NU Online News Service, April 11, 10:23 a.m. – Insurance departments will soon be posting information about the USA Patriot Act on their Web sites and sending notices about the new federal law to the insurers under their jurisdiction.
The act, which addresses terrorism and money laundering, takes effect April 24, although the U.S. Treasury Department does not expect to release the regulations needed to implement the act until Oct. 26.
Congress enacted the law in response to the Sept. 11, 2001, attacks.
The National Association of Insurance Commissioners, Kansas City, Mo., adopted a bulletin April 10 that deals with two sections of the act: Section 352, which establishes company safeguards, such as compliance procedures; and Section 326, which is a “know your customer rule” that requires verification of customer identities.
Regulators suggested during a recent NAIC discussion that the law could apply to producers as well as to insurers, but they said they were not certain exactly how producers would be included.
The first round of Patriot Act announcements will go to the insurers, not to the agents, the regulators agreed.
The text of the act is available on the Web at http://frwebgate.access.gpo.gov/cgi-bin/useftp.cgi?IPaddress=22.214.171.124&filename=publ056.107&directory=/diskb/wais/data/107_cong_public_laws