PIANJ Applauds DOBI’s Customer Info Safeguard Proposals

January 20, 2004

In a written letter to Assistant Commissioner Douglas A. Wheeler, the President of the Professional Insurance Agents of New Jersey Inc., John D’Agostino Jr., CIC, applauded the latest version of the Department of Banking and Insurance’s new rules regarding the establishment of standards for safeguarding customer information

The PIANJ’s announcement noted that the proposals would “bring New Jersey into compliance with the National Association of Insurance Commissioners’ model for developing standards for safeguarding customer information.” Several other states, including New York and California, already have adopted the NAIC model, and the changes would not only provide uniformity but would also assure e “flexibility for insurance producers to tailor an appropriate security program for their own agency.”

The proposal requires producers and insurers to implement a comprehensive written information security program. But instead of making certain actions and procedures mandatory, licensees can take initiatives to develop their information security program. The DOBI has “reproposed” its original regulations as “examples.” They include assessing risk; managing and controlling risk; using due diligence in selecting service providers and requiring service providers to implement appropriate security measures; and monitoring and adjusting the program as appropriate.

“PIANJ applauds the department for reproposing these important rules and taking into consideration PIANJ’s and others’ suggestions, for making the rule more workable for the insurance industry, while at the same time adequately protecting the privacy and confidentiality of customers’ nonpublic information,” D’Agostino concluded.

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