NRS 692C.420 Confidentiality of disclosed information; exception; privileges; agreements governing sharing and use of information; effect of sharing or disclosure; applicability to third parties.

932 words·~4 min read·/nv/chapter-692c-holding-companies/692c-420·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. Except as otherwise provided in NRS 239.0115 , all information, documents and copies thereof obtained by or disclosed to the Commissioner or any other person in the course of an examination or investigation made pursuant to NRS 692C.410 , and all information reported or provided to the Commissioner pursuant to subsections 12 and 13 of NRS 692C.190 , NRS 692C.260 to 692C.350 , inclusive, and 692C.378 , is recognized by this State as being proprietary and to contain trade secrets, is confidential, is not subject to subpoena, is not subject to discovery, is not admissible in evidence in any private civil action and must not be made public by the Commissioner or any other person, except to insurance departments of other states, without the prior written consent of the insurer to which it pertains unless the Commissioner, after giving the insurer and its affiliates who would be affected thereby notice and an opportunity to be heard, determines that the interests of policyholders, shareholders or the public will be served by the publication thereof, in which event he or she may publish all or any part thereof in any manner as he or she may deem appropriate.

For the purposes of the information reported and provided to the Commissioner pursuant to subsections 3 to 6, inclusive, of NRS 692C.290 , the Commissioner shall maintain the confidentiality of the group capital calculation and group capital ratio produced within the calculation and any group capital information received from an insurance holding company supervised by the Federal Reserve Board or any United States group-wide supervisor. For the purposes of the information reported and provided to the Commissioner pursuant to subsections 7 to 10, inclusive, of NRS 692C.290 , the Commissioner shall maintain the confidentiality of the liquidity stress test results and supporting disclosures and any liquidity stress test information received from an insurance holding company supervised by the Federal Reserve Board and non-United States group-wide supervisors.

2. The Commissioner or any person who receives any documents, materials or other information while acting under the authority of the Commissioner must not be permitted or required to testify in a private civil action concerning any information, document or copy thereof specified in subsection 1.

3. The Commissioner may share or receive any information, document or copy thereof specified in subsection 1, including, without limitation, proprietary and trade secret documents and materials, in accordance with NRS 679B.122 . The sharing or receipt of the information, document or copy pursuant to this subsection does not waive any applicable privilege or claim of confidentiality in the information, document or copy.

4. The Commissioner shall enter into a written agreement with the NAIC and any third party consultant designated by the Commissioner governing the sharing and use of information specified in subsection 1. The agreement must contain provisions which:

(a)Specify procedures and protocols regarding the confidentiality and security of information shared with the NAIC or a third party consultant designated by the Commissioner, including procedures and protocols for sharing by the NAIC with other state, federal and international regulators. With regard to the requirements of this paragraph, the agreement must provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the documents, materials or other information and has verified in writing the legal authority to maintain such confidentiality.

(b)Specify that ownership of the information shared with the NAIC or a third party consultant designated by the Commissioner remains with the Commissioner and the NAIC’s, or the third party consultant’s, use of the information is subject to the discretion of the Commissioner.

(c)Except as otherwise provided in this paragraph, prohibit the NAIC or third party consultant designated by the Commissioner from storing the information shared pursuant to NRS 692C.290 in a permanent database after the underlying analysis is completed. The provisions of this paragraph do not apply to documents, material or information reported pursuant to subsections 7 to 10, inclusive, of NRS 692C.290 .

(d)Require prompt notice to be given to an insurer whose confidential information in the possession of the NAIC or a third party consultant designated by the Commissioner is subject to a request or subpoena to the NAIC or the third party consultant for disclosure or production.

(e)Require the NAIC or a third party consultant designated by the Commissioner to consent to intervention by an insurer in any judicial or administrative action in which the NAIC or the third party consultant may be required to disclose confidential information about the insurer shared with the NAIC or the third party consultant.

5. The sharing of information by the Commissioner does not constitute a delegation of regulatory authority or rulemaking, and the Commissioner is solely responsible for the administration, execution and enforcement of the provisions of this section.

6. 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 in accordance with this section or as a result of sharing as authorized in this section.

7. Documents, materials and other information in the possession or control of the NAIC or a third party consultant designated by the Commissioner in accordance with this section are:

(a)Confidential by law and privileged;

(b)Not subject to the provisions of chapter 239 of NRS;

(c)Not subject to subpoena; and

(d)Not subject to discovery or admissible in evidence in any private civil action.