An Act Concerning The Insurance Department's Recommendations Regarding The Public Health Fee, Third Party Performance Of The Department's Employees' Duties, The Insurance Data Security Law And Assessments Against Domestic Insurance Companies And Entities.
Impact
The passage of HB05365 will necessitate significant changes for domestic insurers and health care centers in Connecticut. It introduces stricter reporting requirements concerning the number of insured lives and mandates the submission of annual compliance reports related to information security. Additionally, it allows the Insurance Commissioner to impose late fees and civil penalties for noncompliance, reflecting a more stringent regulatory environment designed to bolster consumer protection in the face of increasing cybersecurity threats.
Summary
House Bill HB05365, known as 'An Act Concerning The Insurance Department's Recommendations Regarding The Public Health Fee, Third Party Performance Of The Department's Employees' Duties, The Insurance Data Security Law And Assessments Against Domestic Insurance Companies And Entities', seeks to reform and update existing insurance laws in Connecticut. The bill emphasizes the creation of a more robust information security program mandated for all domestic insurers and health care centers, highlighting the responsibility of these entities to protect nonpublic information and to manage risks associated with cybersecurity events. The Insurance Department will be given enhanced authority to oversee these obligations and report findings to ensure compliance.
Contention
Discussion surrounding HB05365 reveals a range of opinions. Proponents argue that the bill is essential for updating Connecticut's insurance regulatory framework to better address the modern challenges of cybersecurity. However, critics voice concerns about the potential burdens placed on smaller insurance providers, who may struggle to meet the new compliance requirements without incurring substantial costs. Balancing effective oversight with the operational capabilities of insurers is a point of contention in legislative discussions.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.