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NAIC Passes Data Security Model Law

A version of the model is expected to be introduced in several state legislatures in early 2018.
October 24, 2017

On October 24, the National Association of Insurance Commissioners (NAIC) approved its long-awaited Insurance Data Security Model Law. A version of the model is expected to be introduced in several state legislatures, including South Carolina and Vermont, in early 2018.

“The model sets forth specific steps that licensed individuals and businesses in the insurance industry must take to protect themselves against cyberattacks,” said Lauren G. Pachman, Esq., PIA National Counsel and Director of Regulatory Affairs. “Whether the measure becomes an accreditation standard, which refers to a framework through which state insurance departments encourage insurance entities to maintain sound financial solvency standards, remains to be seen.”

“Considering the recent series of data breaches, cybersecurity is more important now than ever,” said Ted Nickel, NAIC President and Wisconsin Insurance Commissioner. “Regulators have a critical role to play in protecting consumers as the cyber landscape continues to evolve and this model law sets cybersecurity customs for insurers to help safeguard consumers.”

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