California Insurance

Abuzz assurances have been consulted over the past few weeks in regard to future proposals for changes and new rules of privacy in the context of Congress’ Gramm-Leach-Bliley Financial Modernization Act (GLB).

Each state has already finalized the details of the execution of an aspect of the BAS in connection with the insurance industry (definition of what the company is the method for sending the opt - Communications out the privacy of their customers), but many are still crawling, catching up on another aspect, the company would need a written information security programme for the protection of personal data of customers.

This new surge of proposals, according to a recent General Accounting Office report pointed out that, GLB mandate to protect customers of non-public personal information, including financial situation and health.

According to a press release from the National Association of Independent Insurers (NAII), “the objectives of the programme of information security in the Gramm-Leach-Bliley Act, to ensure the security and confidentiality of customer data, protection against all threats or foreseeable risks to the safety and integrity of information and protection against unauthorized access or use of important information could harm or inconvenience to all customers. ”

“The model standards for the protection of customer data is very well written, when it leads to each insurer can determine what they need in the nature of standards for the protection of their customer data,” said Kathleen Jensen, insurance services for the orientation of the NAII.

While New York and Oregon are the only two countries have officially adopted standards for securities, nine other countries already have proposals, after Rey Becker, Vice President of the Division of the damage of the Alliance of American Insurers. This includes Arkansas, California, Iowa, Montana, Nebraska, North Carolina, South Dakota, Utah and West Virginia.

Concern aware of the NAII the use of the term “consumer” and not as “customer” of Arkansas and WV, as a removal of the heavy NAII.

“The difference between customers and consumers back to ABG,” said Jensen. “They include several people. A consumer is someone that insurance does not have an ongoing relationship. Furthermore, in the definition Consumer east applicant and work comp. An insurance applicant, in which they are insured, they are a client The [insurer] has a durable relationship. This is not in addition to standards for people [ customers]. Enlargement standards for consumer protection, all of a sudden, you have the same standards for a candidate.

“We do not believe that States should allow consumers because it is an additional burden on insurance companies,” she added.

Another State, waves of privacy with regard to the proposed standards for safety oversight is Oregon, whose regime has adopted the requirement that the licensee “to determine whether the standards should also for business information from sources non-customers. ”

“If Mr. Oregon, they need to commercial enterprises, it goes beyond what is responsible for GLB. GLB part of the space, it was for all financial institutions on a level playing field in terms of privacy, so that a financial institution does not have to spend for more money, or tighter restrictions, which they regard to respect and, therefore, are here to disadvantage other financial institutions , “Said Jensen. “This indicates that a company needs for commercial lines, it is to take something that levelling conditions of competition and it is Putting restrictions for insurance companies, which are not on banks. ”

On the obverse of California, the modification of rules of origin continue volleyball and fro between the California Department of Insurance (CDI) and associations as a representative of the insurance sector. While the Commission asserts that its regulations increasingly popular, similar to the NAIC model, associations require their concerns.

“Our main concerns really cook up a concern that we have in California only requirements for the conclusion will be very costly for the insurance industry to manage,” said Becker. “[It] is finally the dissolution of providing less choice for consumers in California insurance in California because the system is different, that companies are reluctant to write his headquarters in that state.”

Becker called on various aspects of the proposed regulations, the Alliance has expressed concern. “The ministry seems to take an approach quite unique to the language in the privacy notices, and require that [it] readability test, and that [it] be printed in a certain type size. None of the other countries are to train the concept, “he said. Another area of the Alliance, the requirement that insurers to their customers shipping Pre-Paid envelopes back for use with their opt-out-forms an opinion that Becker is unnecessarily expensive, but costs printing and postage.

A major concern of both Becker and Sam Sorich, Senior Vice President and General Counsel of the National Association of Independent Insurers (NAII) of the CDI is the desire to regulate communications in addition to the personal insurance lines of action, Becker and Sorich totally disagree with. Instead of a hearing on February 8, 2002, Sorich and the NAII testified against this action and said that “federal law and the law of the State shall be valid only for insurance, ’s purchased for the family, personal, and that the rules should not be considered the commercial insurance policy. ”

Becker adds at this stage to say “This was not the intent of Congress, and not with the intention of the legislature, California, and it is not necessary. If you are talking about the individual, buy a car insurance policy or owner, there is something to say duty, consumer protection, and often can be unsophisticated with a buyer in many cases. On the commercial side, they are businesspeople. They represent the recruitment and dismissal of decisions every day, they signed rental contracts, purchase insurance, which is not that the laws were to be resolved. ”

Sorich also said that the NAII is concerned by the requirement that the mandate would be to have insurance to the policyholder, please fill out an opt-out-for exchanging information with other insurance companies, at the time of renewal, to enable insurers in the order to be capable of business for new tenders. “Our point, it is not really necessary, there is no real requirement of the federal law to be done and we thought it was a requirement that is not possible for consumers and all is a little more difficult for agents, coverage and the best price for an agent of the customer, “said Sorich.

Regarding the proposals relating to information security program written, California already has in its privacy regulations. Becker adds: “We have no problem with this part of the settlement, California. It is a requirement that in GBS. What we have seen so far in resolving California very well with the NAIC model in the subject. ”

Bottom line, the rules of confidentiality are the effects on agents and independent brokers and insurance companies in Germany.