North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S51 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 51
	3	+	S D
	4	+	SENATE BILL DRS35027-NE-8
	5	+
5	6
6	7
7	8		Short Title: Maintain NAIC Accreditation of DOI.-AB (Public)
8	9		Sponsors: Senators Johnson, Britt, and Settle (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~February 5, 2025~~
11		-	~~S51-v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS35027 -NE-8
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO MAINTAIN NAIC ACCREDITATION OF THE DEPARTMENT OF 2
14	15		INSURANCE BY IMPLEMENTING GROUP CAPITAL CALCULATION AND 3
15	16		LIQUIDITY STRESS TEST REQUIREMENTS AND TO MAKE VARIOUS 4
16	17		CONFORMING CHANGES , AS RECOMMENDED BY THE DEPARTMENT OF 5
17	18		INSURANCE. 6
18	19		The General Assembly of North Carolina enacts: 7
19	20		8
20	21		PART I. IMPLEMENT GROUP CAPITAL CALCULATION AND LIQUIDITY STRESS 9
21	22		TEST REQUIREMENTS FOR INSURANCE HOLDING COMPANY SYSTEMS 10
22	23		SECTION 1. Article 19 of Chapter 58 of the General Statutes is amended by adding 11
23	24		the following new sections to read: 12
24	25		"§ 58-19-26. Group capital calculation. 13
25	26		(a) Reporting Requirement. – The ultimate controlling person of every insurer subject to 14
26	27		registration pursuant to G.S. 58-19-25 shall concurrently file with the registration an annual 15
27	28		group capital calculation report. The report shall be filed with the lead state commissioner. 16
28	29		(b) Exemptions. – The ultimate controlling person of any of the following is exempt from 17
29	30		the filing requirement of subsection (a) of this section: 18
30	31		(1) An insurance holding company system that (i) has only one insurer within its 19
31	32		holding company structure, (ii) only writes insurance business, (iii) is only 20
32	33		licensed in its state of domicile, and (iv) assumes no business from any other 21
33	34		insurer. 22
34	35		(2) An insurance holding company system that is required to perform a group 23
35	36		capital calculation specified by the United States Federal Reserve Board. 24
36	37		When this exemption applies, the lead state commissioner shall request the 25
37	38		calculation from the United States Federal Reserve Board. If the United States 26
38	39		Federal Reserve Board cannot share the calculation with the lead state 27
39	40		commissioner under the terms of any information sharing agreements in 28
40	41		effect, then the insurance holding company system is not exempt from the 29
41	42		group capital calculation filing. 30
42	43		(3) An insurance holding company system whose non-United States group-wide 31
43	44		supervisor is located within a reciprocal jurisdiction that recognizes the United 32
44	45		States state regulatory approach to group supervision and group capital. 33
45	46		(4) An insurance holding company system that meets both of the following 34
46		-	requirements: 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 Senate Bill 51-First Edition
	47	+	requirements: 35
	48	+	FILED SENATE
	49	+	Feb 4, 2025
	50	+	S.B. 51
	51	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRS35027-NE-8
48	53		a. The insurance holding company system provides information to the 1
49	54		lead state commissioner that meets the requirements for accreditation 2
50	55		under the NAIC financial standards and accreditation program. The 3
51	56		insurance holding company may provide this information either 4
52	57		directly or indirectly through its group-wide supervisor. If provided 5
53	58		indirectly through a group-wide supervisor, the supervisor is 6
54	59		responsible for determining whether the information provided is 7
55	60		sufficient to permit the lead state commissioner to comply with the 8
56	61		NAIC group supervision approach, as detailed in the NAIC Financial 9
57	62		Analysis Handbook. 10
58	63		b. The insurance holding company system's non-United States 11
59	64		group-wide supervisor is not in a reciprocal jurisdiction but 12
60	65		nonetheless recognizes the group capital calculation as the worldwide 13
61	66		group capital assessment for United States insurance groups who 14
62	67		operate in that jurisdiction. 15
63	68		(c) Recognition of Group Capital Calculation. – For purposes of subdivision (b)(4) of 16
64	69		this section, a non-United States jurisdiction recognizes the group capital calculation if it satisfies 17
65	70		any of the following criteria: 18
66	71		(1) A competent regulatory authority in the jurisdiction affirms that insurers and 19
67	72		insurance groups whose lead state is accredited by the NAIC under the NAIC 20
68	73		accreditation program shall be subject only to worldwide prudential insurance 21
69	74		group supervision, including worldwide group governance, solvency and 22
70	75		capital, and reporting, as applicable, by that jurisdiction's lead state 23
71	76		commissioner and will not be subject to group supervision, including 24
72	77		worldwide group governance, solvency and capital, and reporting, at the level 25
73	78		of the worldwide parent undertaking of the insurance or reinsurance group by 26
74	79		the non-United States jurisdiction. 27
75	80		(2) A competent regulatory authority in the jurisdiction affirms that information 28
76	81		regarding insurers and their parent, subsidiary, or affiliated entities, if 29
77	82		applicable, shall be provided to the lead state commissioner in accordance 30
78	83		with an information sharing agreement in the form of a memorandum of 31
79	84		understanding or similar document. Acceptable information sharing 32
80	85		agreements include the International Association of Insurance Supervisors 33
81	86		Multilateral Memorandum of Understanding or other multilateral memoranda 34
82	87		of understanding coordinated by the NAIC. The jurisdiction does not satisfy 35
83	88		this criteria if the lead state commissioner determines, in consultation with the 36
84	89		NAIC, that the requirements of the information sharing agreements are no 37
85	90		longer in force. 38
86	91		(3) If no United States insurance groups operate in the non-United States 39
87	92		jurisdiction, that non-United States jurisdiction notifies the lead state 40
88	93		commissioner and the International Association of Insurance Supervisors in 41
89	94		writing that the jurisdiction considers the group capital calculation an 42
90	95		acceptable international capital standard. 43
91	96		(d) Limitation of Exemptions. – Notwithstanding subsection (b) of this section, the lead 44
92	97		state commissioner shall require filing of the group capital calculation for United States 45
93	98		operations of any non-United States based insurance holding company system if the lead state 46
94	99		commissioner determines that the filing is required for (i) prudential oversight and solvency 47
95	100		monitoring purposes or (ii) ensuring the competitiveness of the insurance marketplace. 48
96	101		(e) Consideration and Correction of NAIC Materials. – The lead state commissioner shall 49
97	102		consider any relevant lists, reports, and recommendations published by the NAIC in determining 50
98	103		whether the exceptions of subdivision (b)(4) of this section apply to an insurer. If the lead state 51 General Assembly Of North Carolina Session 2025
99		-	~~Senate Bill 51-First Edition~~ Page 3
	104	+	DRS35027-NE-8 Page 3
100	105		commissioner's determination differs from relevant materials published by the NAIC, the lead 1
101	106		state commissioner shall provide the NAIC with written justification for the difference supported 2
102	107		by documentation. If published NAIC materials indicate that a non-United States jurisdiction 3
103	108		recognizes the group capital calculation and the lead state commissioner determines that the 4
104	109		jurisdiction no longer meets the requirements of subsection (c) of this section, the lead state 5
105	110		commissioner may recommend a correction of the materials to the NAIC. 6
106	111		(f) Discretionary Exemptions. – The lead state commissioner may either (i) exempt the 7
107	112		ultimate controlling person of an insurance holding company system from the filing requirement 8
108	113		of subsection (a) of this section or (ii) authorize the ultimate controlling person of an insurance 9
109	114		holding company to file a limited group capital filing in lieu of the filing requirement of 10
110	115		subsection (a) of this section if all of the following apply: 11
111	116		(1) The insurance holding company system has annual direct written and 12
112	117		unaffiliated assumed premium, including international direct and assumed 13
113	118		premium, but excluding premiums reinsured with the Federal Crop Insurance 14
114	119		Corporation and Federal Flood Program, of less than one billion dollars 15
115	120		($1,000,000,000). 16
116	121		(2) The insurance holding company system does not include insurers within its 17
117	122		holding company structure that are domiciled outside of the United States or 18
118	123		one of its territories. 19
119	124		(3) The insurance holding company system does not include banking, depository, 20
120	125		or other financial entity that is subject to an identified regulatory capital 21
121	126		framework within its holding company structure. 22
122	127		(4) The insurance holding company system attests that there are no material 23
123	128		changes in transactions between insurers and non-insurers in the group that 24
124	129		have occurred since the last filing of an annual group calculation report, if any. 25
125	130		(5) The non-insurers within the insurance holding company system do not pose a 26
126	131		material financial risk to the insurer's ability to honor policyholder 27
127	132		obligations. 28
128	133		(g) Resumption of Filings. – If the lead state commissioner determines that an insurance 29
129	134		holding company system exempted from the filing requirements of subsection (a) of this section 30
130	135		no longer meets the requirements for an exemption, the insurance holding company system shall 31
131	136		file the group capital calculation at the next annual filing date unless given an extension by the 32
132	137		lead state commissioner based on reasonable grounds shown. If the lead state commissioner, 33
133	138		pursuant to subsection (f) of this section, either grants a discretionary exemption or authorizes a 34
134	139		limited group capital filing, the lead state commissioner may require the ultimate controlling 35
135	140		person of that insurance holding company system to file an annual group calculation at any time 36
136	141		if all of the following apply: 37
137	142		(1) Any insurer within the insurance holding company system is in a risk-based 38
138	143		capital action level event as set forth in Article 12 of this Chapter or a similar 39
139	144		standard for a non-United States insurer. 40
140	145		(2) Any insurer within the insurance holding company system meets one or more 41
141	146		of the standards of an insurer deemed to be in hazardous financial condition 42
142	147		pursuant to the criteria provided in G.S. 58-30-60. 43
143	148		(3) Any insurer within the insurance holding company system otherwise exhibits 44
144	149		qualities of a troubled insurer as determined by the lead state commissioner 45
145	150		based on unique circumstances, including the type and volume of business 46
146	151		written, ownership and organizational structure, federal agency requests, and 47
147	152		international supervisor requests. 48
148	153		"§ 58-19-27. Liquidity stress test. 49
149	154		(a) Participation and Reporting Requirement. – The ultimate controlling person of every 50
150	155		insurer subject to registration pursuant to G.S. 58-19-25 shall be included in the NAIC liquidity 51 General Assembly Of North Carolina Session 2025
151		-	Page 4 ~~Senate Bill 51-First Edition~~
	156	+	Page 4 DRS35027-NE-8
152	157		stress test framework and file a report with the lead state commissioner detailing the results of a 1
153	158		specific year's liquidity stress test if either of the following applies: 2
154	159		(1) The insurer meets the scope criteria of that data year's NAIC liquidity stress 3
155	160		test framework. 4
156	161		(2) The insurer did not meet the scope criteria of that data year's liquidity stress 5
157	162		test framework, but the lead state commissioner, in consultation with the 6
158	163		NAIC Financial Stability Task Force or its successor, nonetheless determines 7
159	164		the insurer should be included in the NAIC liquidity stress test framework for 8
160	165		that data year. In making this determination, the lead state commissioner shall 9
161	166		attempt to avoid the frequent inclusion or exclusion of insurers. 10
162	167		(b) The performance of, and filing of the results from, a specific year's liquidity stress 11
163	168		test shall comply with (i) the NAIC liquidity stress test framework's instructions and reporting 12
164	169		templates for that year and (ii) all lead state commissioners' directives issued in consultation with 13
165	170		the NAIC Financial Stability Task Force or its successor. 14
166	171		(c) Exemptions. – The lead state commissioner may, in consultation with the NAIC 15
167	172		Financial Stability Task Force or its successor, exempt an ultimate controlling person from the 16
168	173		reporting requirements of subsection (a) of this section. The lead state commissioner shall 17
169	174		consider the intent of regulators to avoid having insurers scoped in and out of the NAIC liquidity 18
170	175		stress test framework on a frequent basis when making this determination. 19
171	176		"§ 58-19-28. Dissemination prohibited. 20
172	177		(a) Unless otherwise provided by law, the making, publishing, disseminating, circulating, 21
173	178		or placing before the public, or causing directly or indirectly to be made, published, disseminated, 22
174	179		circulated, or placed before the public in a newspaper, magazine, or other publication, or in the 23
175	180		form of a notice, circular, pamphlet, letter, or poster, or over any radio or television station or 24
176	181		any electronic means of communication available to the public, or in any other way as an 25
177	182		advertisement, announcement, or statement containing a representation or statement with regard 26
178	183		to the group capital calculation, group capital ratio, the liquidity stress test results, or supporting 27
179	184		disclosures for the liquidity stress test of any insurer or any insurer group, or of any component 28
180	185		derived in the calculation by any insurer, broker, or other person engaged in any manner in the 29
181	186		insurance business is prohibited. 30
182	187		(b) Notwithstanding subsection (a) of this section, if any materially false statement with 31
183	188		respect to the group capital calculation, resulting group capital ratio, an inappropriate comparison 32
184	189		of any amount to an insurer's or insurance group's group capital calculation or resulting group 33
185	190		capital ratio, liquidity stress test result, supporting disclosures for the liquidity stress test, or an 34
186	191		inappropriate comparison of any amount to an insurer's or insurance group's liquidity stress test 35
187	192		result, or supporting disclosures is published in any written publication and the insurer is able to 36
188	193		demonstrate to the Commissioner with substantial proof the falsity or inappropriateness of the 37
189	194		statement, then the insurer may publish announcements in a written publication if the sole 38
190	195		purpose of the announcement is to rebut the materially false or inappropriate statement." 39
191	196		40
192	197		PART II. CONFORMING CHANGES 41
193	198		SECTION 2.(a) G.S. 58-19-5 reads as rewritten: 42
194	199		"§ 58-19-5. Definitions. 43
195	200		As used in this Article, unless the context requires otherwise, the following terms have the 44
196	201		following meanings: 45
197	202		… 46
198	203		(10a) Group capital calculation. – A report, completed in accordance with the group 47
199	204		capital calculation instructions as adopted and amended by the NAIC, used to 48
200	205		evaluate the capital adequacy of insurance holding company systems that 49
201	206		includes information on the sources of capital within the system, where that 50
202	207		capital is located, and sources of risk. 51 General Assembly Of North Carolina Session 2025
203		-	~~Senate Bill 51-First Edition~~ Page 5
	208	+	DRS35027-NE-8 Page 5
204	209		(10a)(10b) Group-wide supervisor. – The regulatory official authorized to engage in 1
205	210		conducting and coordinating group-wide supervision activities who is 2
206	211		determined or acknowledged by the Commissioner under G.S. 58-19-38 to 3
207	212		have sufficient significant contacts with the internationally active insurance 4
208	213		group. 5
209	214		… 6
210	215		(12b) Lead state commissioner. – The person responsible for regulating the 7
211	216		insurance holding company system as determined by the Commissioner in 8
212	217		accordance with the procedures within the Financial Analysis Handbook 9
213	218		adopted by the NAIC. 10
214	219		(12c) Limited group capital filing. – A simplified version of the group capital 11
215	220		calculation, completed in accordance with procedures adopted by the NAIC, 12
216	221		where an insurance holding company system only provides a limited amount 13
217	222		of data, allowing them to avoid the filing of a full group capital calculation. 14
218	223		(12d) Liquidity stress test. – A process simulating extreme market conditions to 15
219	224		assess an entity's ability to maintain sufficient liquidity in response to adverse 16
220	225		events. 17
221	226		(12e) NAIC. – The National Association of Insurance Commissioners. 18
222	227		(12f) NAIC liquidity stress test framework. – A publication, adopted and amended 19
223	228		by the NAIC in accordance with procedures adopted by the NAIC, which 20
224	229		includes a history of the NAIC's development of regulatory liquidity stress 21
225	230		testing, the scope criteria applicable for a specific data year, and the liquidity 22
226	231		stress test instructions and reporting templates for a specific data year. 23
227	232		… 24
228	233		(13a) Reciprocal jurisdiction. – As defined in G.S. 58-7-21(b)(4b). 25
229	234		(13b) Scope criteria. – Designated exposure bases, detailed in the NAIC liquidity 26
230	235		stress test framework along with minimum magnitudes thereof for the 27
231	236		specified data year, used to establish a preliminary list of insurers included in 28
232	237		the NAIC liquidity stress test framework for that data year. 29
233	238		…." 30
234	239		SECTION 2.(b) G.S. 58-19-15 reads as rewritten: 31
235	240		"§ 58-19-15. Acquisition of control of or merger with domestic insurer. 32
236	241		… 33
237	242		(b) The statement to be filed with the Commissioner under subsection (a) of this section 34
238	243		shall be furnished on a Form A as prescribed by the Commissioner, made under oath or 35
239	244		affirmation, and shall contain the following information: 36
240	245		… 37
241	246		(11a) An agreement by the person required to file the statement referred to in 38
242	247		subsection (a) of this section that it will provide the annual report, as specified 39
243	248		in G.S. 58-19-25, G.S. 58-19-25(l), for so long as control exists. 40
244	249		…." 41
245	250		SECTION 2.(c) G.S. 58-19-25 reads as rewritten: 42
246	251		"§ 58-19-25. Registration of insurers.insurers; disclaimer of affiliation; enterprise risk 43
247	252		filings. 44
248	253		… 45
249	254		(c) No information need be disclosed on the registration statement filed pursuant to 46
250	255		subsection (b) of this section if such information is not material for the purposes of this section. 47
251	256		Unless the Commissioner by rule or order provides otherwise, all material. For purposes of this 48
252	257		section, all sales, purchases, exchanges, loans or extensions of credit, investments, or guarantees 49
253	258		involving one-half of one percent ( 1//s2%) (0.5%) or less of an insurer's admitted assets as of 50
254	259		the preceding December 31 are not material for the purposes of this section.material, unless the 51 General Assembly Of North Carolina Session 2025
255		-	Page 6 ~~Senate Bill 51-First Edition~~
	260	+	Page 6 DRS35027-NE-8
256	261		Commissioner by rule or order provides otherwise. This subsection does not apply to the 1
257	262		reporting requirements of G.S. 58-19-26 and G.S. 58-19-27. 2
258	263		… 3
259	264		(l) Effective January 1, 2016, the ultimate controlling person of every insurer subject to 4
260	265		registration shall also file an annual enterprise risk report on Form F as prescribed by the 5
261	266		Commissioner. The report shall, to the best of the ultimate controlling person's knowledge and 6
262	267		belief, identify the material risks within the insurance holding company system that could pose 7
263	268		enterprise risk to the insurer. The report shall be filed with the lead state commissioner of the 8
264	269		insurance holding company system as determined by the procedures within the Financial 9
265	270		Analysis Handbook adopted by the NAIC.commissioner." 10
266	271		SECTION 2.(d) G.S. 58-19-40 reads as rewritten: 11
267	272		"§ 58-19-40. Confidential treatment. 12
268	273		(a) Documents, materials, or other information in the possession or control of the 13
269	274		Department that are obtained by or disclosed to the Commissioner or any other person in the 14
270	275		course of an examination or investigation made pursuant to G.S. 58-19-35, and all information 15
271	276		reported or provided to the Department pursuant to subdivisions (11a) and (11b) of 16
272	277		G.S. 58-19-15(b), G.S. 58-19-25, G.S. 58-19-30 and G.S. 58-19-38 are recognized by this State 17
273	278		as being proprietary and to contain trade secrets, and shall be confidential by law and privileged, 18
274	279		shall not be considered a public record under either G.S. 58-2-100 or Chapter 132 of the General 19
275	280		Statutes, shall not be subject to subpoena, and shall not be subject to discovery or admissible in 20
276	281		evidence in any private civil action. However, the Commissioner is authorized to use the 21
277	282		documents, materials, or other information in the furtherance of any regulatory or legal action 22
278	283		brought as a part of the Commissioner's official duties. The Commissioner shall not otherwise 23
279	284		make the documents, materials, or other information public without the prior written consent of 24
280	285		the insurer to which it pertains unless the Commissioner, after giving the insurer and its affiliates 25
281	286		who would be affected thereby notice and opportunity to be heard, determines that the interest of 26
282	287		policyholders, shareholders, or the public will be served by the publication thereof, in which 27
283	288		event the Commissioner may publish all or any part of the information in such manner as may 28
284	289		be deemed appropriate. 29
285	290		(a1) With respect to information provided to the Department pursuant to G.S. 58-19-26 30
286	291		and G.S. 58-19-27, the Commissioner shall: 31
287	292		(1) Maintain the confidentiality of the group capital calculation and group capital 32
288	293		ratio produced within the calculation and any group capital information 33
289	294		received from an insurance holding company system supervised by the 34
290	295		Federal Reserve Board or any United States group-wide supervisor. 35
291	296		(2) Maintain the confidentiality of the liquidity stress test results and supporting 36
292	297		disclosures and any liquidity stress test information received from an 37
293	298		insurance holding company system supervised by the Federal Reserve Board 38
294	299		and non-United States group-wide supervisors. 39
295	300		… 40
296	301		(c) In order to assist in the performance of the duties imposed by this Article, the 41
297	302		Commissioner: 42
298	303		(1) May share documents, materials, or other information, including the 43
299	304		confidential and privileged documents, materials, or information subject to 44
300	305		subsection (a) of this section, including proprietary and trade secret documents 45
301	306		and materials, with other all of the following: 46
302	307		a. Other state, federal, and international regulatory agencies, with the 47
303	308		NAIC and its affiliates and subsidiaries, and with state, agencies. 48
304	309		b. The NAIC. 49
305	310		c. Any third-party consultants designated by the Commissioner. 50 General Assembly Of North Carolina Session 2025
306		-	~~Senate Bill 51-First Edition~~ Page 7
	311	+	DRS35027-NE-8 Page 7
307	312		d. State, federal, and international law enforcement authorities, including 1
308	313		members of any supervisory college described in G.S. 58-19-37, 2
309	314		provided that the recipient agrees in writing to maintain the 3
310	315		confidentiality and privileged status of the document, material, or 4
311	316		other information and has verified in writing the legal authority to 5
312	317		maintain confidentiality. 6
313	318		(2) Notwithstanding subdivision (1) of this subsection, may only share 7
314	319		confidential and privileged documents, material, or information reported 8
315	320		pursuant to G.S. 58-19-25 G.S. 58-19-25(l) with Commissioners of states 9
316	321		having statutes or regulations substantially similar to subsection (a) of this 10
317	322		section and who have agreed in writing not to disclose such information. 11
318	323		(3) May receive documents, materials, or information, including otherwise 12
319	324		confidential and privileged documents, materials, or information information, 13
320	325		including proprietary and trade-secret information, from the NAIC and its 14
321	326		affiliates and subsidiaries and from regulatory and law enforcement officials 15
322	327		of other foreign or domestic jurisdictions, and shall maintain as confidential 16
323	328		or privileged any document, material, or information received with notice or 17
324	329		the understanding that it is confidential or privileged under the laws of the 18
325	330		jurisdiction that is the source of the document, material, or information. 19
326	331		(4) Shall enter into written agreements with the NAIC and any third-party 20
327	332		consultant designated by the Commissioner governing sharing and use of 21
328	333		information provided pursuant to this Article consistent with this subsection 22
329	334		that shall:shall do all of the following: 23
330	335		a. Require a recipient to maintain the confidentiality and privileged 24
331	336		status of any documents, materials, or information. Specify procedures 25
332	337		and protocols regarding the confidentiality and security of information 26
333	338		shared with the NAIC and its affiliates and subsidiaries or a third-party 27
334	339		consultant designated by the Commissioner pursuant to this Article, 28
335	340		including procedures and protocols for sharing by the NAIC with other 29
336	341		state, federal, or international regulators;regulators. The agreement 30
337	342		shall require a recipient to verify in writing that the recipient has 31
338	343		reviewed the legal authority supporting any confidentiality or 32
339	344		privilege. 33
340	345		b. Specify that ownership of information shared with the NAIC and its 34
341	346		affiliates and subsidiaries or a third-party consultant pursuant to this 35
342	347		Article remains with the Commissioner, and the NAIC's use of the 36
343	348		information by the NAIC or third-party consultant designated by the 37
344	349		Commissioner is subject to the direction of the 38
345	350		Commissioner;Commissioner. 39
346	351		c. Prohibit the NAIC or third-party consultant designated by the 40
347	352		Commissioner from storing the information shared pursuant to this 41
348	353		section in a permanent database after the underlying analysis is 42
349	354		completed. This sub-subdivision does not apply to documents, 43
350	355		material, or information reported pursuant to G.S. 58-19-27. 44
351	356		c.d. Require prompt notice to be given to an insurer whose confidential 45
352	357		information in the possession of the NAIC or a third-party consultant 46
353	358		designated by the Commissioner pursuant to this Article is subject to 47
354	359		a request or subpoena to the NAIC for disclosure or production; 48
355	360		andproduction. 49
356	361		d.e. Require the NAIC and its affiliates and subsidiaries or a third-party 50
357	362		consultant designated by the Commissioner to consent to intervention 51 General Assembly Of North Carolina Session 2025
358		-	Page 8 ~~Senate Bill 51-First Edition~~
	363	+	Page 8 DRS35027-NE-8
359	364		by an insurer in any judicial or administrative action in which the 1
360	365		NAIC and its affiliates and subsidiaries or a third-party consultant 2
361	366		designated by the Commissioner may be required to disclose 3
362	367		confidential information about the insurer shared with the NAIC and 4
363	368		its affiliates and subsidiaries or a third-party consultant designated by 5
364	369		the Commissioner pursuant to Article 19 of this Chapter. 6
365	370		f. Require the Commissioner to notify an insurer when documents, 7
366	371		materials, or information confidential or privileged to that insurer are 8
367	372		shared with a third-party consultant. The notification shall include the 9
368	373		identity of the third-party consultant. This sub-subdivision only 10
369	374		applies to documents, materials, or information shared pursuant to 11
370	375		G.S. 58-19-27. 12
371	376		… 13
372	377		(f) Documents, materials, or other information in the possession or control of the NAIC 14
373	378		or a third-party consultant designated by the Commissioner pursuant to a requirement of this 15
374	379		Article shall be confidential by law and privileged, shall not be considered a public record under 16
375	380		G.S. 58-2-100 or Chapter 132 of the General Statutes, shall not be subject to subpoena, and shall 17
376	381		not be subject to discovery or admissible in evidence in any private civil action." 18
377	382		19
378	383		PART III. EFFECTIVE DATE 20
379	384		SECTION 3. This act becomes effective January 1, 2026. 21