DAR File No. 41955

Insurance, Administration

Rule R590-205

Privacy of Consumer Information Compliance Deadline

Notice of Proposed Rule

(Repeal)

DAR File No.: 41955
Filed: 07/28/2017 10:38:28 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Insurance Department recently amended Rule R590-206, Privacy of Consumer Financial and Health Information Rule, which included the compliance deadline within it. That amendment made Rule R590-205 unnecessary. (EDITOR'S NOTE: A proposed amendment under Filing No. 41296 for Rule R590-206 was published in the March 1, 2017, Bulletin and a connected change in proposed rule under Filing No. 41296 for Rule R590-206 was published in the June 1, 2017, Bulletin and both were made effective on 07/11/2017.)

Summary of the rule or change:

The rule is being repealed in its entirety.

Statutory or constitutional authorization for this rule:

• Section 31A-2-202
• Section 31A-2-201
• 15 U.S.C. 6805

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or savings to the state budget because the requirement contained in the rule is now covered under Rule R590-206.

local governments:

There is no anticipated cost or savings to local government because the requirement contained in the rule is now covered under Rule R590-206.

small businesses:

There is no anticipated cost or savings to small business because the requirement contained in the rule is now covered under Rule R590-206.

persons other than small businesses, businesses, or local governmental entities:

There is no anticipated cost or savings to any other persons because the requirement contained in the rule is now covered under Rule R590-206.

Compliance costs for affected persons:

There are no compliance costs for affected persons because the requirement contained in the rule is now covered under Rule R590-206.

Comments by the department head on the fiscal impact the rule may have on businesses:

I: IDENTIFY WHETHER THE PROPOSED RULE WILL HAVE A FISCAL IMPACT TO BUSINESS � The repeal of this rule removes a surplus version of the same requirement that is now contained in R590-206, Privacy of Consumer Financial and Health Information Rule. The requirement still exists, just in a different rule; therefore, the net effect is zero. After conducting a thorough analysis, it was determined that this proposed rule will not result in a fiscal impact to businesses. PARTS II-IV are unnecessary because there is no fiscal impact. PART V: DEPARTMENT HEAD'S COMMENTS ON THE ANALYSIS � The department conducted a thorough analysis of the impact that this repeal will have on businesses. The net effect of the repeal is zero, due to the requirement still existing in another rule. There is no fiscal impact on any businesses as a result of this repeal.

Todd E. Kiser, Insurance Commissioner

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Steve Gooch at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

09/14/2017

This rule may become effective on:

09/21/2017

Authorized by:

Steve Gooch, Information Specialist

R590. Insurance, Administration.

[R590-205. Privacy of Consumer Information Compliance Deadline.

R590-205-1. Authority.

This rule is promulgated pursuant to Subsections 31A-2-202(1), 31A-2-201(2) and 31A-2-201(3)(a) in which the commissioner is empowered to administer and enforce Title 31A, to perform duties imposed by Title 31A and to make administrative rules to implement the provisions of Title 31A. Furthermore, Title V, Section 505, 15 U.S.C. 6805, empowers the Utah Insurance Commissioner to enforce Subtitle A of Title V of the Gramm - Leach - Bliley Act of 1999, 15 U.S.C. 6801 through 6820. Title V, Section 505, 15 U.S.C. 6805(b)(2), authorizes the commissioner to issue rules to implement the requirements of Title V, Section 501(b) of the federal act.

 

R590-205-2. Purpose.

The purpose of this rule is provide an extension to persons and entities under the jurisdiction of the Utah Insurance Department that are required to adopt policies, procedures, and controls to prevent the unauthorized disclosure of personal nonpublic information relating to their customers under Title V of the Gramm - Leach - Bliley Act of 1999, 15 U.S.C. 6801 through 6827. The extension would give such persons and entities time to comply with the requirements of Title V of the Gramm - Leach - Bliley Act of 1999, 15 U.S.C. 6801 through 6827.

A further purpose of the rule is to avoid the application of Title V, Section 505(c) of the Gramm - Leach - Bliley Act of 1999 that provides that if a state fails to adopt regulations to implement Title V of the federal act, the State shall not be eligible to override any federal insurance customer protections prescribed by a Federal Banking Agency.

 

R590-205-3. Applicability and Scope.

This rule shall apply to all insurers, producers, and other persons licensed or required to be licensed or required to be authorized, registered or required to be registered or domiciled in Utah pursuant to the Utah Insurance Code. It also applies to unauthorized insurers who accept business through a licensed surplus line broker in Utah, if the surplus line placements are placed pursuant to Section 31A-15-103.

 

R590-205-4. Definitions.

For the purposes of this rule the commissioner adopts the following definitions:

(1) "Utah Insurance Code" means Title 31A of the Utah Code.

(2) "Licensee" means all insurers, producers, and other persons licensed or required to be licensed or required to be authorized, registered or required to be registered or domiciled in Utah pursuant to the Utah Insurance Code, including but not limited to unauthorized insurers who accept business through a licensed surplus line broker in Utah, if the surplus line placements are placed pursuant to Section 31A-15-103.

 

R590-205-5. Enforcement.

Title V of the Gramm-Leach-Bliley Act of 1999, 15 U.S.C. 6801 through 6827 shall be enforced by the commissioner with respect to all licensees of the department.

 

R590-205-6. Compliance Date.

In order to provide sufficient time for licensees to establish policies, procedures and controls relating to the use and disclosure of personal nonpublic information of their customers and to comply with the requirements of Title V of the Gramm-Leach-Bliley Act of 1999, 15 U.S.C. 6801 through 6827, effective November 13, 2000, the commissioner extends the time for compliance for all licensees to July 1, 2001.

 

R590-205-7. Severability.

If any provision or clause of this rule or its application to any person or situation is held invalid, such validity shall not affect any other provision or application of this rule which can be given effect without the invalid provision or application, and to this end the provisions of this rule are declared to be severable.

 

KEY: insurance law privacy

Date of Enactment or Last Substantive Amendment: January 11, 2001

Notice of Continuation: December 4, 2015

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-2-202; 15 U.S.C 6805]