AIA Denounces Calif. Privacy Bill

|

NU Online News Service, March 5, 12:55 p.m.EST?Some California lawmakers think a certain privacy billwould protect consumers from intrusive information-sharing amongfinancial instutions. A prominent insurer trade group, however,believes the bill would in fact limit consumer choice and increaseprices.

|

The California Senate has approved a measure that would createan "opt-in" system for the sharing of consumer information amongnon-affiliated financial institutions (including insurers). Thebill, S.B. 1, provides consumers an "opt-out" system forinformation sharing among affiliated financial institutions.

|

Under an "opt-in" system, information can be shared only if theconsumer specifically consents. "Opt-out" means the information canbe shared unless the consumer specifies otherwise.

|

The Washington, D.C.-based American Insurance Association wastedno time in voicing its objections to the measure.

|

"Once again the California Senate has approved an unworkablebill that raises the cost of providing financial products in thisstate and does nothing to provide additional benefits toconsumers," said Bill Gausewitz, AIA' s assistant vice presidentfor the Western region.

|

Mr. Gausewitz noted that the provisions in the bill would resultin consumers missing out on new conveniences and services, orpaying a higher price for them due to lack of knowledge regardingwhat financial institutions are offering.

|

This marks the third year in a row that the state senate hasapproved the bill. The vote was 23 to 6. The bill now heads to theCalifornia Assembly.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.