§ 10-3-1606 — Retention of third-party consultants - information sharing

(1)
The commissioner may retain, at the expense of an insurer or insurance group, one
or more third-party consultants, including attorneys, actuaries, accountants, and
other experts who are not otherwise members of the commissioner's staff, as may
be reasonably necessary to assist the commissioner in reviewing the insurer's or
insurance group's CGAD and related information or the insurer's or insurance
group's compliance with this part 16.

(2) Any persons retained pursuant to subsection (1) of this section shall act
under the direction and control of the commissioner and in a purely advisory
capacity.

(3) The NAIC and third-party consultants are subject to the same
confidentiality standards and requirements established for the commissioner in
section 10-3-1605 and elsewhere in this part 16.

(4) As part of the retention process, a third-party consultant shall verify to
the commissioner that the consultant has no conflict of interest, has internal
procedures in place to prevent conflicts of interest, and will comply with the
confidentiality standards and requirements of this part 16. A third-party consultant
shall also provide such verification to the insurer or insurance group whose CGAD
the third-party consultant will review.

(5) A written agreement with the NAIC or with a third-party consultant that
governs sharing and use of information provided pursuant to this part 16 must
contain the following provisions and must expressly require the written consent of
the insurer or insurance group before any such information may be publicly
disclosed:

(a) Specific procedures and protocols for maintaining the confidentiality and
security of CGAD-related information that is shared with the NAIC or with a third-party consultant pursuant to this part 16;

(b) Procedures and protocols for sharing by the NAIC only with other state
regulators from states in which an insurance group has domiciled insurers. The
agreement shall provide that the recipient agrees in writing to maintain the
confidentiality and privileged status of the CGAD-related documents, materials, or
other information and has verified in writing the legal authority to maintain
confidentiality.

(c) A provision specifying that ownership of the CGAD-related information
shared with the NAIC or with a third-party consultant remains with the division, and
the NAIC's or third-party consultant's use of the information is subject to the
direction of the commissioner;

(d) A provision that prohibits the NAIC or third-party consultant from storing
the information shared pursuant to this part 16 in a permanent database after the
underlying analysis is completed;

(e) A provision requiring the NAIC or third-party consultant to provide
prompt notice to the commissioner and to the insurer or insurance group regarding
any subpoena, request for disclosure, or request for production of the insurer's
CGAD-related information; and

(f) A provision stating that the NAIC or third-party consultant consents to
intervention by an insurer or insurance group in any judicial or administrative action
in which the NAIC or third-party consultant may be required to disclose confidential
information about the insurer or insurance group.

Source: L. 2019: Entire part added, (HB 19-1291), ch. 188, p. 2088, � 1,
effective August 2.