September 27, 2018
Last Thursday, the House Financial Services Committee passed a data security notification bill. Opposed by both the NAIC and the Board of State Bank Supervisors, the bill “would direct federal financial regulatory agencies to establish a national standard for financial institutions regarding data security measures, as well as a notification system that responds to any breach or unauthorized access of customer information,” according to Business Insurance. The NAIC opposed the bill, as stated in a letter to the Committee, because it would “broadly preempt all state laws and regulations and prohibit states, the primary regulators of the insurance sector, from imposing any stronger requirements for insurance consumer protection.”
However, even if the bill makes it past the House, it is unlikely it would become law. There is currently no companion legislation in the Senate with congressional elections right around the corner.