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Panel backs bill to clarify confidentiality of insurance complaint records
Summary
The committee approved an amendment and recommended due pass for SB 2089, which clarifies that consumer complaint subject matter is public while preserving confidentiality for personal, financial and health information provided during department investigations.
The Senate Industry and Business Committee voted to adopt an amendment and recommended a due pass on Senate Bill 2089, a measure clarifying which Insurance Department records are confidential and which may be disclosed to the public.
Johannes Paulsgraff, general counsel and legal division director for the North Dakota Insurance Department, told the committee the bill aims to clarify that the subject matter of consumer complaints — including the complaint—s general description and disposition — should be available to the public, while personal, financial and health information in complaint files remain confidential. Paulsgraff said the department—s current confidentiality statute (N.D.C.C. 26.10231) had language that could be read to keep complaint subject matter confidential and expose officials to criminal penalties for disclosure; SB 2089 would remove the ambiguous "may" language and make the complaint subject matter public while protecting privileged materials.
Paulsgraff also presented a friendly amendment suggested by industry that adds language to preserve privilege and confidentiality when the commissioner shares information as authorized by statute; the text mirrors language in NAIC model provisions and is intended to protect providers from civil claims that would otherwise allege waiver of confidentiality when documents are shared with the department.
Dennis Pathroff of the American Property Casualty Insurance Association (APCIA) testified in support and told the committee APCIA supports the bill as drafted and amended. Several senators asked whether making the complaint subject matter public would identify complainants; Paulsgraff replied that case law and practice protect personal identifying information and that the complaint is typically given to the subject licensee in administrative proceedings.
The committee adopted the amendment by roll call (aye votes recorded from Senator Klein, Senator Kessel, Chairman Bridal, Vice Chairman Behm and Senator Engott) and then voted 5‑0 to give the bill a due‑pass recommendation as amended. Senator Behm was designated as the bill—s carrier to the next stage.
