1. © 2004 Property Casualty Insurers Association of America The Alphabet of Federal Legislation Kathleen Jensen Property and Casualty Insurers Association of America

2. © 2004 Property Casualty Insurers Association of America 1916 National Bank Act 1929 Stock Market Crash 1945 McCarran Ferguson Act 1996 HIPAA 1999 Financial Modernization Act Gramm Leach Bliley Timeline of Federal Insurance Regulation 2001 Sept 11 US Patriot Act 2003 Fact Act 1979 OFAC 1970 FCRA

3. © 2004 Property Casualty Insurers Association of America Insurance and Federal Regulations n Credit – FCRA – FACT Act n Privacy – GLBA – HIPAA n Terrorism – OFAC – USA PATRIOT Act

4. © 2004 Property Casualty Insurers Association of America FCRA Fair Credit Reporting Act n Allows a consumer reporting agency to furnish a consumer report if used in connection with the underwriting of insurance involving a consumer n Requires “adverse action” notices n Prohibits States from imposing requirements or prohibitions regarding the use of credit n Allows affiliate sharing

5. © 2004 Property Casualty Insurers Association of America FACT Act - Fair & Accurate Credit Transactions Act n Reauthorized FCRA with changes n Proposed Rules – Affiliate Sharing – Prescreening n Congressional Mandated Study The effects of credit scores and credit based insurance scores on availability and affordability of financial products

6. © 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

7. © 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

8. © 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

9. © 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

10. © 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

11. © 2004 Property Casualty Insurers Association of America What’s to Come? Anything from A - Z!