                                 CODE OF VIRGINIA

NAIC AND THIRD-PARTY CONSULTANTS (§ 38.2-1334.15)

A. The Commission may retain, at the insurer&#8217;s expense, third-party
consultants, including attorneys, actuaries, accountants, and other experts not
otherwise a part of the Commission&#8217;s staff as may be reasonably necessary
to assist the Commission in reviewing the CGAD and related information or the
insurer&#8217;s compliance with this article.

B. Any persons retained under subsection A shall be under the direction and
control of the Commission and shall act in a purely advisory capacity.

C. The NAIC and third-party consultants shall be subject to the same
confidentiality standards and requirements as the Commission.

D. As part of the retention process, a third-party consultant shall verify to
the Commission, with notice to the insurer, that it is free of a conflict of
interest and that it has internal procedures in place to monitor compliance with
a conflict and to comply with the confidentiality standards and requirements of
this article.

E. A written agreement with the NAIC or a third-party consultant, or both,
governing sharing and use of information provided pursuant to this article shall
contain the following provisions and expressly require the written consent of
the insurer prior to making public information provided under this article:

   1. Specific procedures and protocols for maintaining the confidentiality and
   security of CGAD-related information shared with the NAIC or a third-party
   consultant pursuant to this article;

   2. Procedures and protocols for sharing by the NAIC only with other state
   regulators from states in which the insurance group has domiciled insurers.
   The agreement shall provide that the recipient agrees in writing to maintain
   the confidentiality and privileged status of the CGAD-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 CGAD-related information
   shared with the NAIC or a third-party consultant remains with the Commission
   and the NAIC&#8217;s or third-party consultant&#8217;s use of the information
   is subject to the direction of the Commission;

   4. A provision that prohibits the NAIC or a third-party consultant from
   storing the information shared pursuant to this article in a permanent
   database after the underlying analysis is completed;

   5. A provision requiring the NAIC or third-party consultant to provide prompt
   notice to the Commission and to the insurer or insurance group regarding any
   subpoena, request for disclosure, or request for production of the
   insurer&#8217;s CGAD-related information; and

   6. A requirement that the NAIC or a third-party consultant consent to
   intervention by an insurer in any judicial or administrative action in which
   the NAIC or a third-party consultant may be required to disclose confidential
   information about the insurer shared with the NAIC or a third-party consultant
   pursuant to this article.

HISTORY: 2017, c. 643.