Michigan Governor John Engler recently signed legislation that provides confidentiality protection for insurers that conduct voluntary self-assessments of their compliance with state insurance laws. According to the National Association of Independent Insurers (NAII), Michigan is the fifth state to sign such a law.
Senate Bill 674 provides confidentiality protection to documents created as part of the insurance compliance audit. These documents submitted to the Commissioner of the Office of Financial and Insurance Services may not be admitted as evidence in a civil, criminal or administrative proceeding.
“Self-audit privilege for the property and casualty industry is still relatively new,” said NAII counsel, Laura Kotelman. “Only Illinois, New Jersey, North Dakota, Oregon and now Michigan offer these protections to the industry.”
Kotelman noted that the law provides insurers with confidentiality protection from potential abuse of the privileged information through class action lawsuits seeking millions of dollars in punitive damages.
While only five states have adopted self-audit laws, a NAII working group is developing a set of principles that it will recommend be included in legislation in other states.
Banks Still Face Legal Claims After $25 Billion Settlement
MF Global Judge to Examine Insurance Payments for Former Executives
Daredevil CEOs May Put Companies at Risk
California Independent Contractor Law May Be Liability for Agents, Brokers
North Carolina Continues Auto Regulation Debate As Rates Stay Same for 2012
Long-time California Lobbyist Looks to 2012 Legislation Affecting Insurance
Mine Safety Chief Seeks to End Complacency Over Safety
Virginia Court Grants Rehearing of Global Warming Claims Case
