Insurance Data Protection Act
12/28/2024, 12:53 AMSummary of Bill HR 5535
The Insurance Data Protection Act, also known as Bill 118 hr 5535, is a piece of legislation currently being considered by the US Congress. The main purpose of this bill is to enhance the protection of sensitive personal information held by insurance companies.If passed, the Insurance Data Protection Act would require insurance companies to implement stronger data security measures to safeguard the personal information of their policyholders. This includes measures such as encryption, access controls, and regular security audits to prevent data breaches and unauthorized access.
Additionally, the bill would establish guidelines for notifying individuals in the event of a data breach, ensuring that affected individuals are promptly informed of any potential risks to their personal information. This transparency is crucial in helping individuals take necessary steps to protect themselves from identity theft and other forms of fraud. Overall, the Insurance Data Protection Act aims to strengthen data security practices within the insurance industry, ultimately enhancing consumer trust and confidence in the protection of their personal information. This bill is an important step towards ensuring that individuals' sensitive data is safeguarded from potential cyber threats and unauthorized access.
Congressional Summary of HR 5535
Insurance Data Protection Act
This bill limits the ability of federal entities to compel insurance companies to share information.
Specifically, the bill eliminates the subpoena power of the Federal Insurance Office. Under current law, the office has the power to subpoena information from insurers to, among other purposes, identify issues that could contribute to a systemic crisis in the insurance industry or the U.S. financial system.
The bill also eliminates the ability of the Office of Financial Research to subpoena insurance companies.
When seeking to collect insurance company data under specified consumer protection laws, a financial regulator must obtain the data from other regulators or from publicly available sources if possible. Otherwise, the financial regulator may only collect this data directly from the insurance company if it complies with the Paperwork Reduction Act.
