§3687. Confidential treatment

Link to law: http://legislature.vermont.gov/statutes/section/08/101/03687
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

101

:
INSURANCE COMPANIES GENERALLY






Subchapter

013
:
HOLDING COMPANIES AND SUBSIDIARIES










 

§

3687. Confidential treatment

(a) Documents,

materials, or other information in the possession or control of the Department

that are obtained by or disclosed to the Commissioner or any other person in

the course of an examination or investigation made pursuant to section 3686 of

this title and all information reported pursuant to subdivisions 3683(b)(12)

and (13), section 3684, and section 3685 of this title shall be given

confidential treatment, shall not be subject to subpoena, shall not be subject to

public inspection and copying under the Public Records Act, shall not be

subject to discovery or admissible in evidence in any private civil action, and

shall not be made public by the Commissioner or any other person. However, the

Commissioner 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 official duties. The Commissioner shall not

otherwise make the documents, materials, or other information public without

the prior written consent of the insurer to which it pertains unless the

Commissioner, after giving the insurer and its affiliates who would be affected

thereby notice and opportunity to be heard, determines that the interests of

policyholders, shareholders, or the public will be served by the publication

thereof, in which event he or she may publish all or any part thereof in such

manner as he or she may deem appropriate.

(b) Neither the

Commissioner nor any person who received documents, materials, or other

information while acting under the authority of the Commissioner or with whom

such documents, materials, or other information are shared pursuant to this

chapter shall be permitted or required to testify in any private civil action

concerning any confidential documents, materials, or information subject to

subsection (a) of this section.

(c) In order to

assist in the performance of the Commissioner's duties, the Commissioner:

(1) may share

documents, materials, or other information, including the confidential and

privileged documents, materials, or information subject to subsection (a) of

this section, 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, including members of any supervisory

college described in section 3695 of this title, provided that the recipient

agrees in writing to maintain the confidentiality and privileged status of the

document, material, or other information and has verified in writing the legal

authority to maintain confidentiality;

(2)

notwithstanding subdivision (1) of this subsection, may only share confidential

and privileged documents, material, or information reported pursuant to

subsection 3684(m) of this chapter with commissioners of states having statutes

or regulations substantially similar to subsection (a) of this section and who

have agreed in writing not to disclose such information;

(3) may 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

(4) shall enter

into written agreements with the NAIC governing sharing and use of information

provided under this chapter consistent with this subsection that shall:

(A) specify

procedures and protocols regarding the confidentiality and security of information

shared with the NAIC and its affiliates and subsidiaries pursuant to this

section, including procedures and protocols for sharing by the NAIC with other

state, federal, or international regulators;

(B) specify that

ownership of information shared with the NAIC and its affiliates and

subsidiaries pursuant to this section remains with the Commissioner and the

NAIC's use of the information is subject to the direction of the Commissioner;

(C) require

prompt notice be given to an insurer whose confidential information in the

possession of the NAIC under this section is subject to a request or subpoena

to the NAIC for disclosure or production; and

(D) require the

NAIC and its affiliates and subsidiaries to consent to intervention by an

insurer in any judicial or administrative action in which the NAIC and its

affiliates and subsidiaries may be required to disclose confidential

information about the insurer shared with the NAIC and its affiliates and

subsidiaries pursuant to this section.

(d) The sharing of

information by the Commissioner pursuant to this section shall not constitute a

delegation of regulatory authority or rulemaking, and the Commissioner is

solely responsible for the administration, execution, and enforcement of the

provisions of this section.

(e) 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 as authorized in

subsection (c) of this section.

(f) Documents,

materials, or other information in the possession or control of the NAIC

pursuant to this section shall be confidential by law and privileged, shall not

be subject to public inspection and copying under the Public Records Act, shall

not be subject to subpoena, shall not be subject to discovery or admissible in

evidence in any private civil action, and shall not be made public by the

Commissioner or any other person. (Added 1971, No. 72, § 2; amended 2013, No.

29, § 33, eff. May 13, 2013.)
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