop loss coverage.

(c)  Non-public personal information solicitedor obtained in connection with a proposed or actual life settlement contractshall be subject to the provisions applicable to financial institutions underthe federal Gramm Leach Bliley Act, P.L. 106-102 (1999), and all otherapplicable state and federal laws relating to confidentiality of non-publicpersonal information. [L 2008, c 177, pt of §1]