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Regulation and Compliance > State Regulation

NAIC May Reopen Model Privacy Reg

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NU Online News Service, Aug. 23, 4:45 p.m. – Regulators at the National Association of Insurance Commissioners, Kansas City, Mo., are discussing a proposed amendment that could reopen the NAIC’s model privacy regulation, even though the model has already shaped privacy laws and regulations in 37 jurisdictions.

The proposed amendment would change the rules governing privacy notices to group policyholders.

The amendment would require insurers to provide initial, annual and revised notices to the plan sponsor, the group or blanket insurance policyholder, and any group annuity contractholders or workers’ compensation policyholders.

NAIC members expect to discuss the proposed amendment in September at the NAIC’s fall meeting.

Insurance trade groups are objecting to the amendment on a number of grounds.

Some property-casualty insurers object to the idea of including commercial lines and worker’s compensation in the regulation.

Other critics worry that any hope for regulatory uniformity will be lost if the insurance industry has to go back to the states to ask for another round of changes to state privacy rules.