IN HB1037

Establishes privilege protection for voluntary internal insurance compliance audit documents, making them non-discoverable and inadmissible as evidence in civil or administrative proceedings

Defines insurance compliance audits as voluntary internal evaluations conducted by or on behalf of insurers to identify, prevent, or promote compliance with laws, regulations, orders, or industry standards

Requires individuals who discover alleged criminal violations during an audit to report them to the insurer, who must then notify the insurance commissioner within 30 days

Allows courts to compel disclosure of audit documents after in camera review if the privilege is asserted fraudulently, the material is not actually privileged, or the insurer failed to take reasonable corrective action

Exempts original underlying corporate records, documents required by law, information from regulatory monitoring, and materials prepared in ordinary business operations from privilege protection