{"data":{"id":"us-ky/krs-304.37-050","jurisdiction":"us-ky","citation":"KRS 304.37-050","heading":"Confidential treatment of information obtained by commissioner --","body":"Sharing and use of information.\n(1) (a) Subject to paragraph (b) of this subsection and subsection (3) of this section,\nall documents, materials, or other information in  the possession or control of\nthe department that are obtained by or disclosed to the commissioner or any\nother person in the course of an examination, analysis, or investigation made\nunder KRS 304.37 -040 and all information reported or provided to the\ndepartment under KRS 304.37-020, 304.37-030, and 304.37-160 shall:\n1. Be confidential by law and privileged;\n2. Not be subject to:\na. The Kentucky Open Records Act, KRS 61.872 to 61.884;\nb Subpoena; or\nc. Discovery or admission into evidence in any private ci vil action;\nand\n3. Be recognized as being proprietary and containing trade secrets.\n(b) The commissioner may use the documents, materials, or other information in\nthe furtherance of any regulatory or legal action brought as a part of the\ncommissioner's official duties.\n(c) The commissioner shall not otherwise make the documents, materials, or\nother information public without the prior written consent of the insurer to\nwhich it pertains unless the commissioner, after giving the insurer and its\naffiliates who would be affected thereby notice and opportunity to be heard,\ndetermines that the interests of policyholders, shareholders, or the public will\nbe served by the publication thereof, in which event the commissioner may\npublish all or any part thereof in suc h manner as the commissioner may deem\nappropriate.\n(d) For purposes of the information reported and provided to the department\npursuant to KRS 304.37 -020, 304.37 -030, 304.37 -040, and 304.37 -160, the\ncommissioner shall maintain the confidentiality of the:\n1. Group capital calculation and the group capital ratio produced within the\ncalculation and any group capital information received from an\ninsurance holding company supervised by the Federal Reserve Board or\nany United States groupwide supervisor; and\n2. Liquidity stress test results and supporting disclosures and any liquidity\nstress test information received from an insurance holding company\nsupervised by the Federal Reserve Board and non -United States\ngroupwide supervisors.\n(2) Neither the commissioner nor any person who received documents, materials, or\nother information while acting under the authority of the commissioner or with\nwhom the documents, materials, or other information are shared, pursuant to this\nsubtitle, shall be permitted or required to  testify in any private civil action\nconcerning any confidential documents, materials, or other information subject to\nsubsection (1) of this section.\n(3) The commissioner:\n(a) May share documents, materials, or other information, including confidential\nand privileged documents, materials, or other information subject to\nsubsection (1) of this section, including documents and materials containing\ntrade secrets or proprietary information, with:\n1. Other state, federal, and international regulatory agencies;\n2. The NAIC;\n3. Any third-party consultants designated by the commissioner; and\n4. State, federal, and international law enforcement authorities, including\nmembers of any supervisory college described in KRS 304.37-055;\nif the recipient agrees in writing to maintain the confidentiality and privileged\nstatus of the documents, materials, or other information, and has verified in\nwriting the legal authority to maintain confidentiality;\n(b) May only share confidential and privileged documents, materials, or ot her\ninformation reported pursuant to KRS 304.37 -020(14), notwithstanding\nparagraph (a) of this subsection, with commissioners of states having statutes\nor regulations substantially similar to subsection (1) of this section, and who\nhave agreed in writing not to disclose the information;\n(c) 1. May receive documents, materials, or other information, including\nconfidential and privileged documents, materials, or other information,\nincluding proprietary information or trade secrets, from the NAIC and its\naffiliates and subsidiaries and from regulatory and law enforcement\nofficials of other foreign or domestic jurisdictions; and\n2. Shall maintain as confidential or privileged any documents, materials, or\nother information received with notice or the understandin g that it is\nconfidential or privileged under the laws of the jurisdiction that is the\nsource of the documents, materials, or other information; and\n(d) Shall enter into written agreements with the NAIC and any third -party\nconsultant designated by the comm issioner governing sharing and use of\ninformation provided pursuant to this subtitle and consistent with this\nsubsection that:\n1. Specify procedures and protocols regarding the confidentiality and\nsecurity of information shared with the NAIC or a designated third-party\nconsultant pursuant to this subtitle, including procedures and protocols\nfor sharing by the NAIC with other state, federal, or international\nregulators. The agreement shall provide that the recipient agrees in\nwriting to maintain the confiden tiality and privileged status of the\ndocuments, materials, or other information and has verified in writing\nthe legal authority to maintain such confidentiality;\n2. Specify that ownership of information shared with the NAIC or a third -\nparty consultant pursuant to this subtitle remains with the commissioner,\nand the NAIC's or a designated third -party consultant's use of the\ninformation is subject to the direction of the commissioner;\n3. Except for documents, material, or information reported pursuant to\nKRS 304.37-020(16), prohibit the NAIC or designated third -party\nconsultant from storing the information shared pursuant to this subtitle\nin a permanent database after the underlying analysis is completed;\n4. Require prompt notice be given to an insurer whose c onfidential\ninformation in the possession of the NAIC or a designated third -party\nconsultant pursuant to this subtitle is subject to a request or subpoena to\nthe NAIC or a designated third -party consultant for disclosure or\nproduction;\n5. Require the NAIC or a designated third -party consultant to consent to\nintervention by an insurer in any judicial or administrative action in\nwhich the NAIC or a designated third -party consultant may be required\nto disclose confidential information about the insurer shared with the\nNAIC or a designated third-party consultant pursuant to this subtitle; and\n6. For documents, material, or information reporting pursuant to KRS\n304.37-020(16), in the case of an agreement involving a third -party\nconsultant, provide for notificatio n of the identity of the consultant to\nthe applicable insurers.\n(4) The sharing of information by the commissioner shall not constitute a delegation of\nregulatory authority or rulemaking, and the commissioner is solely responsible for\nadministration, execution, and enforcement of this subtitle.\n(5) A waiver of any applicable privilege or claim of confidentiality in the documents,\nmaterials, or information shall not occur as a result of disclosure to the\ncommissioner under this section or as a result of sharing as authorized in subsection\n(3) of this section.\n(6) Documents, materials, or information in the possession or control of the NAIC or a\nthird-party consultant designated by the commissioner pursuant to this subtitle shall:\n(a) Be confidential by law and privileged; and\n(b) Not be subject to:\n1. The Kentucky Open Records Act, KRS 61.872 to 61.884;\n2. Subpoena; or\n3. Discovery or admission into evidence in any private civil action.\n(7) (a) The group capital calculation and resulting group capital rat io, and the\nliquidity stress test along with its results and supporting disclosures, required\nunder KRS 304.37 -020 are regulatory tools for assessing group risks and\ncapital adequacy and group liquidity risks, respectively, and are not intended\nas a means to rank insurers or insurance holding company systems generally.\n(b) Except as permitted under paragraph (c) of this subsection or as may\notherwise be required under the provisions of this subtitle, no person shall\nmake, publish, disseminate, circulate, or  place before the public, or cause\ndirectly or indirectly to be made, published, disseminated, circulated, or\nplaced before the public:\n1. In a newspaper, magazine, or other publication;\n2. In the form of a notice, circular, pamphlet, letter, or poster;\n3. Over any radio or television station or any electronic means of\ncommunication available to the public; or\n4. In any other way as an advertisement, announcement, or statement;\ncontaining a representation or statement with regard to the group capital\ncalculation, group capital ratio, the liquidity stress test results, or supporting\ndisclosures for the liquidity stress test of any insurer or insurer group or of any\ncomponent derived in the calculation by any insurer, broker, or other person\nengaged in any manner in the insurance business.\n(c) If any materially false statement with respect to the:\n1. Group capital calculation, resulting group capital ratio, an inappropriate\ncomparison of any amount to an insurer's or insurance group's group\ncapital calculation or resulting group capital ratio; or\n2. Liquidity stress test result, supporting disclosures for the liquidity stress\ntest, or an inappropriate comparison of any amount to an insurer's or\ninsurance group's liquidity stress test result or supporting disclosures;\nis published in any written publication and the insurer is able to demonstrate\nto the commissioner with substantial proof the falsity of such statement or the\ninappropriateness, as the case may be, then the insurer may publish\nannouncements in a w ritten publication if the sole purpose of the\nannouncement is to rebut the materially false statement.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=52904","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:56Z","sha256":"c423f52e40445434b146b0e78e338e81336e8aca88c059d57851909f631fe4d0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.37-040","next":"us-ky/krs-304.37-055"},"notice":"GroundRules: Original legal text. Not legal advice."}