The House Economic Development, Banking, Insurance, and Commerce Committee released House Bill 74, which clarifies that turning over files to the insurance commissioner during a market conduct or regulatory examination does not itself waive attorney–client or other privileges owed to policyholders or claimants.

Rebecca Kidner, representing the American Property Casualty Insurance Association, told the committee the bill would protect companies from exhaustive redaction burdens and reflected model language vetted by the National Association of Insurance Commissioners (NAIC). Kidner said similar language is already in place in 19 states and the District of Columbia and that the privilege could still be challenged in court if necessary.

Chris Haas of the Department of Insurance said the department reviewed the legislation and did not object, but noted that carriers could continue their existing practice of redacting privileged information and that objections to privilege would remain subject to court review.

The committee moved and seconded the motion to release House Bill 74. In a roll call the chair recorded affirmative votes by Chair Bush, Vice Chair Snyder Hall, Representative Wilson Anton and Representative Buick; the motion met the required number of votes and the bill was released from committee.

Votes at a glance: House Bill 74 — motion to release from committee (mover: not specified; second: not specified); recorded yes votes include Chair Bush, Vice Chair Snyder Hall, Representative Wilson Anton and Representative Buick; outcome: released from committee.

Proponents said the change would streamline examinations by reducing the time carriers spend redacting privileged material while preserving the ability to litigate privilege claims in court.