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§ 4-506. Third-party consultants

West's Annotated Code of MarylandInsuranceEffective: July 1, 2019

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 4. General Requirements for Insurers
Subtitle 5. Corporate Governance Annual Disclosure Act (Refs & Annos)
Effective: July 1, 2019
MD Code, Insurance, § 4-506
§ 4-506. Third-party consultants
Currentness
In general
(a)(1) The Commissioner may retain, at an insurer's expense, third-party consultants as may be reasonably necessary to assist the Commissioner in:
(i) reviewing a CGAD and documents, materials, or other CGAD-related information; or
(ii) determining an insurer's compliance with this subtitle.
(2) Third-party consultants retained under paragraph (1) of this subsection may include attorneys, actuaries, accountants, and any other experts not otherwise a part of the Commissioner's staff.
Direction, control, and capacity of third-party consultants
(b) Any person retained under subsection (a) of this section shall:
(1) be under the direction and control of the Commissioner; and
(2) act in a purely advisory capacity.
Confidentiality
(c) The NAIC and any third-party consultant shall be subject to the same confidentiality standards and requirements as the Commissioner.
Conflicts of interest
(d) As part of the retention process, a third-party consultant shall verify to the Commissioner, with notice to the insurer, that the third-party consultant:
(1) is free of a conflict of interest with the insurer; and
(2) has internal procedures in place to monitor compliance regarding any conflict and to comply with the confidentiality standards and requirements under this subtitle.
Written agreement
(e)(1) The Commissioner shall enter into a written agreement with the NAIC or a third-party consultant governing sharing and use of documents, materials, or other CGAD-related information submitted to the Commissioner under this subtitle.
(2) The written agreement under paragraph (1) of this subsection shall:
(i) require the written consent of an insurer before making public documents, materials, or other CGAD-related information submitted to the Commissioner under this subtitle;
(ii) specify procedures and protocols for maintaining the confidentiality and security of documents, materials, or other CGAD-related information shared with the NAIC or a third-party consultant under this subtitle;
(iii) specify procedures and protocols for the sharing of documents, materials, or other CGAD-related information by the NAIC only with other state regulators from states in which an insurance group has domiciled insurers;
(iv) specify that the recipient of any documents, materials, or other CGAD-related information:
1. agrees in writing to maintain the confidentiality and privileged status of the documents, materials, or other CGAD-related information; and
2. has verified in writing the legal authority to maintain confidentiality;
(v) specify that:
1. ownership of the documents, materials, or other CGAD-related information shared under this subtitle with the NAIC or a third-party consultant remains with the Commissioner; and
2. the NAIC's or third-party consultant's use of the information is subject to the direction of the Commissioner;
(vi) prohibit the NAIC and any third-party consultant from storing documents, materials, or other CGAD-related information shared under this subtitle in a permanent database after the underlying analysis is completed;
(vii) require the NAIC and any third-party consultant to provide prompt notice to the Commissioner and to the insurer or insurance group of which the insurer is a member regarding any subpoena, request for disclosure, or request for production of the insurer's documents, materials, or other CGAD-related information; and
(viii) require the NAIC and any third-party consultant 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 documents, materials, or other CGAD-related information about the insurer shared with the NAIC or the third-party consultant under this subtitle.

Credits

Added by Acts 2019, c. 105, § 1, eff. July 1, 2019.
MD Code, Insurance, § 4-506, MD INSURANCE § 4-506
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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