08
SB471/AP
Senate
Bill 471
By:
Senator Hudgens of the 47th
AS
PASSED
AN
ACT
To
amend Title 33 of the Official Code of Georgia Annotated, relating to insurance,
so as to provide for regulator financial examinations of domestic insurers every
five years; to provide for the confidentiality of examination work papers; to
provide for the immunity from liability for a contracted examiner to be the same
as that of an employee of the state conducting the same state functions; to
provide a short title; to provide for the submission of an annual statement of
actuarial opinion by an appointed actuary by each property and casualty
insurance company licensed to do business in this state; to provide for
exceptions; to provide for the submission of supporting documentation; to
provide for the confidentiality of certain documents, materials, and other
information; to authorize disclosure under certain conditions; to provide for
certain immunities; to provide for related matters; to provide effective dates;
to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
33 of the Official Code of Georgia Annotated, relating to insurance, is amended
by revising subsection (a) of Code Section 33-2-11, relating to examination of
insurers and organizations, as follows:
"(a)
Whenever the Commissioner shall deem it expedient, the Commissioner shall
examine, either in person or by some examiner duly authorized by the
Commissioner, the affairs, transactions, accounts, records, documents, and
assets of each insurer authorized to do business in this state and any other
facts relative to its business methods, management, and dealings with
policyholders. At least once every five years, the Commissioner shall so
examine each domestic insurer. Examination of an alien insurer shall be limited
to its insurance transactions in the United States."
SECTION
2.
Said
title is further amended by revising subsection (g) of Code Section 33-2-14,
relating to preparation of written reports of examinations generally, as
follows:
"(g)
Notwithstanding the provisions of Article 4 of Chapter 18 of Title 50, relating
to the inspection of public records, all work papers, recorded information,
documents, copies received from another state, and any other materials created,
produced, or obtained by or disclosed to the Commissioner or any other person in
the course of an examination made under this chapter must be given confidential
treatment and are not subject to subpoena and may not be made public by the
Commissioner or any other person. Access may be granted to authorized
representatives of the National Association of Insurance Commissioners. Such
representatives must agree in writing prior to receiving the information to
treat such information confidentially as required by this Code section, unless
the prior written consent of the company to which it pertains has been
obtained."
SECTION
3.
Said
title is further amended by revising Code Section 33-2-15, relating to payment
of expenses of examinations, as follows:
"33-2-15.
(a)
At the direction of the Commissioner, the insurer or other person so examined
shall pay all the actual travel and living expenses of the examination. When
the examination is made by an examiner who is not a regular employee of the
department, the person examined shall pay the proper charges for the services of
the examiner and his or her assistants and the actual travel and living expenses
incurred by such examiners and assistants in an amount approved by the
Commissioner. A consolidated account for the examination shall be filed by the
examiner with the Commissioner. No person shall pay and no examiner shall
accept any additional emolument on account of any examination. When the
examination is conducted in whole or in part by regular salaried employees of
the department, payment for such services and proper expenses shall be made by
the person examined to the Commissioner, and such payment shall be deposited in
the state treasury; provided, however, that, when an agent, broker, solicitor,
counselor, or adjuster is examined because of a complaint filed against such
agent, broker, solicitor, counselor, or adjuster and when the Commissioner finds
that the complaint was not justified, the expenses of the examination shall not
be assessed against the agent, broker, solicitor, counselor, or adjuster but
shall be borne by the department.
(b)
An examiner or other person appointed or authorized by the Commissioner, while
participating in an examination conducted under this chapter, shall enjoy the
same immunities as those of a regular employee of the department under similar
circumstances."
SECTION
4.
Said
title is further amended by adding a new chapter to read as
follows:
"CHAPTER
62
33-62-1.
This
chapter shall be known and may be cited as the 'Property and Casualty Actuarial
Opinion Law.'
33-62-2.
(a)
Every property and casualty insurance company doing business in this state,
unless otherwise exempted by the domiciliary commissioner, shall annually submit
the opinion of an appointed actuary entitled 'Statement of Actuarial Opinion.'
This opinion shall be filed in accordance with rules and regulations promulgated
by the Commissioner regarding property and casualty annual statement
instructions.
(b)(1)
Every property and casualty insurance company domiciled in this state that is
required to submit a statement of actuarial opinion shall annually submit an
actuarial opinion summary written by the company´s appointed actuary. This
actuarial opinion summary shall be filed in accordance with rules and
regulations promulgated by the Commissioner regarding property and casualty
annual statement instructions and shall be considered as a document supporting
the actuarial opinion required in subsection (a) of this Code
section.
(2)
A company licensed but not domiciled in this state shall provide the actuarial
opinion summary upon request.
(c)(1)
An actuarial report and underlying work papers as required by rules and
regulations promulgated by the Commissioner regarding property and casualty
annual statement instructions shall be prepared to support each actuarial
opinion.
(2)
If the insurance company fails to provide a supporting actuarial report or work
papers at the request of the Commissioner or the Commissioner determines that
the supporting actuarial report or work papers provided by the insurance company
are otherwise unacceptable to the Commissioner, the Commissioner may engage a
qualified actuary at the expense of the insurance company to review the opinion
and the basis for the opinion and prepare the supporting actuarial report or
work papers.
(d)
The appointed actuary shall not be liable for damages to any person other than
the insurance company and the Commissioner for any act, error, omission,
decision, or conduct with respect to the actuary´s opinion except in cases
of fraud or willful misconduct on the part of the appointed
actuary.
33-62-3.
(a)
The statement of actuarial opinion shall be provided with the annual statement
in accordance with rules and regulations promulgated by the Commissioner
regarding property and casualty annual statement instructions and shall be
treated as a public document.
(b)(1)
Documents, materials, or other information in the possession or control of the
department that are considered an actuarial report, work papers, or actuarial
opinion summary provided in support of the opinion and any other material
provided by the insurance company to the Commissioner in connection with the
actuarial report, work papers, or the actuarial opinion summary shall be
confidential by law and privileged, shall not be subject to disclosure under
Article 4 of Chapter 18 of Title 50, shall not be subject to subpoena, and shall
not be subject to discovery or admissible in evidence in any private civil
action.
(2)
The provisions of this subsection shall not be construed to limit the
Commissioner´s authority to release the documents to the Actuarial Board
for Counseling and Discipline so long as the material is required for the
purpose of professional disciplinary proceedings and that the Actuarial Board
for Counseling and Discipline establishes procedures satisfactory to the
Commissioner for preserving the confidentiality of the documents. In addition,
the provisions of this subsection shall not be construed to limit the
Commissioner´s authority to use the documents, materials, or other
information in furtherance of any regulatory or legal action brought as a part
of the Commissioner´s official duties.
(c)
Neither the Commissioner nor any person who received documents, materials, or
other information while acting under the authority of the Commissioner shall be
permitted or required to testify in any private civil action concerning such
confidential documents, materials, or other information subject to subsection
(b) of this Code section.
(d)
In order to assist the Commissioner in the performance of his or her duties, the
Commissioner may:
(1)
Share documents, materials, and other information, including confidential and
privileged documents, materials, and information subject to subsection (b) of
this Code section with other state, federal, and international regulatory
agencies, with the National Association of Insurance Commissioners and its
affiliates and subsidiaries, and with state, federal, and international law
enforcement authorities, provided that the recipient agrees to maintain the
confidentiality and privileged status of the document, material, or other
information and has the legal authority to maintain
confidentiality;
(2)
Receive documents, materials, and other information, including otherwise
confidential and privileged documents, materials, or information, from the
National Association of Insurance Commissioners and its affiliates and
subsidiaries and from regulatory and law enforcement officials of other foreign
or domestic jurisdictions. The Commissioner shall maintain as confidential and
privileged any document, material, or information received with notice and the
understanding that it is confidential or privileged under the laws of the
jurisdiction that is the source of the document, material, or information;
and
(3)
Enter into agreements concerning sharing and use of information consistent with
this subsection and subsections (b) and (c) of this Code section.
(e)
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 under this Code section or as a result of sharing as authorized
by subsection (d) of this Code section."
SECTION
5.
Section
4 of this Act shall become effective on January 1, 2010. All other sections of
this Act shall become effective on July 1, 2008.
SECTION
6.
All
laws and parts of laws in conflict with this Act are repealed.