The American Insurance Association has registered concerns with regulators over proposed changes to a privacy regulation that went into effect last year.
The insurance trade group, based in Washington, is among several that are concerned over changes that are being considered by a privacy working group of the National Associaton of Insurance Commissioners in Kansas City, Mo.
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 NAIC in September 1999.
Additionally, regulators at the NAIC summer meeting in Philadelphia 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 Health Insurance Portability And Accountability Act 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.
Regulators broached the amendments during a discussion at the privacy issues working group. During the discussion, insurers in the audience were assured that the proposed amendments were clarifications and not changes to the existing model.