GAO Says States’ Privacy Efforts Slow And Patchy
State insurance authorities are behind most of the federal regulators in establishing standards for safeguarding consumer privacy under the Gramm-Leach-Bliley Act, the General Accounting Office says.
The report says that while most states have adopted regulations or enacted legislation based on a model regulation developed by the National Association of Insurance Commissioners, there is no guaranty that all states will consistently implement the regulation.
Each state, GAO says, must independently take action to implement the regulation. During this period, GAO says, the security and confidentiality of insurance customer information and records may not be subject to a consistent level of legal protection.
GAO also notes that there is considerable variation in the privacy standards adopted by the states. Although most have adopted the NAIC model developed in 2000, GAO says, several states have retained versions of an earlier model, developed in 1982, which they believe provides greater protections.