NAIC Privacy Protections Working Group’s Path Forward

Yesterday, the Privacy Protections (H) Working Group of the National Association of Insurance Commissioners (“NAIC”) held its first meeting since the Spring National Meeting in March. The working group seeks public comment on its path forward as it reconsiders its options for revising the NAIC’s existing privacy framework. Multiple options are being considered. Firstly, should the working group continue the work it paused last year on the proposed unitary privacy model #674[1]? Alternatively, should the working group revise either or both of the existing privacy models #670[2] and/or #672[3]? Additionally, a coalition of industry trade associations, ACLI, AHIP, APCIA, NAMIC, and the Big I[4], submitted to the working group their own proposed model act revising the preexisting model regulation #672.[5] Presumably, this revised model would replace the prior proposed model #674 as a unitary privacy model for all licensed insurance entities and insurance lines of business. The public comment period for these questions and the proposed industry draft is two weeks, expiring Thursday May 30. The working group will meet in closed session on June 6 to discuss received comments and will convene a public meeting on Wednesday June 12 to discuss comments received on the working group’s path forward.

Last summer, the working group paused its work on draft 1.2 of the proposed unified privacy model act #674 as multiple states publicly announced that they would not support the draft. Since then, the working group obtained an extension of its charge to update the privacy framework and has moved slowly since. For instance, over the fall and winter the working group discussed with industry specific concerns and at yesterday’s meeting the working group heard a presentation on the state and federal privacy law landscape.

Locke Lord will continue to monitor developments at the working group. If you have any questions, please reach out to the author or your Locke Lord partner.

See also last summer’s NAIC’s Work on Privacy Model Grinds On and NAIC Picking Up Steam as it Drafts New Privacy Model.

[1] Insurance Consumer Privacy Protection Model Law (#674).

[2] Insurance Information and Privacy Protection Model Act (#670).

[3] Privacy of Consumer Financial and Health Information Regulation (#672).

[4] American Council of Life Insurers, America’s Health Insurance Plans, American Property Casualty Insurance Association, National Association of Mutual Insurance Companies, and the Association for Independent Agents.

[5] A copy was circulated directly to participants. A copy should be uploaded to the working group website imminently.