AI-assisted research summary: The commissioner must gather and analyze market information, use similar market-analysis procedures, choose cost-effective market conduct actions, avoid duplicate information requests, and coordinate with other states.
(a) The commissioner shall gather information from data currently available to the insurance division, as well as surveys and required reporting requirements, information collected by the National Association of Insurance Commissioners and a variety of other sources in both the public and private sectors, information from within and outside the insurance industry from objective sources, information from websites for insurers, agents, and other organizations, and information from other sources; provided that prior to use, the sources are published at least annually in a bulletin or circular. The information shall be analyzed to develop a baseline understanding of the marketplace and to identify for further review insurers or practices that deviate significantly from the norm or that may pose a potential risk to the insurance consumer. The commissioner shall use procedures that are substantially similar to the National Association of Insurance Commissioners' guidelines on market analysis as one resource in performing this analysis. The commissioner shall use the following policies and procedures in performing the analysis required under this section: (1) Identify key lines of business for systematic review; and (2) Identify companies for further analysis based on available information. (b) If the analysis compels the commissioner to inquire further into a particular insurer or practice, the following continuum of market conduct actions may be considered prior to conducting a targeted, on-site market conduct examination. The action selected shall be made known to the insurer in writing. These actions may include but are not limited to: (1) Correspondence with the insurer; (2) Insurer interviews; (3) Information gathering; (4) Policy and procedure reviews; (5) Interrogatories; and (6) Review of insurer self-evaluation and compliance programs, including membership in an organization such as a best-practice organization that has as its central mission the promotion of high ethical standards in the marketplace. (c) The commissioner shall select a market conduct action that is cost-effective for the insurance division and the insurer, while still protecting the insurance consumer. (d) The commissioner shall take those steps reasonably necessary to: (1) Eliminate requests for information that duplicate: (A) Information provided as part of an insurer's annual financial statement, the annual market conduct statement of the National Association of Insurance Commissioners, or other required schedules, surveys, or reports that are regularly submitted to the commissioner; or (B) Data requests made by other states if that information is available to the commissioner, unless the information is state-specific; and (2) Coordinate market conduct actions and findings with other states. [L 2007, c 227, pt of §1]