Weekly Tip: Trade Secret Request Process


Weekly Tips

Trade Secret Request Process


Working on pricing assumptions for a long-term care rider filing or morbidity assumptions for a long-term care product filing and wondering what the process is for requesting trade secret protection of this proprietary information?  This weekly tip will explain the process for requesting trade secret for the proprietary parts of a product filing which we generally see with respect to individual long-term care and disability income filings associated with pricing and related assumptions.

All requests for trade secret protection must be in writing and addressed to Karen Schutter, IIPRC Executive Director, as the designated Custodian of Records pursuant to the “IIPRC Public Access Rule” titled Establishment of Conditions and Procedures for the Public Inspection and Copying of Information and Official Records of the Interstate Insurance Product Regulation Commission. Trade secret requests generally are made post-submission and before the product filing containing trade secret information is approved as a pending filing under review is not considered a Public Record under Section 103(b) of the Public Access Rule. Please do not send the request through SERFF. The request should identify with specificity the information or documents the company filer is seeking to protect as trade secret and detailing the reasons the information qualifies as “trade secret” as defined in Section 102(h) of the IIPRC Public Access Rule as follows:

“’Trade Secret’ means any information, which may include, but is not limited to, a formula, pattern, compilation,  program, device, method, technique or process, insurance actuarial formulas, statistics, supporting data, assumptions, underwriting guidelines and credit scoring methodologies, that: a) derive independent economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by other persons who can obtain economic value from their disclosure or use, and b) are the subject of efforts that are reasonable under the circumstances to maintain their secrecy.”

Please note the IIPRC will not generally recognize trade secret on the Compact-approved form(s) or rate schedule(s) as this information is available when the product is issued or used in the marketplace and would not necessarily meet part b of the “Trade Secret” definition above.  In general, supporting information including portions of the Actuarial Memorandum and exhibits may have trade secret information redacted as well as any correspondence between the company filer and IIPRC Office that discusses the trade secret information. Trade secret requests are not recognized until the filing is near approval as revisions are common during the filing process.  Once the product filing is close to approval, the company filer will work with the IIPRC Product Reviewer to attach a confidential version and a publicly-available redacted version of the trade secret documents.  Any document containing trade secret information needs the word ‘confidential’ in both the SERFF Document Name and in the Attachment Name. When the filing is approved, the confidential trade secret information will not be made publicly available as trade secret information is not considered a Public Record under Section 103(b) of the Public Access Rule. 

If you have any questions about making a trade secret request, please contact the IIPRC Office.