§ 23-63-1508 — Confidentiality and prohibition on announcements - Prohibition on use in ratemaking

Arkansas § 23-63-1508

• Jurisdiction: Arkansas
• Title: 23

Text

(a) An RBC report, to the extent the information is not required to be stated in a publicly available annual statement schedule, and RBC plans, including the results or report of an examination or analysis of a health organization performed under this subchapter and a corrective order issued by the Insurance Commissioner under examination or analysis, with respect to a domestic health organization or foreign health organization that are filed with the commissioner constitute information that may be damaging to the health organization if made available to its competitors and shall be kept confidential by the commissioner. This information shall not be made public or be subject to subpoena other than by the commissioner and then only for the purpose of enforcement actions taken by the commissioner under this subchapter or any other insurance laws of this state. (b) (1) It is the judgment of the General Assembly that the comparison of a health organization's total adjusted capital to any of its RBC levels is a regulatory tool that may indicate the need for corrective action with respect to the health organization and is not intended as a means to rank health organizations generally. The making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over a radio or television station, or in any other way, of an advertisement, announcement, or statement containing an assertion, representation, or statement with regard to the RBC levels of a health organization, or of a component derived in the calculation, by a health organization, agent, broker, or other person engaged in any way in the insurance business would be misleading and is prohibited. (2) However, if a materially false statement with respect to the comparison regarding a health organization's total adjusted capital to its RBC levels, or any of them, or an inappropriate comparison of any other amount to the health organization's RBC levels is published in a written publication and the health organization is able to demonstrate to the commissioner with substantial proof the falsity or inappropriateness of the statement, the health organization may publish an announcement in a written publication if the sole purpose of the announcement is to rebut the materially false statement. (c) It is the further judgment of the General Assembly that the RBC instructions, RBC reports, adjusted RBC reports, RBC plans, and revised RBC plans are intended solely for use by the commissioner in monitoring the solvency of health organizations and the need for possible corrective action with respect to health organizations and shall not be used by the commissioner for ratemaking nor considered or introduced as evidence in a rate proceeding nor used by the commissioner to calculate or derive any elements of an appropriate premium level or rate of return for any line of insurance that a health organization or an affiliate is authorized to write.

Legislative History

Acts 1999, No. 580, § 8; 2011, No. 760, § 5.