NU Online News Service, Aug. 22, 6:53 p.m. – The Alaska Division of Insurance has released a draft of a proposed financial privacy regulation and scheduled a hearing for Sept. 5.
Alaska regulators have been working on the regulation for about a year.
The Alaska regulation could be “quite onerous” because of a section that would require insurers to ask consumers to take active steps to “opt in” to information-sharing arrangements with their own affiliates, according to Rey Becker, a vice president at the Alliance of American Insurers, Downers Grove, Ill.
Unlike regulations proposed in some other states, the Alaska draft would not require insurers to send consumers privacy notices separate from those required by the federal Gramm-Leach-Bliley Financial Services Modernization Act of 1999, says Mike Harrold, manager of the Seattle regional office of the National Association of Independent Insurers, Des Plaines, Ill.
But some experts worry the current version of the regulation would require insurers to maintain notes concerning privacy indefinitely, Harrold says.
More information about the draft and the hearing is available on the Web at http://www.dced.state.ak.us/insurance/pub/8184kc.pdf