insurance information;
privacy protection
SB 1288 does several things to conform to the standards of the Graham Leach Bliley Act (GLBA). Notice of policy renewal must be given at least once a year and notice of reinstatement is not required if notice was given in the previous year. Notice may be provided electronically. The Department is given any additional broad powers to enforce statutes relating to the GLBA.
Congress passed the Graham Leach Bliley Act (GLB) in 1999. The Act permits banks and insurance companies to transact the others’ business. State financial institutions must preserve privacy standards. Arizona is one of fifteen states to have laws on consumer privacy and financial and medical information; this state has stricter privacy laws than GLB’s standards. Statute currently prohibits insurance companies from sharing a consumer’s medical or financial information unless the consumer “opts-in,” and gives the institution permission to release the information to entities non-affiliated with the financial holding company. SB 1288 is an effort to conform Arizona law to GLB standards.