§ 58-56-16. Records to be kept. - North Carolina Statutes

§58‑56‑16.  Records to be kept.

(a)        Every TPA shallmaintain and make available to the insurer complete books and records of alltransactions performed on behalf of the insurer.  The books and records shallbe maintained in accordance with prudent standards of insurance record keepingand must be maintained for a period of at least five years after the date oftheir creation.

(b)        The Commissionershall have access to books and records maintained by a TPA for the purposes ofexamination, audit, and inspection.  The Commissioner shall keep confidentialany trade secrets contained in those books and records, including the identityand addresses of policyholders and certificate holders, except that theCommissioner may use the information in any judicial or administrativeproceeding instituted against the TPA.

(c)        The insurer shallown the records generated by the TPA pertaining to the insurer, but the TPAshall retain the right to continuing access to books and records to permit theTPA to fulfill all of its contractual obligations to insured parties,claimants, and the insurer.

(d)        In the event theinsurer and the TPA cancel their agreement, notwithstanding the provisions ofsubsection (a) of this section, the TPA may, by written agreement with theinsurer, transfer all records to a new TPA rather than retain them for fiveyears.  In this case, the new TPA shall acknowledge, in writing, that it isresponsible for retaining the records of the prior TPA as required insubsection (a) of this section. (1991, c. 627, s. 1.)