NOTICES
Standards for Safeguarding Customer Information; Advanced Notice of Proposed Rulemaking
[32 Pa.B. 5595] The Insurance Department (Department) is seeking input on a preproposed rulemaking from the various trade groups and individuals that comprise the insurance industry.
This preproposed rulemaking is needed to implement the remaining privacy requirements for nonpublic financial and health information set forth in Title V of the Gramm-Leach-Bliley Act (GLBA) (15 U.S.C.A. §§ 6801--6827) following the Department's implementation of Chapter 146a (relating to privacy of consumer financial information) published at 31 Pa.B. 4426 (August 11, 2001) and 31 Pa. Code Chapter 146b (relating to privacy of consumer health information) published at 32 Pa.B. 5268 (October 26, 2002).
Title V of the GLBA requires various state and Federal regulators of the financial services industries to promulgate regulations for their respective regulated communities. For example, state insurance authorities are required by Title V of the GLBA to establish appropriate consumer privacy standards for various entities in the insurance industry. The failure of a state to adopt privacy regulations could result in the state's inability to override the Federal insurance consumer protection regulations that were issued by the Federal banking agencies in final form on December 4, 2000, under section 305 of the GLBA (15 U.S.C.A. § 6805). See 65 FR 233, 75821 (to be codified at 12 CFR Parts 14, 208, 343 and 536). These regulations became effective on April 1, 2001, and they pertain generally to the sale of insurance by financial institutions and specifically to matters such as referral fees, separation of banking and insurance sales areas and disclosures regarding the nature of insurance products that are sold by banks.
The purpose of this rulemaking is to implement the remaining requirements of Title V of the GLBA relating to the internal safeguarding of customer information maintained by a licensee. Accordingly, this proposal is based upon the NAIC Standards for Safeguarding Customer Information Model Regulation.
The Department will review the comments for the drafting of the proposed rulemaking, which will be published in the Pennsylvania Bulletin after the legislative committees are formed in 2003.
Copies of this advanced proposal may be obtained from the Department is asking that comments on this advanced proposed rulemaking be sent in writing to Peter J. Salvatore, Regulatory Coordinator, Insurance Department, 1326 Strawberry Square, Harrisburg, PA 17120. The Department is asking that all comments be sent to Pete Salvatore within 30 days following the publication of this notice in the Pennsylvania Bulletin. Questions and comments may also be e-mailed (preferred method) to psalvatore@state.pa.us or faxed to (717) 772-1969.
M. DIANE KOKEN,
Secretary
[Pa.B. Doc. No. 02-2026. Filed for public inspection November 8, 2002, 9:00 a.m.]
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