Amended in Assembly January 17, 2014

Amended in Assembly January 6, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1234


Introduced by Assembly Member Levine

February 22, 2013


An act to amend Section 1215.8 of the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL’S DIGEST

AB 1234, as amended, Levine. Insurance: registration statements.

Existing law governs the business of insurance and authorizes the Insurance Commissioner to provide oversight over the insurance industry, including conducting investigations and bringing enforcement actions.

Existing law requires each insurer that is authorized to do business in this state and that is a member of an insurance holding company system to register with the commissioner and to file a registration statement containing specified information, including the capital structure and general financial condition of the insurer and specified transactions between the insurer and its affiliates.

Existing law makes the information reported to the commissioner in the registration statement and information disclosed in the course of an examination or investigation of the registration statement exempt from subpoena or public disclosure, except as specified.

This bill wouldbegin delete provide thatend deletebegin insert instead makeend insert information reported to the commissioner in the registration statement and information disclosed in the course of an examination or investigation of the registration statementbegin delete isend deletebegin insert exempt from public disclosure by the commissioner andend insert not subject to discoverybegin insert from the commissionerend insert or admissible into evidence in any private civil actionbegin insert if obtained from the commissioner in any manner, except as specifiedend insert.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1215.8 of the Insurance Code is amended
2to read:

3

1215.8.  

(a) All information, documents, and copies thereof
4obtained by or disclosed to the commissioner or any other person
5in the course of an examination or investigation made pursuant to
6Sections 1215.4 and 1215.5, and all information reported pursuant
7to Section 1215.4, shall be kept confidential,begin delete shallend deletebegin insert isend insert notbegin delete beend delete subject
8to disclosurebegin insert by the commissionerend insert pursuant to the California Public
9Records Act (Chapter 3.5 (commencing with Section 6250) of
10Division 7 of Title 1 of the Government Code),begin delete shallend deletebegin insert isend insert notbegin delete beend delete
11 subject to subpoena, andbegin delete shallend deletebegin insert isend insert notbegin delete beend delete subject to discoverybegin insert from
12the commissionerend insert
or admissible into evidence in any private civil
13actionbegin insert if obtained from the commissioner in any mannerend insert. This
14information shall not be made public by the commissioner or any
15other person except to insurance departments of other states without
16the prior written consent of the insurance company to which it
17pertains, unless the commissioner, after giving the insurer and its
18affiliates who would be affected thereby notice and opportunity
19to be heard, determines that the interests of policyholders,
20shareholders, or the public will be served by the publication thereof,
21in which event he or she may publish all or any part thereof in a
22manner as he or she may deem appropriate.

23(b) In order to assist in the performance of the commissioner’s
24duties, the commissioner:

25(1) May, upon request, be required to share documents,
26materials, or other information, including the confidential and
27privileged documents, materials, or information subject to
28subdivision (a), with other state, federal, and international
29regulatory agencies, with the NAIC and its affiliates and
30subsidiaries, and with state, federal, and international law
31enforcement authorities, including members of any supervisory
P3    1college described in Section 1215.7; provided that the recipient
2agrees in writing to maintain the confidentiality and privileged
3status of the documents, materials, or other information, and has
4verified in writing the legal authority to maintain confidentiality.

5(2) Notwithstanding paragraph (1),begin delete the commissionerend delete may only
6share confidential and privileged documents, materials, or
7information reported pursuant to subdivision (m) of Section 1215.4
8with commissioners of states having statutes or regulations
9substantially similar to subdivision (a) and who have agreed in
10writing not to disclose the information.

11(3) May receive documents, materials, or information, including
12otherwise confidential and privileged documents, materials, or
13information, from the NAIC and its affiliates and subsidiaries and
14from regulatory and law enforcement officials of other foreign or
15domestic jurisdictions, and shall maintain as confidential or
16privileged any documents, materials, or information received with
17notice or the understanding that it is confidential or privileged
18under the laws of the jurisdiction that is the source of the
19documents, materials, or information.

20(4) May enter into written agreements with the NAIC governing
21sharing and use of information provided pursuant to this
22subdivision consistent with this subdivision that shall do the
23following:

24(A) Specify procedures and protocols regarding the
25confidentiality and security of information shared with the NAIC
26and its affiliates and subsidiaries pursuant to this subdivision,
27including procedures and protocols for sharing by the NAIC with
28other state, federal, or international regulators.

29(B) Specify that ownership of information shared with the NAIC
30and its affiliates and subsidiaries pursuant to this subdivision
31remains with the commissioner and the NAIC’s use of the
32information is subject to the direction of the commissioner.

33(C) Require prompt notice to be given to an insurer whose
34confidential information in the possession of the NAIC pursuant
35to this subdivision is subject to a request or subpoena to the NAIC
36for disclosure or production.

37(D) Require the NAIC and its affiliates and subsidiaries to
38consent to intervention by an insurer in any judicial or
39administrative action in which the NAIC and its affiliates and
40subsidiaries may be required to disclose confidential information
P4    1about the insurer shared with the NAIC and its affiliates and
2subsidiaries pursuant to this subdivision.

3(c) The sharing of information by the commissioner pursuant
4to this subdivision shall not constitute a delegation of regulatory
5authority or rulemaking, and the commissioner is solely responsible
6for the administration, execution, and enforcement of the provisions
7of this article.

8(d) No waiver of any applicable privilege or claim of
9confidentiality in the documents, materials, or information shall
10occur as a result of disclosure to the commissioner under this
11section or as a result of sharing as authorized in subdivision (c).

12(e) Documents, materials, or other information filed in the
13possession or control of the NAIC pursuant to this subdivision
14shall be confidential by law and privileged, shall not be subject to
15subpoena, and shall not be subject to discovery or admissible in
16evidence in any private civil action.



O

    97