Arkansas Code of 1987 (2023) › Title 23 - PUBLIC UTILITIES AND REGULATED INDUSTRIES (§§ 23-1-101 — 23-119-105) › Subtitle 3 - INSURANCE (§§ 23-60-101 — 23-103-417) › Chapter 63 - INSURANCE COMPANIES GENERALLY (§§ 23-63-101 — 23-63-2010) › Subchapter 20 - CORPORATE GOVERNANCE ANNUAL DISCLOSURE ACT (§§ 23-63-2001 — 23-63-2010) › Section 23-63-2007 - Third-party consultants

(a)
The Insurance Commissioner may retain, at the insurer's expense, third-party consultants, including attorneys, actuaries, accountants, and other experts not otherwise a part of the commissioner's staff, as may be reasonably necessary to assist the commissioner in reviewing the corporate governance annual disclosure and related information or the insurer's compliance with this subchapter.
(b)
A person retained under subsection (a) of this section shall be under the direction and control of the commissioner and shall act in a purely advisory capacity.
(c)
The National Association of Insurance Commissioners and third-party consultants shall be subject to the same confidentiality standards and requirements as the commissioner.
(d)
As part of the retention process, a third-party consultant shall verify to the commissioner, with notice to the insurer, that it:
(1)
Is free of a conflict of interest;
(2)
Has internal procedures in place to monitor compliance with a conflict of interest; and
(3)
Shall comply with the confidentiality standards and requirements of this subchapter.
(e)
A written agreement with the National Association of Insurance Commissioners or a third-party consultant governing sharing and use of information provided under this subchapter shall contain the following provisions and require the written consent of the insurer before making public any information provided under this subchapter:
(1)
Specific procedures and protocols for maintaining the confidentiality and security of corporate governance annual disclosure-related information shared with the National Association of Insurance Commissioners or the third-party consultant under this subchapter;
(2)
(A)
Procedures and protocols for sharing by the National Association of Insurance Commissioners only with other state regulators from states in which the insurance group has domiciled insurers.
(B)
The agreement shall provide that the recipient agrees in writing to maintain the confidentiality and privileged status of the corporate governance annual disclosure-related documents, materials, or other information and has verified in writing the legal authority to maintain confidentiality;
(3)
A provision specifying that ownership of the corporate governance annual disclosure-related information shared with the National Association of Insurance Commissioners or the third-party consultant remains with the State Insurance Department and that the National Association of Insurance Commissioners' or third-party consultant's use of the information is subject to the direction of the commissioner;
(4)
A provision that prohibits the National Association of Insurance Commissioners or the third-party consultant from storing the information shared under this subchapter in a permanent database after the underlying analysis is complete;
(5)
A provision requiring the National Association of Insurance Commissioners or the third-party consultant to provide prompt notice to the commissioner and to the insurer or insurance group regarding any subpoena, request for disclosure, or request for production of the insurer's corporate governance annual disclosure-related information; and
(6)
A requirement that the National Association of Insurance Commissioners or the third-party consultant consent to intervention by an insurer in any judicial or administrative action in which the National Association of Insurance Commissioners or the third-party consultant may be required to disclose confidential information about the insurer that has been shared with the National Association of Insurance Commissioners or the third-party consultant under this subchapter.
Added by Act 2019, No. 521,§ 16, eff. 7/24/2019.