Subdivision 1. Generally.
All risk-based capital reports, to the extent the information in them
is not required to be set forth in a publicly available annual statement schedule, and risk-based
capital plans, including the results or report of an examination or analysis of an insurer performed
pursuant to sections
, and any corrective order issued by the commissioner
pursuant to an examination or analysis, with respect to a domestic insurer or foreign insurer that
are filed with the commissioner constitute information that might be damaging to the insurer if
made available to its competitors, and shall be maintained by the commissioner as nonpublic
data as defined in section
13.02, subdivision 9
. This information is not subject to subpoena,
other than by the commissioner and then only for the purpose of enforcement actions taken by
the commissioner pursuant to sections
or other provision of the insurance
laws of this state.
Subd. 2. Prohibition on announcements.
The comparison of an insurer's total adjusted
capital to any of its risk-based capital levels is a regulatory tool that may indicate the need
for possible corrective action with respect to the insurer and is not intended as a means to
rank insurers generally. Except as otherwise required under sections
making, publishing, dissemination, circulating, or placing before the public, or causing, directly
or indirectly to be made, published, disseminated, circulated, or placed before the public, in
a newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet,
letter, or poster, or over any radio or television station, or in any other way, an advertisement,
announcement, or statement containing an assertion, representation, or statement with regard
to the risk-based capital levels of an insurer, or of any component derived in the calculation,
by an insurer, agent, broker, or other person engaged in any manner in the insurance business
would be misleading and is prohibited. However, if a materially false statement with respect to
the comparison regarding an insurer's total adjusted capital to its risk-based capital levels, or
any of them, or an inappropriate comparison of any other amount to the insurer's risk-based
capital levels is published in a written publication and the insurer is able to demonstrate to the
commissioner with substantial proof the falsity of the statement, or the inappropriateness, as the
case may be, then the insurer may publish an announcement in a written publication if the sole
purpose of the announcement is to rebut the materially false statement. This subdivision does
not prohibit an insurance company or its holding company from disclosing information about its
risk-based capital levels in the notes to its financial statements if required by pronouncements of
the American Institute of Certified Public Accountants or the Financial Accounting Standards
Board, or making this disclosure as required by other governmental regulatory agencies.
Subd. 3. Prohibition on use in ratemaking.
The risk-based capital instructions, risk-based
capital reports, adjusted risk-based capital reports, risk-based capital plans, and revised risk-based
capital plans are intended solely for use by the commissioner in monitoring the solvency of
insurers and the need for possible corrective action with respect to insurers. This information
shall not be used by the commissioner for ratemaking nor considered or introduced as evidence
in a rate proceeding nor used by the commissioner to calculate or derive any elements of an
appropriate premium level or rate of return for a line of insurance that an insurer or an affiliate is
authorized to write.
History: 1995 c 253 s 9; 1996 c 446 art 2 s 6