NU Online News Service, June 28, 3:15 p.m. – The Texas Department of Insurance says it will give insurers at least 60 days to act on the new financial privacy regulations it is preparing.
Texas and other states are rushing to develop financial privacy regulations to comply with the federal Gramm-Leach-Bliley Financial Services Modernization Act.
The Texas Legislature recently enacted a financial privacy bill, S.B. 712, that requires the Texas insurance commissioner to develop privacy rules based on a model regulation developed by the National Association of Insurance Commissioners, Kansas City, Mo., within 30 days after June 14.
The Texas department will comply by adopting emergency rules no later than July 13, according to a bulletin issued by Texas Insurance Commissioner Jose Montemayor.
Affected companies will have to begin coming up with the procedures needed to comply with the emergency rules as soon as the rules appear, but the department expects to give affected insurers, health maintenance organizations and insurance agencies at least 60 days to send out privacy notices, Montemayor says.