Alliance Disagrees with Revised CA Privacy Regulations

The Alliance of American Insurers is expressing disappointment with revised privacy regulations from the California Department of Insurance.

“The California Department has ignored ample legal and public policy testimony, and persists in seeking adoption of a privacy regulation that conflicts with both the Gramm-Leach-Bliley (GLB) Act and existing California law,” said Rey Becker, vice president of property/casualty for the Alliance. “If adopted, the regulation will create costly ‘California-only’ mandates and restrictions.”

He noted that “while a few of the latest changes proposed by the department are constructive, on the whole, the regulation has gotten worse since first being released late last year.”

Becker said that the latest version still misses the mark by:

Seeking to regulate the disclosure of publicly available information;

Creating new barriers and costs through California-only language for notices;

Requiring self-addressed, postage-paid return envelopes;

Conflicting with GLB and California law by including commercial insurance; and

Deviating from national standards designed to promote operational consistency.

“Taken together, this proposal would create costly barriers for insurers wishing to write business in the state,” Becker said. “This would translate into fewer choices and higher premiums for the insurance consumers of California.”

Topics California Legislation