House of Representatives

SB 1020

insurance department; information sharing

Sponsors: Senator Cirillo

 

DP

Committee on Financial Institutions and Insurance

DP

Caucus and COW

 

X

As Transmitted to the Governor

 

SB 1020 allows the Director of the Department of Insurance (DOI) to exchange nonpublic information with regulatory agencies, the National Association of Insurance Commissioners, law enforcement officials and federal government agencies.  The recipient must be capable of keeping the information confidential and agree to do so.   

 

History

Congress passed the Graham Leach Bliley Act (GLBA) in 1999, which makes many changes relating to financial institutions.  GLBA allows banks and insurance companies to transact each other’s business and permits financial holding companies to exist.  Currently, statute implies DOI has the authority to disclose various kinds of information.  SB 1020 explicitly gives DOI authority to share information with various entities.    

 

Provisions

·                      Allows the Director to disclose nonpublic sections of an examination report, preliminary report or related matter to other states’ insurance departments and law enforcement officials and the federal government. 

·                      States the Director may share and receive nonpublic information with regulatory agencies, the National Association of Insurance Commissioners, law enforcement officials and federal government agencies.

·                      Requires the recipient of the nonpublic documents, materials, and information to have the authority to maintain its confidentiality and privileged status and agree to such conditions.

·                      Establishes that the Director may enter into agreements governing the sharing and use of nonpublic information. 

·                      Clarifies that the Director’s disclosure of any nonpublic information does not mean privileges or confidentiality claims are waived. 

·                      Specifies that the Director may use the documents, materials and information to further regulatory or legal actions pursuant to the director’s official duties.

·                      Makes technical changes.

 

 

 

 

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45th Legislature                                                                                                                                

First Regular Session                                   2                                                              May 2, 2001

 

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