NU Online News Service, April 11, 10:43 a.m. – The National Association of Insurance Commissioners, Kansas City, Mo., has adopted the Standards for Safeguarding Customer Information model regulation.
The model regulation seeks to satisfy insurance privacy regulation requirements in the Gramm-Leach-Bliley Financial Services Modernization Act of 1999.
The act gives state insurance regulators responsibility for ensuring that insurers protect consumers’ private information.
The NAIC has no direct authority to change state insurance laws and regulations on its own. Individual states decide whether to adopt NAIC recommendations.
NAIC officials say it’s important for states to try to make the privacy model effective as quickly as possible, because the U.S. General Accounting Office has already criticized the amount of time regulators have taken to develop the privacy protection model.