FOR RELEASE ON RECEIPT 10/3/2000 NCOIL Privacy Model Ranks as 'Best Fit' to Federal Law; NAII Testifies It Will Support Model In State Legislatures DES PLAINES, Ill — A privacy model law being developed by the National Conference of Insurance Legislators (NCOIL) is more consistent with requirements spelled out in the federal Financial Services Modernization Act and will be supported by member companies of the National Association of Independent Insurers (NAII). "NAII members have indicated that they support the NCOIL privacy model regulation because it is succinct, provides guidance on privacy concerns of insurers and consumers, and offers the most workable approach to health privacy information for property-casualty insurance companies," NAII Vice President Robert Zeman said at NCOIL's recent Chicago meeting. "The model regulation recently adopted by the National Association of Insurance Commissioners (NAIC) leaps beyond the requirements mandated by the Gramm-Leach-Bliley Act, particularly in the area of health information privacy. NAII membership finds the NCOIL model preferable to the NAIC model since NCOIL's draft more closely tracks Gramm-Leach-Bliley." Zeman explained that the health provisions attached to the NAIC privacy model exceeded requirements in the Gramm-Leach-Bliley Act and could be inconsistent with regulations expected to be finalized by the Health and Human Services Administration (HHS) in early November. The NAII submitted comments to NCOIL at its September 28 meeting in conjunction with the Alliance of American Insurers, the Health Association of America and Blue Cross-Blue Shield. The NAII will provide additional recommendations for the NCOIL model regulation by its October 13 deadline. "As legislators interested in the economic development and well being of your states, it is important that a 'parity' exists between the three branches of the financial services industry—banks, insurers and securities, " Zeman told NCOIL members. "NAII appreciates that NCOIL recognized this broader objective and created a model that is consistent and uniform with federal rules to implement and enforce Gramm-Leach-Bliley." The NAII, located in suburban Chicago, is a full–service, national trade association representing more than 675 members that write more than 33 percent of the property-casualty insurance nationwide. ©NAII, 2002. All Rights Reserved. For Internal and NAII Member Company Use Only. NAII Copyright Notice | Legal Disclaimer | Legal Disclaimer Concerning Links |