Regulators, insurers struggle with privacy. (Confidental).State insurance commissioners are still working on changes to a model privacy regulation to make the language more understandable, and industry advocates are trying to make sure those changes don't expose them unnecessarily to lawsuits.
The National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. said consumers were complaining that the notices they receive from insurers regarding the protection of their personal financial information were too complicated to understand.
Those notices became a requirement under the Gramm-Leach-Bliley Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. Modernization modernization
Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, Act, and they're included, for example, when insurers send out policy renewals.
An NAIC NAIC
See National Association of Investors Corporation (NAIC). task force was formed to come up with new language for its model regulation, but when the task force met during the Winter National Meeting in Chicago, it decided to form another subgroup sub·group
1. A distinct group within a group; a subdivision of a group.
2. A subordinate group.
3. Mathematics A group that is a subset of a group.
tr.v. to look at whether to designate this sample language "best practices" or a "safe harbor Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. ."
Insurers have spent lots of time and money preparing and sending out these notices since Gramm-Leach-Bliley was enacted. Adopting changes as "best practices" makes it mandatory that companies use whatever language is in the NAIC sample, said Kathleen Jensen, insurance services counsel for the National Association of Independent Insurers.
Even if the notice complies with Gramm-Leach-Bliley, an insurance company could be sued for deviating from a "best practices" model, forcing companies to change the notices, Jensen said.