(1) Termination
for cause. An insurer or authorized representative of the insurer that terminates
employment, a contract, or other insurance business relationship with a producer
shall notify the commissioner within thirty days following the effective date of the
termination, using a format prescribed by the commissioner, if the reason for
termination is one of the reasons set forth in this article and article 3 of this title, or
the insurer has knowledge the producer was found by a court, government body, or
self-regulatory organization authorized by law to have engaged in any of the
activities in this article and article 3 of this title. 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.
(2) Ongoing notification requirement. The insurer or the authorized
representative of the insurer shall promptly notify the commissioner, in a format
prescribed by the commissioner, if, upon further review or investigation, the insurer
discovers additional information that would have been reportable to the
commissioner pursuant to subsection (1) of this section had the insurer known of its
existence.
(3) Copy of notification to be provided to producer. A copy of the
notification pursuant to this subsection (3) shall be provided to the producer
pursuant to the following requirements:
(a) Within fifteen days after making the notification required by subsections
(1) and (2) of this section, the insurer shall mail a copy of the notification to the
producer at the producer's last-known address. If the producer is terminated for
cause as listed in section 10-2-801, the insurer shall provide a copy of the
notification to the producer at the producer's last-known address by certified mail,
return receipt requested and postage prepaid, or by overnight delivery using a
nationally recognized carrier.
(b) 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 shall, by the
same means, simultaneously send a copy of the comments to the reporting insurer,
and the comments shall become a part of the commissioner's file and accompany
every copy of a report distributed or disclosed for any reason about the producer as
permitted under subsection (5) of this section.
(4) Immunities. (a) In the absence of wilful and wanton behavior, an insurer,
the authorized representative of the insurer, 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 for cause under this paragraph (a)
was reported to the commissioner, if the propriety of any termination for cause
under subsection (1) of this section is certified in writing by an officer or authorized
representative of the insurer or producer terminating the relationship.
(b) Paragraph (a) of this subsection (4) shall not abrogate or modify any
existing statutory or common law privileges or immunities.
(5) Confidentiality. (a) (I) Except as provided in paragraph (e) of this
subsection (5), any documents, materials, or other information in the control or
possession of the division of insurance that is furnished by an insurer, producer, or
employee or agent thereof acting on behalf of the insurer or producer, or obtained
by the commissioner in an investigation pursuant to this section, shall not be
subject to article 72 of title 24, C.R.S.
(II) 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 duties.
(b) 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 private civil action concerning any confidential
documents, materials, or information subject to paragraph (a) of this subsection (5).
(c) In order to assist in the performance of the commissioner's duties under
this article, the commissioner, if the recipient agrees to maintain the confidentiality
and privileged status of the document, material, or other information, and has the
authority to do so, may:
(I) Share documents, materials, or other information, including the
documents, materials, or information subject to paragraph (a) of this subsection (5),
with any of the following:
(A) Other state, federal, and international regulatory agencies;
(B) The national association of insurance commissioners or its affiliates or
subsidiaries; and
(C) State, federal, and international law enforcement authorities.
(II) 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 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 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
(III) Enter into agreements governing sharing and use of information
consistent with this subsection (5).
(d) 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 paragraph
(c) of this subsection (5).
(e) Nothing in this article shall preclude the commissioner or the
commissioner's designee from releasing final disciplinary actions or closed files,
including those portions of the record pertaining to for cause terminations that
shall be open to public inspection pursuant to article 72 of title 24, C.R.S., and to a
database or other clearinghouse service maintained by the national association of
insurance commissioners or its affiliates or subsidiaries.
(f) Nothing in this article shall preclude the commissioner or the
commissioner's designee from disclosing any information obtained pursuant to the
provisions of this article to any state, federal, or international law enforcement
agency for use in any criminal or civil investigation or prosecution, nor shall any
such information be considered privileged and confidential in any criminal or civil
matter, investigation, or prosecution by a government agency, except as provided in
part 3 of article 72 of title 24, C.R.S.
(g) Nothing in this article shall preclude the commissioner or the
commissioner's designee from disclosing any information obtained or developed
pursuant to the provisions of this article for use in any private civil matter, nor shall
any such information be considered privileged or confidential, except as provided in
part 3 of article 72 of title 24, C.R.S. Any party in interest may request the
commissioner or the commissioner's designee to find that disclosure of such
information in any private civil matter shall cause substantial injury to the public
interest. If the commissioner finds that disclosure shall cause substantial injury to
the public interest, the commissioner or the commissioner's designee may apply to
the district court for an order permitting restrictions on disclosure as authorized by
section 24-72-204 (6), C.R.S.
(6) Penalties for failing to report. An insurer, the authorized representative
of the insurer, or producer that fails to report as required under the provisions of
this section or that is found to have reported with actual malice by a court of
competent jurisdiction, may, after notice and hearing, have the producer's license
or insurer's certificate of authority suspended or revoked and may be fined in
accordance with sections 10-2-804 (4) and 10-3-1108.