Michigan Office of Financial and Insurance Services (OFIS) Commissioner Linda A. Watters announced that new rules designed to help protect the security and confidentiality of insurance companies’ customer information took effect Aug. 24.
The rules establish standards for the companies’ information security programs and are intended to protect Michigan consumers from identity theft, unwarranted invasions of their privacy, and dissemination of their personal information to other businesses, marketers and the general public. The rules, which comprise Rule Set 2003-041, are the first set of rules to be promulgated by OFIS since it became an agency in April 2000. They were proposed in accordance with the requirements of the federal Gramm-Leach-Bliley Act and the Michigan Insurance Code.
Watters said the rules also permit OFIS to evaluate a company’s security measures, either during an exam of the company or in response to a consumer complaint, and to take needed action to correct any problems. A violation of these rules may result in fines or other penalties under the insurance code.
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