The Alliance of American Insurers is pleased with recent privacy developments in the California Legislature. On June 17, SB 1 failed in the Assembly Banking and Finance Committee, receiving only three yes votes from the 12-member committee.
“Once again, the Assembly Banking and Finance Committee has imposed a ‘reality check’ upon over-reaching Senate privacy legislation. The Committee recognized that imposing costly ‘California-only’ mandates and restrictions will result in higher premiums and fewer choices for California consumers,” said Rey Becker, vice president for Property/Casualty with the Alliance.
“California has had an effective insurance privacy law on the books for 22 years, enforced by the Department of Insurance. Why on earth would we want to ‘balkanize’ this process by involving the State Attorney General and hundreds of local prosecutors in regulating a multi-national industry? Wisely, no other state has done this,” Becker said.
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