The Alphabet of Federal
Legislation
Kathleen Jensen
Property and Casualty Insurers
Association of America
© 2004 Property Casualty Insurers Association of America
Timeline of Federal
Insurance Regulation
1916
1929
1945
1970 1979
1996
1999
2001
Sept 11
National Bank Act
2003
Fact Act
OFAC
Stock Market Crash
FCRA
McCarran Ferguson Act
© 2004 Property Casualty Insurers Association of America
US Patriot Act
HIPAA
Financial Modernization Act
Gramm Leach Bliley
Insurance and
Federal Regulations

Credit
– FCRA
– FACT Act

Privacy
– GLBA
– HIPAA

Terrorism
– OFAC
– USA PATRIOT Act
© 2004 Property Casualty Insurers Association of America
FCRA
Fair Credit Reporting Act



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Allows a consumer reporting agency to
furnish a consumer report if used in
connection with the underwriting of
insurance involving a consumer
Requires “adverse action” notices
Prohibits States from imposing
requirements or prohibitions regarding
the use of credit
Allows affiliate sharing
© 2004 Property Casualty Insurers Association of America
FACT Act - Fair & Accurate
Credit Transactions Act

Reauthorized FCRA with changes

Proposed Rules
– Affiliate Sharing
– Prescreening

Congressional Mandated Study
The effects of credit scores and credit based
insurance scores on availability and
affordability of financial products
© 2004 Property Casualty Insurers Association of America
GLBA
Gramm Leach Bliley Act
Financial Institutions are prohibited from
disclosing non-public personal financial
information to a non-affiliated third party
outside of an exception.
– Requires Notice
– Requires Opt-out
– Requires Standards for Safeguarding
© 2004 Property Casualty Insurers Association of America
Security Breach Legislation
Data collectors required to notify
individuals when there has been a
breach of the security of a system that
contains personal information.
– What?
– When?
– 19 States
© 2004 Property Casualty Insurers Association of America
HIPAA - Health Insurance
Portability and Accountability Act
Provides for the maintenance of privacy
and confidentiality of individually
identifiable health information
– Applies only to Health Insurers
– Requires authorization
– Restricts disclosure
– Requires health information security
– Adopts code sets for standard transactions
© 2004 Property Casualty Insurers Association of America
OFAC - Office of Foreign
Asset Control
Prohibits every commercial entity from
transacting business with anyone
identified on the Specially Designated
Nationals (SDN) list
– Verify every policyholder, claimant, agent,
vendor, and employee against SDN list
– Freeze policy/funds for individual
© 2004 Property Casualty Insurers Association of America
USA PATRIOT Act - Uniting and
Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism
Requires financial institutions to assist
the federal government in the
prevention, detection, and prosecution
of money laundering.
– Applies only to Life Insurers
– Maintain “payment information”
– Report on Form 8300 cash receipts totaling
more than $10,000
– File suspicious activity reports
© 2004 Property Casualty Insurers Association of America
What’s to Come?
Anything from A - Z!
© 2004 Property Casualty Insurers Association of America