§ 27-2.4-16 - Notification to insurance commission of termination. - Rhode Island Statutes

SECTION 27-2.4-16

   § 27-2.4-16  Notification to insurancecommission of termination. – (a) Termination for cause. An insurer or authorized representative ofthe insurer that terminates the employment contract or other insurance businessrelationship with an insurance producer shall notify the insurance commissionerwithin thirty (30) days following the effective date of the termination, usinga format prescribed by the insurance commissioner, if the reason fortermination is one of the reasons set forth in § 27-2.4-14 or the insurerhas knowledge the insurance producer was found by a court, government body, orself-regulatory organization authorized by law to have engaged in any of theactivities in § 27-2.4-14. Upon the written request of the insurancecommissioner, the insurer shall provide additional information, documents,records or other data pertaining to the termination or activity of theinsurance producer.

   (b) Termination without cause. An insurer orauthorized representative of the insurer that terminates the employment orcontract with an insurance producer for any reason not set forth in §27-2.4-14 shall notify the insurance commissioner within thirty (30) daysfollowing the effective date of the termination, using a format prescribed bythe insurance commissioner. Upon written request of the insurance commissioner,the insurer shall provide additional information, documents, records or otherdata pertaining to the termination.

   (c) Ongoing notification requirement. The insurer orthe authorized representative of the insurer shall promptly notify theinsurance commissioner in a format acceptable to the insurance commissioner if,upon further review or investigation, the insurer discovers additionalinformation that would have been reportable to the insurance commissioner inaccordance with subsection (a) of this section had the insurer then known ofits existence.

   (1) Within fifteen (15) days

   (2) Within thirty (30) days after the insurance producer hasreceived the original or additional notification, the insurance producer mayfile written comments concerning the substance of the notification with theinsurance commissioner. The insurance producer shall, by the same means,simultaneously send a copy of the comments to the reporting insurer, and thecomments shall become a part of the insurance commissioner's file and accompanyevery copy of a report distributed or disclosed for any reason about theinsurance producer as permitted under subsection (f) of this section.

   (e) Immunities. (1)  In the absence ofactual malice, an insurer, the authorized representative of the insurer, aninsurance producer, the insurance commissioner, or an organization of which theinsurance commissioner is a member and that compiles the information and makesit available to other insurance commissioners or regulatory or law enforcementagencies shall not be subject to civil liability, except as provided in thissection, and a civil cause of action of any nature shall not arise againstthese entities or their respective agents or employees, except as provided inthis section, as a result of any statement or information required by orprovided pursuant to this section or any information relating to any statementthat may be requested in writing by the insurance commissioner, from an insureror insurance producer; or a statement by a terminating insurer or insuranceproducer to an insurer or insurance producer limited solely and exclusively towhether a termination for cause under subsection (a) of this section wasreported to the insurance commissioner, provided that the propriety of anytermination for cause under subsection (a) of this section is certified inwriting by an officer or authorized representative of the insurer or insuranceproducer terminating the relationship.

   (2) In any action brought against a person that may haveimmunity under this chapter for making any statement required by this sectionor providing any information relating to any statement that may be requested bythe insurance commissioner, the party bringing the action shall pleadspecifically in any allegation that subdivision (e)(1) of this section does notapply because the person making the statement or providing the information didso with actual malice.

   (3) This chapter shall not abrogate or modify any existingstatutory or common law privileges or immunities.

   (f) Confidentiality. (1)  Any documents,materials or other information in the control or possession of the departmentthat is furnished by an insurer, insurance producer or an employee or agent ofthe insurer or insurance producer acting on behalf of the insurer or insuranceproducer, or obtained by the insurance commissioner in an investigationpursuant to this section, shall be confidential by law and privileged, shallnot be subject to chapter 2 of title 38, shall not be subject to subpoena, andshall not be subject to discovery or admissible in evidence in any privatecivil action. The insurance commissioner is authorized to use the documents,materials or other information in the furtherance of any regulatory or legalaction brought as a part of the insurance commissioner's duties.

   (2) Neither the insurance commissioner nor any person whoreceived documents, materials or other information while acting under theauthority of the insurance commissioner shall be permitted or required totestify in any private civil action concerning any confidential documents,materials, or information subject to this chapter.

   (3) In order to assist in the performance of the insurancecommissioner's duties under this chapter, the insurance commissioner:

   (i) May share documents, materials or other information,including the confidential and privileged documents, materials or informationsubject to this chapter, with other state, federal, and internationalregulatory agencies, with the NAIC, its affiliates or subsidiaries, and withstate, federal, and international law enforcement authorities, provided thatthe recipient agrees to maintain the confidentiality and privileged status ofthe document, material or other information;

   (ii) May receive documents, materials or information,including confidential and privileged documents, materials or information, fromthe NAIC, its affiliates or subsidiaries and from regulatory and lawenforcement officials of other foreign or domestic jurisdictions, and shallmaintain as confidential or privileged any document, material or informationreceived with notice or the understanding that it is confidential or privilegedunder the laws of the jurisdiction that is the source of the document, materialor information;

   (iii) May enter into agreements governing sharing and use ofinformation consistent with this subsection;

   (iv) No waiver of any applicable privilege or claim ofconfidentiality in the documents, materials, or information shall occur as aresult of disclosure to the commissioner under this section or as a result ofsharing as authorized in this chapter;

   (v) Nothing in this chapter shall prohibit the insurancecommissioner from releasing final, adjudicated actions including for causeterminations that are open to public inspection pursuant to chapter 2 of title38 to a database or other clearinghouse service maintained by the NAIC, itsaffiliates or subsidiaries; and

   (vi) If the department releases to an unauthorized thirdparty any documents, materials or other information provided to the departmentpursuant to this section, then the department shall be subject to a fine not toexceed one thousand dollars ($1,000) after a hearing on this violation broughtin the Superior Court.

   (g) Penalties for Failing to Report. An insurer, theauthorized representative of the insurer, or insurance producer that fails toreport as required under the provisions of this section or that is found tohave reported with actual malice by a court of competent jurisdiction may,after notice and hearing, have its license or certificate of authoritysuspended or revoked and may be fined in accordance with § 42-14-16.