In response to trends, heightened public awareness, and a string of large-scale data breaches, states continue to enhance their data breach notification laws. Illinois Governor J.B. Pritzker recently signed into law an amendment to the Personal Information Protection Act (PIPA), SB 1624, effective January 1, 2020. PIPA will now require that most “data collectors,”
Expansion of Technology at K-12 Schools Comes with Data Security Risks for Students and Parents
A new school year is upon us and some students are already back at school. Upon their return, many students may experience new technologies and equipment rolled out by their schools districts, such as online education resources, district-provided equipment, etc. to enhance the education they provide and improve district administration. However, a recent report, “
New Notification Requirements in New York for Healthcare Providers Facing a Cybersecurity Incident
On August 12, Mahesh Nattanmai, New York’s Chief Health Information Officer, issued a notice letter (“the notice”) on behalf of the New York State Department of Health (“Department”) requiring healthcare providers to use a new notification protocol for informing the Department of a potential cybersecurity incident. The updated protocol is considered effective immediately from a
Licensed by Your State’s Insurance Commissioner? Comprehensive Data Security Requirements Are Headed Your Way
Most businesses in the insurance industry have one thing in common – they collect and maintain significant amounts of sensitive, nonpublic information including personal information. Not surprisingly, insurance-related businesses are a target of cyberattacks and a few have faced some of the largest data breaches reported to date. Beyond the headlines, however, small and mid-sized insurance companies face similar risks, and governments have stepped up their scrutiny of cybersecurity. Hearing the calls for legislation and regulation, the National Association of Insurance Commissioners (NAIC) adopted a Data Security Model Law with the goal of having it adopted in all states within a few years. So far, eight states (see below) have adopted a version of the Model Law and it looks like more are on the way.
What is the NAIC’s Data Security Model Law?
In an effort that largely began with establishing a task force in 2014, the NAIC adopted a Data Security Model Law in November 2017. The Model Law is intended to provide a benchmark for any cybersecurity program. The requirements in the Model Law track some familiar data security frameworks, such as the HIPAA Security Rule. It also has many similarities to the New York State Department of Financial Services (NYDFS) regulations (specifically the 23 NYCRR 500). Note that licensees are not subject to the Model Law unless the state where that licensee is licensed adopts a version of the Model Law. At that time, the licensee must comply with that law.
Who is Subject to the Model Law?
The Model Law generally applies to “Licensees,” defined as:
any person licensed, authorized to operate, or registered, or required to be licensed, authorized, or registered pursuant to the insurance laws of this State but shall not include a purchasing group or a risk retention group chartered and licensed in a state other than this State or a Licensee that is acting as an assuming insurer that is domiciled in another state or jurisdiction.
Licensees range from large insurance carriers to small independent adjusters. These include individuals providing insurance related services, firms such as agency and brokerage businesses, and insurance companies. Additionally, there may be business that require a license, but are not traditionally considered to be in the insurance business. Examples include car rental companies and travel agencies that offer insurance packages in connection with their primary business.
The Model Rule provides exceptions for certain licensees. For example, licensees with fewer than ten employees (including independent contractors) are exempt from the requirement to maintain an information security program. However, they remain subject to the other provisions in the Model Law, such as the requirement to provide notification in the case of certain cybersecurity events.
What are some of the requirements of the Model Law?
Continue Reading Licensed by Your State’s Insurance Commissioner? Comprehensive Data Security Requirements Are Headed Your Way
New York Enacts the SHIELD Act
On Thursday, New York Governor Andrew Cuomo signed into law the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act), sponsored by Senator Kevin Thomas and Assemblymember Michael DenDekker. The SHIELD Act, which amends the State’s current data breach notification law, imposes more expansive data security and data breach notification requirements on companies, in
Illinois’ Attorney General Wants to Know About Data Breaches
Possibly adding to the list of states that have updated their privacy and breach notification laws this year, the Illinois legislature passed Senate Bill 1624 which would update the state’s current breach notification law to require most “data collectors,” which includes entities that, for any purpose, handle, collect, disseminate, or otherwise deal with nonpublic personal
Oregon Amends Data Breach Notification Law to Include Vendor Obligations; Expanded Definition of Personal Information
As we recently noted, Washington state amended its data breach notification law on May 7 to expand the definition of “personal information” and shorten the notification deadline (among other changes). Not to be outdone by its sister state to the north, Oregon followed suit shortly thereafter—Senate Bill 684 passed unanimously in both
Sweeping Privacy Changes Stall in the Lone Star State
Per our earlier blog post, Texas was ambitious this legislative session when it proposed two consumer data privacy bills. Both bills made it through committee hearings, but only one made it to the governor’s desk for signature: HB 4390. However, even it arrived there very different than originally drafted.
HB 4390, dubbed the
Washington Overhauls its Data Breach Notification Law
As we noted last month, Washington’s efforts to follow California’s lead in passing its own GDPR-like law have stalled after the bill failed to make its way through the state’s House of Representatives—despite overwhelming approval in the Senate (where it passed 46-1). That bill’s sponsor has promised to revisit the issue during
New Jersey’s Data Breach Notification Amendment Signed into Law
On May 10, Governor Phil Murphy signed into law P.L.2019, c.95. an amendment enhancing New Jersey’s data breach notification law by expanding the definition of personal information, and updating notification requirements. As we previously reported, the amendment was unanimously approved by the New Jersey General Assembly and Senate in late February.
New Jersey’s data