States Getting Back to Basics on Privacy
To The Editor:
I have read recent accounts in your publication about state legislative and regulatory activity on privacy. The information certainly shows many competing and often confusing developments from state to state.
However, what has yet to be widely publicized is the most encouraging development.
As state insurance departments and legislatures tackle the process of implementing the privacy provisions of the Gramm-Leach-Bliley Financial Services Reform Act, they are increasingly sticking to the basics.
While at least 12 departments have published regulations, as of this writing, half have jettisoned the ill-conceived health information portion of the National Association of Insurance Commissioners' model regulations.
More insurance departments are also balking at the model's costly attempt to interfere in the administration of state workers' compensation systems.
Two departments declined to include the model's workers comp language in their regulations, and a third was forced to back off by a legislative oversight committee.
A fourth wisely drafted, introduced and obtained passage of legislation to implement GLB, and declined to expand its law into this area. Many similar bills are working their way through their respective legislatures.
State legislators have begun asserting their rightful roles in the process. Two legislative oversight committees have questioned the over-reaching nature of the NAIC model regulation, in one case forcing the removal of workers comp language indicated earlier.
We at the Alliance of American Insurers expect more rulings of this sort.
In addition, a competing model bill, drafted by the National Conference of Insurance Legislators, has been introduced in six states. The NCOIL model bill more closely follows the letter and spirit of GLB, while avoiding the excess baggage that makes the NAIC model regulation so costly and unworkable.
The Alliance is pleased that common sense is gaining momentum in the privacy debate.
For those departments still planning to publish regulations, we urge them to join the growing list of states that are avoiding the costly and premature morass of health and workers comp privacy regulation.
Reynold E. Becker
V.P. of Property-Casualty
Alliance of American Insurers
Downers Grove, Ill.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, June 11, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.