NU Online News Service, May 28, 5:39 p.m. — Washington
State insurance authorities are behind most federal agencies in establishing the consumer privacy standards required by the Gramm-Leach-Bliley Financial Services Modernization Act, the General Accounting Office says in a new report.
Although most states have adopted regulations or enacted legislation based on a model regulation developed by the National Association of Insurance Commissioners, Kansas City, Mo., there is no guarantee that all states will implement the regulation consistently, the GAO warns.
While states are in the process of implementing their versions of the model regulation, they may not offer a consistent level of legal protection for the security and confidentiality of insurance customer information and records, the GAO says.
In contrast, the GAO says, except for the Federal Trade Commission, all the federal agencies charged with implementing GLB’s privacy requirements have already issued their final standards.
The 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, several have retained versions of an earlier model, developed in 1982, which they believe provides greater protections than the 2000 model.