[§431:2D-104]  Market analysis procedures. 
(a)  The commissioner shall gather information from data currently available to
the insurance division, as well as surveys and required reporting requirements,
information collected by the National Association of Insurance Commissioners
and a variety of other sources in both the public and private sectors,
information from within and outside the insurance industry from objective
sources, information from websites for insurers, agents, and other
organizations, and information from other sources; provided that prior to use,
the sources are published at least annually in a bulletin or circular.



The information shall be analyzed to develop a
baseline understanding of the marketplace and to identify for further review
insurers or practices that deviate significantly from the norm or that may pose
a potential risk to the insurance consumer.  The commissioner shall use
procedures that are substantially similar to the National Association of
Insurance Commissioners' guidelines on market analysis as one resource in
performing this analysis.



The commissioner shall use the following
policies and procedures in performing the analysis required under this section:



(1)  Identify key lines of business for systematic
review; and



(2)  Identify companies for further analysis based on
available information.



(b)  If the analysis compels the commissioner
to inquire further into a particular insurer or practice, the following
continuum of market conduct actions may be considered prior to conducting a
targeted, on-site market conduct examination.  The action selected shall be
made known to the insurer in writing.  These actions may include but are not
limited to:



(1)  Correspondence with the insurer;



(2)  Insurer interviews;



(3)  Information gathering;



(4)  Policy and procedure reviews;



(5)  Interrogatories; and



(6)  Review of insurer self-evaluation and compliance
programs, including membership in an organization such as a best-practice
organization that has as its central mission the promotion of high ethical
standards in the marketplace.



(c)  The commissioner shall select a market
conduct action that is cost-effective for the insurance division and the
insurer, while still protecting the insurance consumer.



(d)  The commissioner shall take those steps
reasonably necessary to:



(1)  Eliminate requests for information that
duplicate:



(A)  Information provided as part of an
insurer's annual financial statement, the annual market conduct statement of
the National Association of Insurance Commissioners, or other required
schedules, surveys, or reports that are regularly submitted to the
commissioner; or



(B)  Data requests made by other states if that
information is available to the commissioner, unless the information is
state-specific; and



(2)  Coordinate market conduct actions and findings
with other states. [L 2007, c 227, pt of §1]