§ 58‑2‑240. Market conduct analysis, financial analysis, and related information not publicrecord.
(a) NotwithstandingChapter 132 of the General Statutes, all market analysis, documents arisingfrom market conduct action, and financial statement analysis work papers areconfidential, are not open for public inspection, and are not discoverable oradmissible in evidence in a civil action brought by a party other than theDepartment against a person regulated by the Department, its directors,officers, or employees, unless the court finds that the interests of justicerequire that the documents be discoverable or admissible in evidence or exceptas provided in G.S. 58‑2‑128 and G.S. 58‑2‑132(g)through (j). The Commissioner, however, may use market analysis, documentsarising from market conduct action, and financial statement analysis workpapers in the furtherance of any regulatory or legal action brought as part ofthe Commissioner's official duties.
(b) As used in thisArticle:
(1) "Financialstatement analysis" means a set of systems and procedures designed toprovide relevant information derived from basic sources of data for the purposeof evaluating the risk of an insurer's insolvency.
(1a) "Financialstatement analysis work papers" means:
a. Documents, programs,findings, and other information produced by persons employed or contracted bythe Commissioner during and as part of the financial statement analysis of aninsurer.
b. Documents, programs,findings, and other information disclosed by an entity to persons employed orcontracted by the Commissioner in response to an inquiry from the Commissionerduring and as part of the financial statement analysis of the insurer.
c. Documents, programs,findings, and other information obtained, during and as part of the financialstatement analysis of an insurer, by persons employed or contracted by theCommissioner from or through any regulatory or law enforcement agency or theNAIC when the receipt of that information is conditioned upon the Commissionermaintaining the confidentiality of the information shared with theCommissioner.
"Financialstatement analysis work papers" includes financial analysis programs andprocedures; correspondence between persons employed or contracted by theCommissioner and the insurer during and as part of the financial statementanalysis; memos, e‑mails, and other correspondence, in any form, producedby persons employed or contracted by the Commissioner detailing findings orrecommendations of the financial statement analysis; and the Actuarial OpinionSummary filed by an insurer as required by and in accordance with NAIC AnnualStatement Instructions. "Financial statement analysis work papers"does not mean statements filed with the Commissioner under G.S. 58‑2‑165,CPA audit reports filed with the Commissioner under G.S. 58‑2‑205,or documents that constitute an initial filing and any supplemental filingnecessary to complete a filing made by an insurer, independent of financialstatement analysis.
(1b) "Marketanalysis" means work product arising from a process whereby personsemployed or contracted by the Commissioner collect and analyze information fromfiled schedules, surveys, required reports other than periodic reportsspecifically required by statute, and other sources in order to develop abaseline understanding of the marketplace and to identify patterns or practicesof insurers that deviate significantly from the norm or that may pose apotential risk to the insurance consumer.
(2) "Market conductaction" means any of the full range of activities, other than anexamination that the Commissioner may initiate to assess and address the marketpractices of insurers, beginning with market analysis. Additional marketconduct actions, including those taken subsequent to market analysis as aresult of the findings of or indications from market analysis include:correspondence with an insurer; insurer interviews; information gathering;policy and procedure reviews; interrogatories; and review of insurer self‑evaluationand compliance programs, including membership in a best‑practiceorganization. The Commissioner's activities to resolve an individual consumercomplaint or other report of a specific instance of misconduct are not marketconduct actions for purposes of this section.
(c) For purposes ofsubdivisions (b)(1) and (b)(1a) of this section only, the term"insurer" has the same meaning as in G.S. 58‑30‑10(14)and includes a:
(1) Reciprocal that isor should be licensed under Article 15 of this Chapter.
(2) Local government riskpool that chooses to operate under Article 23 of this Chapter.
(3) Fraternal benefitsociety that is or should be licensed under Article 24 of this Chapter.
(4) Self‑insurerthat is or should be licensed under Article 5 of Chapter 97 of the General Statutes.
(d) Nothing in thissection limits public access to financial or actuarial information orcalculations filed by an insurer or other entity for rating purposes, includingrate filings, deviation filings, and loss cost filings. (2005‑206, s. 1; 2006‑105,s. 2.4; 2007‑127, s. 10.)
§ 58‑2‑240. Market conduct analysis, financial analysis, and related information not publicrecord.
(a) NotwithstandingChapter 132 of the General Statutes, all market analysis, documents arisingfrom market conduct action, and financial statement analysis work papers areconfidential, are not open for public inspection, and are not discoverable oradmissible in evidence in a civil action brought by a party other than theDepartment against a person regulated by the Department, its directors,officers, or employees, unless the court finds that the interests of justicerequire that the documents be discoverable or admissible in evidence or exceptas provided in G.S. 58‑2‑128 and G.S. 58‑2‑132(g)through (j). The Commissioner, however, may use market analysis, documentsarising from market conduct action, and financial statement analysis workpapers in the furtherance of any regulatory or legal action brought as part ofthe Commissioner's official duties.
(b) As used in thisArticle:
(1) "Financialstatement analysis" means a set of systems and procedures designed toprovide relevant information derived from basic sources of data for the purposeof evaluating the risk of an insurer's insolvency.
(1a) "Financialstatement analysis work papers" means:
a. Documents, programs,findings, and other information produced by persons employed or contracted bythe Commissioner during and as part of the financial statement analysis of aninsurer.
b. Documents, programs,findings, and other information disclosed by an entity to persons employed orcontracted by the Commissioner in response to an inquiry from the Commissionerduring and as part of the financial statement analysis of the insurer.
c. Documents, programs,findings, and other information obtained, during and as part of the financialstatement analysis of an insurer, by persons employed or contracted by theCommissioner from or through any regulatory or law enforcement agency or theNAIC when the receipt of that information is conditioned upon the Commissionermaintaining the confidentiality of the information shared with theCommissioner.
"Financialstatement analysis work papers" includes financial analysis programs andprocedures; correspondence between persons employed or contracted by theCommissioner and the insurer during and as part of the financial statementanalysis; memos, e‑mails, and other correspondence, in any form, producedby persons employed or contracted by the Commissioner detailing findings orrecommendations of the financial statement analysis; and the Actuarial OpinionSummary filed by an insurer as required by and in accordance with NAIC AnnualStatement Instructions. "Financial statement analysis work papers"does not mean statements filed with the Commissioner under G.S. 58‑2‑165,CPA audit reports filed with the Commissioner under G.S. 58‑2‑205,or documents that constitute an initial filing and any supplemental filingnecessary to complete a filing made by an insurer, independent of financialstatement analysis.
(1b) "Marketanalysis" means work product arising from a process whereby personsemployed or contracted by the Commissioner collect and analyze information fromfiled schedules, surveys, required reports other than periodic reportsspecifically required by statute, and other sources in order to develop abaseline understanding of the marketplace and to identify patterns or practicesof insurers that deviate significantly from the norm or that may pose apotential risk to the insurance consumer.
(2) "Market conductaction" means any of the full range of activities, other than anexamination that the Commissioner may initiate to assess and address the marketpractices of insurers, beginning with market analysis. Additional marketconduct actions, including those taken subsequent to market analysis as aresult of the findings of or indications from market analysis include:correspondence with an insurer; insurer interviews; information gathering;policy and procedure reviews; interrogatories; and review of insurer self‑evaluationand compliance programs, including membership in a best‑practiceorganization. The Commissioner's activities to resolve an individual consumercomplaint or other report of a specific instance of misconduct are not marketconduct actions for purposes of this section.
(c) For purposes ofsubdivisions (b)(1) and (b)(1a) of this section only, the term"insurer" has the same meaning as in G.S. 58‑30‑10(14)and includes a:
(1) Reciprocal that isor should be licensed under Article 15 of this Chapter.
(2) Local government riskpool that chooses to operate under Article 23 of this Chapter.
(3) Fraternal benefitsociety that is or should be licensed under Article 24 of this Chapter.
(4) Self‑insurerthat is or should be licensed under Article 5 of Chapter 97 of the General Statutes.
(d) Nothing in thissection limits public access to financial or actuarial information orcalculations filed by an insurer or other entity for rating purposes, includingrate filings, deviation filings, and loss cost filings. (2005‑206, s. 1; 2006‑105,s. 2.4; 2007‑127, s. 10.)
§ 58‑2‑240. Market conduct analysis, financial analysis, and related information not publicrecord.
(a) NotwithstandingChapter 132 of the General Statutes, all market analysis, documents arisingfrom market conduct action, and financial statement analysis work papers areconfidential, are not open for public inspection, and are not discoverable oradmissible in evidence in a civil action brought by a party other than theDepartment against a person regulated by the Department, its directors,officers, or employees, unless the court finds that the interests of justicerequire that the documents be discoverable or admissible in evidence or exceptas provided in G.S. 58‑2‑128 and G.S. 58‑2‑132(g)through (j). The Commissioner, however, may use market analysis, documentsarising from market conduct action, and financial statement analysis workpapers in the furtherance of any regulatory or legal action brought as part ofthe Commissioner's official duties.
(b) As used in thisArticle:
(1) "Financialstatement analysis" means a set of systems and procedures designed toprovide relevant information derived from basic sources of data for the purposeof evaluating the risk of an insurer's insolvency.
(1a) "Financialstatement analysis work papers" means:
a. Documents, programs,findings, and other information produced by persons employed or contracted bythe Commissioner during and as part of the financial statement analysis of aninsurer.
b. Documents, programs,findings, and other information disclosed by an entity to persons employed orcontracted by the Commissioner in response to an inquiry from the Commissionerduring and as part of the financial statement analysis of the insurer.
c. Documents, programs,findings, and other information obtained, during and as part of the financialstatement analysis of an insurer, by persons employed or contracted by theCommissioner from or through any regulatory or law enforcement agency or theNAIC when the receipt of that information is conditioned upon the Commissionermaintaining the confidentiality of the information shared with theCommissioner.
"Financialstatement analysis work papers" includes financial analysis programs andprocedures; correspondence between persons employed or contracted by theCommissioner and the insurer during and as part of the financial statementanalysis; memos, e‑mails, and other correspondence, in any form, producedby persons employed or contracted by the Commissioner detailing findings orrecommendations of the financial statement analysis; and the Actuarial OpinionSummary filed by an insurer as required by and in accordance with NAIC AnnualStatement Instructions. "Financial statement analysis work papers"does not mean statements filed with the Commissioner under G.S. 58‑2‑165,CPA audit reports filed with the Commissioner under G.S. 58‑2‑205,or documents that constitute an initial filing and any supplemental filingnecessary to complete a filing made by an insurer, independent of financialstatement analysis.
(1b) "Marketanalysis" means work product arising from a process whereby personsemployed or contracted by the Commissioner collect and analyze information fromfiled schedules, surveys, required reports other than periodic reportsspecifically required by statute, and other sources in order to develop abaseline understanding of the marketplace and to identify patterns or practicesof insurers that deviate significantly from the norm or that may pose apotential risk to the insurance consumer.
(2) "Market conductaction" means any of the full range of activities, other than anexamination that the Commissioner may initiate to assess and address the marketpractices of insurers, beginning with market analysis. Additional marketconduct actions, including those taken subsequent to market analysis as aresult of the findings of or indications from market analysis include:correspondence with an insurer; insurer interviews; information gathering;policy and procedure reviews; interrogatories; and review of insurer self‑evaluationand compliance programs, including membership in a best‑practiceorganization. The Commissioner's activities to resolve an individual consumercomplaint or other report of a specific instance of misconduct are not marketconduct actions for purposes of this section.
(c) For purposes ofsubdivisions (b)(1) and (b)(1a) of this section only, the term"insurer" has the same meaning as in G.S. 58‑30‑10(14)and includes a:
(1) Reciprocal that isor should be licensed under Article 15 of this Chapter.
(2) Local government riskpool that chooses to operate under Article 23 of this Chapter.
(3) Fraternal benefitsociety that is or should be licensed under Article 24 of this Chapter.
(4) Self‑insurerthat is or should be licensed under Article 5 of Chapter 97 of the General Statutes.
(d) Nothing in thissection limits public access to financial or actuarial information orcalculations filed by an insurer or other entity for rating purposes, includingrate filings, deviation filings, and loss cost filings. (2005‑206, s. 1; 2006‑105,s. 2.4; 2007‑127, s. 10.)
