The National Association of Insurance Commissioners (NAIC) is a US-based non-profit organization governed by the chief insurance regulators from the 50 states, the District of Columbia, and five US territories. In addition to preserving the financial security and solvency of the insurance business, one of NAIC’s main goals is to advance and safeguard the interests of insurance consumers by developing model laws for passage by the state legislatures. One of the several model laws developed by the NAIC to safeguard consumer data privacy and protection is the Privacy of Consumer Financial and Health Information Regulation (Model 672).
Model 672 regulates the handling of nonpublic personal financial information and nonpublic personal health information of individuals (protected private information) by insurers licensed, authorized, or registered under state insurance laws (licensees). Under Model 672, the licensees are required to provide the individuals with privacy notices, comply with different disclosure requirements with respect to the protected private information of individuals, and provide the individuals with opt-out notices to enable them to prevent the disclosure of their information.
Model 672 has been adopted by several US states, including Alabama, Alaska, California, Colorado, Connecticut, Delaware, Florida, Kentucky, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, South Carolina, Texas, Tennessee, Utah, Vermont, Washington, and others.
