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NAIC Working Group Adopts "Report on Improving Privacy Notices"

During the National Association of Insurance Commissioners' (NAIC) spring 2003 meetings in Atlanta, the Privacy Notice Subgroup of the Privacy Issues Working Group adopted its...
March 12, 2003

During the National Association of Insurance Commissioners' (NAIC) spring 2003 meetings in Atlanta, the Privacy Notice Subgroup of the Privacy Issues Working Group adopted its "Report on Improving Privacy Notices," that details specific suggestions for making reports clearer and more consumer-friendly.

The Gramm-Leach-Bliley Act required that privacy notices be sent to consumers starting in July 2001. Many consumers have complained that the notices are hard to understand because they are written in "legalese." The NAIC effort is designed to help create notices that comply with the law, but are also more easily understood by consumers and more consistent across companies.

The suggestions are not mandatory or "best practices." Rather, they are recommendations that insurance regulators desire insurers use as a guide for improving their current notices. The report includes sample notice provisions, introductory language explaining the meaning and purpose of the notice, and other suggestions for making privacy notices simpler, shorter and more understandable.

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