KRS 304.6-132: Treatment of confidential information.

(1) For purposes of this section:

(a) "Confidential information" means:

1. A memorandum in support of an opinion, submitted pursuant to KRS

304.6-171, and any other documents, materials, and other information,

including but not limited to all working papers an d copies created,

produced, obtained by, or disclosed to the commissioner or any other

person in connection with the memorandum;

2. All documents, materials, and other information, including but not

limited to all working papers and copies created, produce d, obtained by,

or disclosed to the commissioner or any other person in the course of an

examination made under KRS 304.6 -143(6); except that if an

examination report or other material prepared in connection with an

examination made under KRS 304.2 -250 is not held as private and

confidential, an examination report or other material prepared in

connection with an examination under KRS 304.6 -143(6) shall not be

confidential information to the same extent as if the examination report

or other material had been prepared under KRS 304.2-250;

3. Any reports, documents, materials, and other information developed by

a company in support of, or in connection with an annual certification by

the company under KRS 304.6-151(2)(b) evaluating the effectiveness of

the comp any's internal controls with respect to a principle -based

valuation and any other documents, materials, and other information,

including but not limited to all working papers and copies created,

produced, obtained by, or disclosed to the commissioner or an y other

person in connection with reports, documents, materials, and other

information;

4. Any principle -based valuation report developed under KRS 304.6 -

151(2)(c) and any other documents, materials, and other information,

including but not limited to all working papers and copies created,

produced, obtained by, or disclosed to the commissioner or any other

person in connection with the report; and

5. Any documents, materials, data and other information submitted by a

company under KRS 304.6 -133, collective ly referred to as experience

data, and any other documents, materials, data, and other information,

including but not limited to all working papers and copies created or

produced in connection with the experience data, in each case that

includes any potent ial company -identifying or personal identifiable

information that is provided to or obtained by the commissioner, with

any experience data referred to as the experience materials, and any

other documents, materials, data, and other information, including b ut

not limited to all working papers and copies created, produced, obtained

by, or disclosed to the commissioner or any other person in connection

with the experience materials; and

(b) "Regulatory agency," "law enforcement agency," and "NAIC" include, but are

not limited to their employees, agents, or consultants.

(2) (a) Except as provided in this section, a company's confidential information:

1. Shall be confidential by law and privileged; and

2. Shall not be subject to:

a. The Kentucky Open Records Act, KRS 61.872 to 61.884;

b. Subpoena;

c. Discovery; or

d. Admission in evidence in any private civil action, except that the

commissioner is authorized to use the confidential information in

the furtherance of any regulatory or legal action brought against

the company as part of the commissioner's official duties.

(b) Neither the commissioner nor any person who received confidential

information, while acting under the authority of the commissioner, shall be

permitted or required to testify in any private civil action concerning any

confidential information.

(c) In order to assist in the performance of the commissioner's duties, the

commissioner may share confidential information if the recipient agrees, and

has the legal authority to agree, to maintain the confidentiality and privileged

status of the documents, materials, data, and other information in the same

manner and to the same extent as required for the commissioner with:

1. Other state, federal, and international regulatory agencies and with the

NAIC and its affiliates and subsidiaries; and

2. In the case of confidential information, defined in subsection (1)(a)1.

and 4. of this section, the Actuarial Board for Counseling and Discipline

or its successor upon request stating that the confidential information is

required for the purpose of professional disciplinary proceedings and

with state, federal, and international law enforcement officials.

(d) The commissioner may receive documents, materials, data, and other

information, including otherwise confidential and privileged documents,

materials, data, and other information from the NAIC and its affiliates and

subsidiaries, from regulatory or law enforcement officials of other foreign or

domestic jurisdictions, and from the Actu arial Board for Counseling and

Discipline, or its successor, and shall maintain as confidential or privileged

any documents, materials, data, or other information received with notice or

the understanding that it is confidential or privileged under the law s of the

jurisdiction that is the source of the document, material, or other information.

(e) The commissioner may enter into agreements governing sharing and use of

information consistent with this subsection.

(f) No waiver of any applicable privilege or claim of confidentiality of

confidential information shall occur as a result of disclosure to the

commissioner under this section, or as a result of sharing the information as

authorized by paragraph (c) of this subsection.

(g) A privilege established unde r the law of any state or jurisdiction that is

substantially similar to the privilege established under this subsection shall be

available and enforced in any proceeding and in any court of this state.

(3) (a) Notwithstanding subsection (2) of this section , any confidential information

specified in subsection (1)(a)1. and 4. of this section:

1. May be subject to subpoena for the purpose of defending an action

seeking damages from the appointed actuary submitting the related

memorandum in support of an opini on submitted under KRS 304.6-171,

or the principle -based valuation report developed under KRS 304.6 -

151(2)(c), by reason of an action required by KRS 304.6 -130 to 304.6 -

180, or by administrative regulation.

2. May otherwise be released by the commissioner with the written consent

of the company; and

(b) All portions of a memorandum or report shall no longer be confidential if any

portion of a memorandum in support of an opinion, submitted under KRS

304.6-171, or a principle-based valuation report, developed under KRS 304.6-

151(2)(c), is cited by the company in its marketing, is publicly volunteered to

or before a governmental agency, other than a state insurance department, or is

released by the company to the news media.