SB-0901, As Passed Senate, December 2, 2009

SUBSTITUTE FOR

SENATE BILL NO. 901

     A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

(MCL 500.100 to 500.8302) by adding section 814a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 814a. (1) Every property and casualty insurer doing

business in this state, unless exempted by the commissioner, shall

annually file with the commissioner the opinion of an appointed

actuary which shall be entitled statement of actuarial opinion.

This statement shall be filed pursuant to the same instructions

issued by the commissioner for the filing of annual statements.

     (2) Every property and casualty insurer domiciled in this

state that is required to file a statement of actuarial opinion

under subsection (1) shall annually file with the commissioner an

actuarial opinion summary, written by the insurer's appointed

actuary. This actuarial opinion summary shall be filed pursuant to

the same instructions issued by the commissioner for the filing of

annual statements and shall be considered as a document supporting

the statement of actuarial opinion required in subsection (1).

     (3) A property and casualty insurer not domiciled in this

state that is required to file a statement of actuarial opinion

under subsection (1) shall provide an actuarial opinion summary

described in subsection (2) upon the commissioner's request.

     (4) An actuarial report and underlying workpapers shall be

prepared to support each statement of actuarial opinion. If the

property and casualty insurer fails to provide this actuarial

report or workpapers at the commissioner's request, the

commissioner may engage a qualified actuary at the expense of the

insurer to review the statement of actuarial opinion and the basis

for the opinion and prepare the actuarial report or workpapers.

     (5) The statement of actuarial opinion shall be filed with the

annual statement in accordance with section 438 and shall be

treated as a public document.

     (6) Documents, materials, or other information in the

possession or control of the office of financial and insurance

regulation that are considered an actuarial report, workpapers, or

actuarial opinion summary provided in support of the statement of

actuarial opinion, and any other material provided by the insurer

to the commissioner in connection with the actuarial report,

workpapers, or actuarial opinion summary, is confidential and

privileged and is not subject to the freedom of information act,

1976 PA 442, MCL 15.231 to 15.246, subpoena, or to discovery and is

not admissible in evidence in any private civil action. This

subsection does not do either of the following:

     (a) Limit the commissioner's authority to release the

documents for the purpose of professional disciplinary proceedings

if the commissioner is satisfied that the confidentiality of the

documents will be preserved.

     (b) Limit the commissioner's authority to use the documents,

materials, or other information in furtherance of any regulatory or

legal action brought as part of the commissioner's official duties.

     (7) Neither the commissioner nor any person who received

documents, materials, or other information while acting under the

commissioner's authority shall be permitted or required to testify

in any private civil action concerning any confidential documents,

materials, or information subject to subsection (6).

     (8) In order to assist in the performance of the

commissioner's duties, the commissioner may do any of the

following:

     (a) Share documents, materials, or other information,

including the confidential and privileged documents, materials, or

information subject to subsection (6) with any other state,

federal, or international regulatory agencies, with the national

association of insurance commissioners and its affiliates and

subsidiaries, and with state, federal, and international law

enforcement authorities, provided that the recipient agrees to

maintain the confidentiality and privileged status of the document,

material, or other information and has the legal authority to

maintain confidentiality.

     (b) Receive documents, materials, or information, including

otherwise confidential and privileged documents, materials, or

information, from the national association of insurance

commissioners and its affiliates and subsidiaries, and from

regulatory and law enforcement officials of other foreign or

domestic jurisdictions, and shall maintain as confidential or

privileged any document, material, or information received with

notice or the understanding that it is confidential or privileged

under the laws of the jurisdiction that is the source of the

document, material, or information.

     (9) Any applicable privilege or claim of confidentiality is

not waived by the disclosing or sharing of documents, materials, or

information as permitted by this section.

     (10) For purposes of this section, the Michigan automobile

insurance placement facility created under chapter 33 is not a

property and casualty insurer.

     Enacting section 1. This amendatory act takes effect January

1, 2010.