Connecticut Ready To Draw Privacy Regs
By Jim Connolly, NU Life-Health Senior Editor
NU Online News Service, May 14, 9:02 a.m. EST?A new law has empowered Connecticut Insurance Commissioner Susan Cogswell to draw up financial services privacy regulations conforming with the requirements of the Federal Gramm-Leach-Bliley Act.
The measure, signed into law last week by Gov. John Rowland, corrects a legal loophole that had snagged earlier Connecticut efforts at privacy regulation.
Ms. Cogswell's draft of regulations is expected to be ready for review within two weeks.
Public Act No. 02-40, was approved by the Legislature on May 8.
Commissioner Cogswell's privacy regulation is due to be reviewed by the Assembly's Legislative Review Committee May 28, according to Leslie Wolfgang, counsel for the state insurance department.
Last year, the department had proposed a regulation to conform to privacy requirements under GLB, but research by the committee determined that the commissioner lacked the power to implement such regulations.
The regulation would track the National Association of Insurance Commissioners' privacy model regulation. It covers privacy of financial information, but does not control privacy of health information.
The American Insurance Association, Washington, issued a statement saying that it supports the proposed regulation because it will help create uniformity for privacy regulations.
In a separate but related matter, Michael Moran, an AIA spokesman, said that pre-trial depositions are underway in a suit filed by insurance trade groups against Vermont privacy regulations.
The trade organizations contend the Vermont Department of Banking, Insurance, Securities and Health Care Administration exceeded its authority in promulgating privacy regulations that go beyond the requirements of GLB.
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