Insurance: other; data security enforcement; modify. Amends secs. 553, 561 & 563 of 1956 PA 218 (MCL 500.553 et seq.) & adds secs. 564 & 564a.
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Progress
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- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill amends Michigan’s insurance code to strengthen data security enforcement for insurance companies and producers. It clarifies definitions related to cybersecurity events, nonpublic information, and data security programs. Specifically, it adds new sections outlining requirements for notifying residents of cybersecurity breaches, establishing a process for determining whether to notify residents, and detailing the information that must be included in those notifications. The bill also addresses confidentiality protections for the Department of Insurance and Financial Services related to investigations and examinations.
Key provisions
- Defines key terms like ‘Authorized Individual,’ ‘Consumer,’ ‘Cybersecurity Event,’ and ‘Nonpublic Information’ to clarify data security requirements.
- Requires insurers to notify residents if their personal information is accessed in a cybersecurity event, with exceptions for events deemed not likely to cause substantial harm.
- Establishes procedures for providing notifications, including electronic and telephone options, and outlines specific content requirements for those notifications.
- Creates a process for the Department of Insurance and Financial Services to examine and investigate licensees for compliance with data security regulations.
- Adds a provision for fines for licensees who violate the data security requirements outlined in the bill.
- Clarifies that certain disclosures related to cybersecurity events are exempt from the Freedom of Information Act.
- Addresses confidentiality protections for documents and materials related to investigations and examinations conducted by the Department of Insurance and Financial Services.
Bill text
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