SB 1402 Summary

• Creates a privilege for insurance compliance self-evaluative audits, making them non-discoverable and inadmissible in civil, criminal, or administrative proceedings.

• Protects auditors and consultants from being examined regarding the audit or audit documents, unless privilege is waived or certain exceptions apply.

• Allows companies to voluntarily submit audit documents to the Insurance Commissioner as confidential documents without waiving privilege protection.

• Permits courts to compel disclosure after in camera review if privilege is asserted fraudulently, document is not privileged, or (in criminal cases) material contains evidence of criminal conduct and other specified conditions are met.

• Declares an emergency effective date and preserves other statutory and common law privileges including attorney-client privilege, work product doctrine, and subsequent remedial measures exclusion.