§ 26.1-26-34 — Notification to commissioner of termination

1. Termination for cause. An insurer or authorized representative of the insurer that
terminates the appointment, employment, contract, or other insurance business
relationship with an insurance 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 section
26.1-26-42 or the insurer has knowledge the insurance producer was found by a court,
government body, or self-regulatory organization authorized by law to have engaged in
any of the activities in section 26.1-26-42. 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 insurance producer.
2. Termination without cause. An insurer or authorized representative of the insurer that
terminates the appointment, employment, or contract with an insurance producer for
any reason not set forth in section 26.1-26-42 shall notify the commissioner within
thirty days following the effective date of the termination, using a format prescribed by
the commissioner. Upon written request of the commissioner, the insurer shall provide
additional information, documents, records, or other data pertaining to the termination.
3. Ongoing notification requirement. The insurer or the authorized representative of the
insurer shall promptly notify the commissioner in a format acceptable to the
commissioner if, upon further review or investigation, the insurer discovers additional
information that would have been reportable to the commissioner in accordance with
subsection 1 had the insurer then known of the information's existence.
4. Copy of notification to be provided to insurance producer.
a. Within fifteen days after making the notification required by subsections 1, 2, and
3, the insurer shall mail a copy of the notification to the insurance producer at the
insurance producer's last-known address. If the insurance producer is terminated
for cause for any of the reasons listed in section 26.1-26-42, the insurer shall
provide a copy of the notification to the insurance producer at the insurance
producer's last-known address by certified mail, return receipt requested, postage
prepaid or by overnight delivery using a nationally recognized carrier.

b. Within thirty days after the insurance producer has received the original or
additional notification, the insurance producer may file written comments
concerning the substance of the notification with the commissioner. The
insurance producer shall, by the same means, simultaneously send a copy of the
comments to the reporting insurer, and the comments become a part of the
commissioner's file and must accompany every copy of a report distributed or
disclosed for any reason about the insurance producer as permitted under
subsection 6.
5. Immunities.
a. In the absence of actual malice, an insurer, the authorized representative of the
insurer, an insurance producer, the commissioner, or an organization of which the
commissioner is a member and that compiles the information and makes it
available to other insurance commissioners or regulatory or law enforcement
agencies is not subject to civil liability, and a civil cause of action of any nature
does 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 insurance producer; or a
statement by a terminating insurer or insurance producer to an insurer or
insurance producer limited solely and exclusively to whether a termination for
cause under subsection 1 was reported to the commissioner, provided that the
propriety of any termination for cause under subsection 1 is certified in writing by
an officer or authorized representative of the insurer or insurance producer
terminating the relationship.
b. In any action brought against a person who may have immunity under
subdivision a for making any statement required by this section or providing any
information relating to any statement that may be requested by the commissioner,
the party bringing the action shall plead specifically in any allegation that
subdivision a does not apply because the person making the statement or
providing the information did so with actual malice.
c. Subdivision a or b does not abrogate or modify any existing statutory or
common-law privileges or immunities.
6. Confidentiality.
a. Any documents, materials, or other information in the control or possession of the
insurance department that is furnished by an insurer, insurance producer, or an
employee or agent thereof acting on behalf of the insurer or insurance producer,
or obtained by the commissioner, in an investigation pursuant to this section is
confidential and privileged, is not subject to subpoena, and is not subject to
discovery or admissible in evidence in any private civil action. However, the
commissioner may 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 receives documents, materials, or
other information while acting under the authority of the commissioner may be
permitted or required to testify in any private civil action concerning any
confidential documents, materials, or information subject to subdivision a.
c. In order to assist in the performance of the commissioner's duties under this
chapter, the commissioner:
(1) May share documents, materials, or other information, including the
confidential and privileged documents, materials, or information subject to
subdivision a, with other state, federal, and international regulatory
agencies, with the national association of insurance commissioners, its
affiliates or subsidiaries, and with state, federal, and international law
enforcement authorities, provided that the recipient agrees to maintain the
confidentiality and privileged status of the document, material, or other
information;

(2) May 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 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
(3) May enter into agreements governing sharing and use of information
consistent with this subsection.
(4) A privilege or claim of confidentiality in the documents, materials, or
information shall not be waived as a result of disclosure to the commissioner
under this section or as a result of sharing as authorized in paragraph 3.
(5) Nothing in this chapter prohibits the commissioner from releasing final,
adjudicated actions, including for-cause terminations that are open to public
inspection to a database or other clearinghouse service maintained by the
national association of insurance commissioners, its affiliates, or
subsidiaries of the national association of insurance commissioners.
7. Penalties for failing to report. An insurer, the authorized representative of the insurer,
or insurance 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 its license or certificate of authority
suspended or revoked and may be fined in accordance with sections 26.1-26-42,
26.1-26-43, and 26.1-26-50.