§ 27-2.4-16. Notification to insurance commissioner of termination.
(a) 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 insurance commissioner within thirty (30) days following the effective
date of the termination, using a format prescribed by the insurance commissioner,
if the reason for termination is one of the reasons set forth in § 27-2.4-14 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 § 27-2.4-14. Upon the written request of the insurance commissioner, the insurer shall provide
additional information, documents, records, or other data pertaining to the termination
or activity of the insurance producer.
(b) Termination without cause. An insurer or authorized representative of the insurer that terminates the appointment,
employment, or contract with a producer for any reason not set forth in § 27-2.4-14, shall notify the insurance commissioner within thirty (30) days following the effective
date of the termination, using a format prescribed by the insurance commissioner.
Upon written request of the insurance commissioner, the insurer shall provide additional
information, documents, records, or other data pertaining to the termination.
(c) Ongoing notification requirement. The insurer or the authorized representative of the insurer shall promptly notify
the insurance commissioner in a format acceptable to the insurance commissioner if,
upon further review or investigation, the insurer discovers additional information
that would have been reportable to the insurance commissioner in accordance with subsection
(a) of this section had the insurer then known of its existence.
(d) Copy of notification to be provided to the insurance producer.
(1) Within fifteen (15) days after making the notification required by subsections (a)
and (c) of this section, the insurer shall mail a copy of the notification to the
insurance producer at the producer's last known address. If the insurance producer
is terminated for cause for any of the reasons listed in § 27-2.4-14, the insurer shall provide a copy of the notification to the insurance producer at
the producer's last known address by certified mail, return receipt requested, postage
prepaid, or by overnight delivery using a nationally recognized carrier.
(2) Within thirty (30) 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 insurance commissioner. The insurance 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 insurance commissioner's file
and accompany every copy of a report distributed or disclosed for any reason about
the insurance producer as permitted under subsection (f) of this section.
(e) Immunities.
(1) In the absence of actual malice, an insurer, the authorized representative of the
insurer, an insurance producer, the insurance commissioner, or an organization of
which the insurance commissioner is a member and that compiles the information and
makes it available to other insurance commissioners or regulatory or law enforcement
agencies shall not be subject to civil liability, except as provided in this section,
and a civil cause of action of any nature shall not arise against these entities or
their respective agents or employees, except as provided in this section, 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
insurance 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 (a) of
this section was reported to the insurance commissioner, provided that the propriety
of any termination for cause under subsection (a) of this section is certified in
writing by an officer or authorized representative of the insurer or insurance producer
terminating the relationship.
(2) In any action brought against a person that may have immunity under this chapter for
making any statement required by this section or providing any information relating
to any statement that may be requested by the insurance commissioner, the party bringing
the action shall plead specifically in any allegation that subsection (e)(1) of this
section does not apply because the person making the statement or providing the information
did so with actual malice.
(3) This chapter shall not abrogate or modify any existing statutory or common law privileges
or immunities.
(f) Confidentiality.
(1) Any documents, materials, or other information in the control or possession of the
department that is furnished by an insurer, insurance producer, or an employee or
agent of the insurer or insurance producer acting on behalf of the insurer or insurance
producer, or obtained by the insurance commissioner in an investigation pursuant to
this section, shall be confidential by law and privileged, shall not be subject to
chapter 2 of title 38, shall not be subject to subpoena, and shall not be subject to discovery or admissible
in evidence in any private civil action. The insurance 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 insurance commissioner's duties.
(2) Neither the insurance commissioner nor any person who received documents, materials,
or other information while acting under the authority of the insurance commissioner
shall be permitted or required to testify in any private civil action concerning any
confidential documents, materials, or information subject to this chapter.
(3) In order to assist in the performance of the insurance commissioner's duties under
this chapter, the insurance commissioner:
(i) May share documents, materials, or other information, including the confidential and
privileged documents, materials, or information subject to this chapter, with other
state, federal, and international regulatory agencies, with the NAIC, 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;
(ii) May receive documents, materials, or information, including confidential and privileged
documents, materials, or information, from the NAIC, 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;
(iii) May enter into agreements governing sharing and use of information consistent with
this subsection (f);
(iv) 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 this chapter;
(v) Nothing in this chapter shall prohibit the insurance commissioner from releasing final,
adjudicated actions including for cause terminations that are open to public inspection
pursuant to chapter 2 of title 38 to a database or other clearinghouse service maintained by the NAIC, its affiliates
or subsidiaries; and
(vi) If the department releases to an unauthorized third party any documents, materials,
or other information provided to the department pursuant to this section, then the
department shall be subject to a fine not to exceed one thousand dollars ($1,000)
after a hearing on this violation brought in the Superior Court.
(g) 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 § 42-14-16.