2018 Pennsylvania Consolidated Statutes
Title 40 - INSURANCE
Chapter 39 - Corporate Governance Annual Disclosure
Section 3907 - Confidentiality
(a) General rule.--The CGAD-related information in the possession or control of the department that is produced by, obtained by or disclosed to the department or any other person under this chapter shall be privileged and given confidential treatment and shall not be:
(1) subject to discovery or admissible as evidence in a private civil action;
(2) subject to subpoena;
(3) subject to the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law; or
(4) made public by the department or any other person without the prior written consent of the insurer or insurance group to which it pertains, except as provided in subsection (c).
(b) Private civil actions.--The commissioner, the department, a person who receives CGAD-related information while acting under the authority of the commissioner or department or a person with whom the CGAD-related information is shared under this chapter shall not be permitted or required to testify in a private civil action concerning confidential CGAD-related information.
(c) Use of CGAD-related information by department.--To assist in the performance of regulatory duties, the department may:
(1) Use CGAD-related information in furtherance of a regulatory or legal action brought pursuant to the department's official duties.
(2) Share CGAD-related information with the NAIC, regulatory or law enforcement officials of this Commonwealth or other jurisdictions, group supervisors, members of a supervisory college under section 1406.1 of the Insurance Company Law and third-party consultants under section 3906 (relating to third-party consultants) if, prior to receiving the CGAD-related information, the recipient demonstrates by written statement the necessary authority and intent to give confidential treatment to the CGAD-related information as required by this chapter.
(3) Receive and maintain as confidential CGAD-related information from the NAIC, regulatory or law enforcement officials of this Commonwealth or other jurisdictions, group supervisors and members of a supervisory college under section 1406.1 of The Insurance Company Law if the CGAD-related information is confidential by law in the jurisdiction from which it was received. CGAD-related information obtained under this paragraph shall be given confidential treatment, shall not be subject to subpoena and shall not be made public by the department, the commissioner or any other person.
(d) Written agreements.--The department shall enter into a written agreement with the NAIC or a third-party consultant governing the sharing and use of information provided under this chapter that includes all of the following:
(1) Specific procedures and protocols for maintaining the confidentiality and security of CGAD-related information.
(2) Procedures and protocols for sharing CGAD-related information only with regulators from other states in which the insurance group has domiciled insurers, including a written acknowledgment of the recipient's intent and legal authority to maintain the confidential and privileged status of the CGAD-related information.
(3) A provision specifying that ownership of the CGAD-related information shared remains with the department and that the use of the CGAD-related information is subject to the direction and approval of the department.
(4) A provision that prohibits storing CGAD-related information shared under this chapter in a permanent database after the underlying analysis is completed.
(5) A provision requiring prompt notice to the department and to the insurer or insurance group regarding a subpoena, request for disclosure or request for production of the insurer or insurance group's CGAD-related information in the possession of the NAIC or third-party consultant.
(6) A requirement to consent to intervention by an insurer or insurance group in a judicial or an administrative action in which the NAIC or third-party consultant may be required to disclose CGAD-related information or other confidential information about the insurer or insurance group that was shared under this chapter.
(e) No delegation.--The sharing of information by the department under this chapter does not constitute a delegation of regulatory authority or rulemaking. The department shall be solely responsible for the administration, execution and enforcement of this chapter.
(f) No waiver of privilege or confidentiality.--The sharing of CGAD-related information with, to or by the department as authorized by this chapter does not constitute a waiver of any applicable privilege or claim of confidentiality.
(g) Information with third parties.--CGAD-related information in the possession or control of the NAIC or a third-party consultant as provided under this chapter shall:
(1) be confidential and privileged;
(2) not be subject to the Right-to-Know Law;
(3) not be subject to subpoena; and
(4) not be subject to discovery or admissible as evidence in a private civil action.
Cross References. Section 3907 is referred to in section 3911 of this title.
