Privacy Regulations Continue To Evolve
A year after insurers began conforming to new privacy guidelines, privacy continues to concern both regulators and companies.
Privacy guidelines that put insurers in compliance with requirements under the Gramm-Leach-Bliley Act of 1999 became effective a year ago, on July 1, 2001.
Amendments are being considered for the Privacy of Consumer Financial and Health Information Regulation, a regulation adopted by the National Association of Insurance Commissioners in September 1999.
Additionally, regulators at the NAIC meeting here last month discussed a privacy regulation developed by the Department of Health and Human Services and how it compares with the NAIC Health Information Privacy Model Act. The issue was touched on by regulators but no decisions have been made on a direction to take concerning HIPAA privacy.
Currently, 36 states have promulgated regulations based on the latest NAIC model, while 13 states have laws based on the NAICs Insurance Information and Privacy Protection Model Act, from the early 1980s.