2023 Arizona Revised Statutes › Title 20 - Insurance › § 20-481.21 - Confidential records; consent to release; release without consent; information sharing

20-481.21.
Confidential records;  consent to release;  release without consent;  information sharing
A. All documents,  materials or other information that is in the possession or control of the department and that is obtained by or disclosed to the director or any other person in the course of a filing,  an examination or an investigation made pursuant to sections 20-481.03,  20-481.10,  20-481.12,  20-481.19 and 20-481.20 is recognized by this state as being proprietary and containing trade secrets,  is confidential and privileged,  is not subject to title 39,  chapter 1,  article 2,  is not subject to subpoena and is not subject to discovery or admissible as evidence in a private civil action. The director may use the documents,  materials or other information in the furtherance of any regulatory or legal action brought as a part of the director's official duties. The director shall not make the documents,  materials or other information public without the prior written consent of the insurer to which it pertains unless the director determines,  after giving the insurer and its affiliates who would be affected by the publication notice and an opportunity to be heard,  that the interests of policyholders,  shareholders or the public will be served by the publication. The director may then publish all or any part of the documents,  materials or other information as the director deems appropriate.
B. For the purposes of the information that is reported and provided to the department pursuant to section 20-481.10,  subsection D,  paragraph 2,  the director shall maintain the confidentiality of the following:
1. The group capital calculation and the group capital ratio produced within the calculation.
2. Any group capital calculation information that is received from an insurance holding company system supervised by the federal reserve board or any United States group-wide supervisor.
C. For the purposes of the information that is reported and provided to the department pursuant to section 20-481.10,  subsection D,  paragraph 3,  the director shall maintain the confidentiality of the liquidity stress test results and supporting disclosures and any liquidity stress test framework information that is received from an insurance holding company system supervised by the federal reserve board or any non-United States group-wide supervisor.
D. The director may:
1. Share nonpublic documents,  materials or other information,  including proprietary and trade secret documents and materials,  with other state,  federal and international regulatory agencies,  with the national association of insurance commissioners and with any third-party consultants designated by the director,  with state,  federal and international law enforcement authorities,  including members of any supervisory college described in section 20-481.31,  if the recipient agrees and warrants that it has the authority to maintain the confidentiality and privileged status of the documents,  materials or other information and has verified in writing the legal authority to maintain confidentiality.
2. Receive documents,  materials and other information,  including proprietary and trade secret documents and materials,  from the national association of insurance commissioners or a third-party consultant designated by the director and from regulatory and law enforcement officials of other jurisdictions and shall maintain as confidential or privileged any document,  material or other 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 other information.
E. The director shall enter into written agreements with the national association of insurance commissioners and any third-party consultant designated by the director that govern the sharing and use of information provided pursuant to this article and that are consistent with this section and that do all of the following:
1. Specify procedures and protocols regarding the confidentiality and security of information shared with the national association of insurance commissioners or a third-party consultant designated by the director pursuant to this article,  including procedures and protocols for sharing information by the national association of insurance commissioners with other state,  federal or international regulators. The agreement shall 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.
2. Specify that the director has ownership of all information shared with the national association of insurance commissioners or a third-party consultant designated by the director pursuant to this article and the national association of insurance commissioners' or the third-party consultant's use of the information is subject to the direction of the director.
3. Except as provided in section 20-481.10,  subsection D,  paragraph 3,  prohibit the national association of insurance commissioners or a third-party consultant designated by the director from storing the information shared in this article in a permanent database after the underlying analysis is completed.
4. Require prompt notice to be given to an insurer whose confidential information in the possession of the national association of insurance commissioners or a third-party consultant designated by the director pursuant to this article is subject to a request or subpoena to the national association of insurance commissioners or a third-party consultant designated by the director for disclosure or production.
5. Require the national association of insurance commissioners or a third-party consultant designated by the director to consent to intervention by an insurer in any judicial or administrative action in which the national association of insurance commissioners or a third-party consultant designated by the director may be required to disclose confidential information about the insurer shared with the national association of insurance commissioners and its affiliates and subsidiaries pursuant to this article.
6. For reporting pursuant to section 20-481.10,  subsection D,  paragraph 3,  if the agreement involves a third-party consultant,  provide notification of the identity of any third-party consultant to all applicable insurers.
F. Notwithstanding subsection D,  paragraph 1 of this section,  the director may share confidential and privileged documents,  material or information reported pursuant to section 20-481.10,  subsection D only with the directors or commissioners of insurance of other states having statutes or regulations substantially similar to subsection A of this section and who have agreed in writing not to disclose such information. The sharing of information by the director pursuant to this article does not constitute a delegation of regulatory authority by the director and the director is solely responsible for the administration,  execution and enforcement of this article.
G. A disclosure to or by the director pursuant to this section or as a result of sharing information pursuant to subsection D of this section is not a waiver of any applicable privilege or claim of confidentiality in the documents,  materials or other information disclosed or shared.
H. Documents,  materials or other information in the possession or control of the national association of insurance commissioners or a third-party consultant designated by the director pursuant to this article is confidential by law and privileged,  is not subject to title 39,  chapter 1,  article 2,  is not subject to subpoena and is not subject to discovery or admissible in evidence in any private civil action.
I. The group capital calculation and resulting group capital ratio required by section 20-481.10,  subsection D,  paragraph 2 and the liquidity stress test along with its results and supporting disclosures required by section 20-481.10,  subsection D,  paragraph 3 are regulatory tools for assessing group risks and capital adequacy and group liquidity risks,  respectively,  and are not intended as a means to rank insurers or insurance holding company systems generally. Except as otherwise provided in this article,  the making,  publishing,  disseminating,  circulating or placing before the public,  or causing directly or indirectly to be made,  published,  disseminated,  circulated or placed before the public in a newspaper,  magazine or other publication,  or in the form of a notice,  circular,  pamphlet,  letter or poster,  or over any radio or television station or any electronic means of communication available to the public,  or in any other way as an advertisement,  announcement or statement containing a representation or statement with regard to the group capital calculation,  group capital ratio,  the liquidity stress test results,  or supporting disclosures for the liquidity stress test of any insurer or any insurer group,  or of any component derived in the calculation by any insurer,  broker or other person engaged in any manner in the insurance business would be misleading and is prohibited. If any materially false statement with respect to the group capital calculation,  resulting group capital ratio,  an inappropriate comparison of any amount to an insurer's or insurance group's group capital calculation or resulting group capital ratio,  liquidity stress test result,  supporting disclosures for the liquidity stress test or an inappropriate comparison of any amount to an insurer's or insurance group's liquidity stress test result or supporting disclosures is published in any written publication and the insurer is able to demonstrate to the commissioner with substantial proof the falsity of the statement or the inappropriate comparison,  the insurer may publish announcements in a written publication if the sole purpose of the announcement is to rebut the materially false statement.