§431:9A-115 - Notification to commissioner of termination.

§431:9A-115 Notification to commissioner of
termination. (a) An insurer, authorized representative of the insurer, or
a producer that terminates the appointment, employment, contract, or other
insurance business relationship with a producer shall notify the commissioner
within thirty days following the effective date of the termination, using the
applicable format prescribed by the commissioner. An insurer, an authorized
representative of the insurer, or a producer who terminates a producer for one
of the reasons set forth in section 431:9A-112 or who has knowledge the
producer was found by a court, governmental body, or self-regulatory
organization to have engaged in any of the activities in section 431:9A-112,
shall use the particular format for that situation as prescribed by the
commissioner. Upon the written request of the commissioner, the insurer shall
provide additional information, documents, records, or other data pertaining to
the termination or activity of the producer.

(b) The insurer, an authorized representative
of the insurer, or a producer shall promptly notify the commissioner in a
format acceptable to the commissioner if, upon further review or investigation,
the insurer, an authorized representative of the insurer, or a producer discovers
additional information that would have been reportable to the commissioner in
accordance with subsection (a) had the insurer, authorized representative of
the insurer, or producer then known of its existence.

(1) Within fifteen days after making the notification
required by subsections (a) and (b), the insurer, authorized representative of
the insurer, or the producer shall mail a copy of the notification to the
producer at the producer's last known address. If the producer is terminated
for any of the causes listed in section 431:9A-112, the insurer, authorized
representative of the insurer, or the producer shall provide a copy of the notification
to the producer at the producer's last known address by certified mail, return
receipt requested, postage prepaid or by overnight delivery using a nationally
recognized carrier.

(2) Within thirty days after the producer has
received the original or additional notification, the producer may file written
comments concerning the substance of the notification with the commissioner.
The producer, by the same means, shall simultaneously send a copy of the
comments to the reporting insurer, authorized representative of the insurer, or
the producer, and the comments shall become a part of the commissioner's file
and shall accompany every copy of a report distributed or disclosed for any
reason about the producer as permitted under subsection (e).

(d) Immunity from civil liability for
notification applies as follows:

(1) In the absence of actual malice, an insurer, the
insurer's authorized representative, a producer, the commissioner, or an
organization of which the commissioner is a member and that compiles the
information and makes it available to other commissioners or regulatory or law
enforcement agencies shall not be subject to civil liability, and a civil cause
of action of any nature shall not arise against these entities or their
respective agents or employees, as a result of any statement or information
required by or provided pursuant to this section or any information relating to
any statement that may be requested in writing by the commissioner, from an
insurer or producer; or a statement by a terminating insurer or producer to an
insurer or producer limited solely and exclusively to whether a termination
under subsection (a) was reported to the commissioner, provided that the
propriety of any termination under subsection (a) is certified in writing by an
officer or authorized representative of the insurer or producer terminating the
relationship.

(2) In any action brought against a person that may
have immunity under paragraph (1) for making any statement required by this
section or for providing any information relating to any statement that may be
requested by the commissioner, the party bringing the action shall plead
specifically in any allegation that paragraph (1) does not apply because the
person making the statement or providing the information did so with actual
malice.

(3) Paragraphs (1) or (2) shall not abrogate or
modify any existing statutory or common law privileges or immunities.

(e) Confidentiality and privilege from
disclosure is established as follows:

(1) Any documents, materials, or other information in
the control or possession of the commissioner or any agent of the commissioner
that is furnished by an insurer, producer, or an employee or agent thereof who
is acting on behalf of the insurer or producer, or is obtained by the
commissioner, any agent of the commissioner, the insurance division, or any
employee of the insurance division, in an investigation pursuant to this
section shall be confidential and privileged, shall not be subject to chapter
92F, shall not be subject to subpoena, shall not be subject to discovery, and
shall not be admissible in evidence in any civil action; provided that the
commissioner or the commissioner's designee is authorized to use the documents,
materials, or other information in the furtherance of any regulatory or legal
action brought as a part of the commissioner's duties.

(2) Neither the commissioner nor any person who
received documents, materials, or other information while acting under the
authority of the commissioner shall be required to testify in any civil action
concerning any confidential documents, materials, or information subject to
paragraph (1).

(3) Any provision to the contrary notwithstanding,
the commissioner may:

(A) Share documents, materials, or other
information, including the confidential and privileged documents, materials, or
information subject to paragraph (1), with other state, federal, and
international regulatory and law enforcement agencies and authorities, the
National Association of Insurance Commissioners, and their affiliates or
subsidiaries; provided that the recipient agrees to maintain the
confidentiality and privileged status of the document, material, or other
information;

(B) Receive documents, materials, or
information, including otherwise confidential and privileged documents,
materials, or information, from the National Association of Insurance
Commissioners, its affiliates or subsidiaries and from state, federal, and
international regulatory and law enforcement agencies and authorities and shall
maintain as confidential or privileged any document, material, or information
received with the 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

(4) No waiver of any applicable privilege or claim of
confidentiality in the documents, materials, or information shall occur as a
result of disclosure to the commissioner under this section or as a result of
sharing, receiving, or using the information as authorized in paragraph (3).

(5) Nothing in this article shall prohibit the
commissioner from releasing final, adjudicated actions including terminations
that are open to public inspection pursuant to section 431:2-209 to a database
or other clearinghouse service maintained by the National Association of
Insurance Commissioners or its affiliates or subsidiaries.

(f) An insurer, the authorized representative
of the insurer, or a producer who fails to report as required under the
provisions of this section or who is found to have reported with actual malice
by a court of competent jurisdiction may, after notice and hearing, have its
license or certificate of authority suspended or revoked and may be fined in
accordance with article 2. [L 2001, c 216, pt of §2; am L 2002, c 155, §33]