NAIC Adopts Model Consumer Privacy Regulation Initiative

The National Association of Insurance Commissioners has adopted standards for the regulation of Consumer Financial and Health Information in an effort to guide individual states in their efforts to comply with the consumer privacy protections outlined in the Gramm-Leach-Bliley Act.

“We believe a national standard for the privacy of personal health and financial information is critical for both consumers and financial institutions,” said Kathleen Sebelius, Kansas Commissioner of Insurance and NAIC Vice President. “This NAIC action will enhance the ability of states to enact uniform standards and protect sensitive consumer information across the country. This uniform standard will assure consumers that their personal information will be protected regardless of where they live and regardless of which financial entity collects the information.”

The NAIC’s model privacy regulation is a direct response to the requirements set forth by the Congress under GLBA. “We tailored our model to reflect the provisions of GLBA and to provide insurers with a workable national uniform standard,” Sebelius explained.

“The goal of the Working Group was to maintain as much uniformity with the federal rules as possible to ensure a level playing field between insurers and their competitors in the financial services sector. The Working Group also recognized that some changes and additions to the federal rules would be necessary because insurance is different from banking and securities.