Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB543

Introduced
2/6/23  
Refer
2/7/23  
Report Pass
2/21/23  
Engrossed
3/21/23  
Refer
3/29/23  

Caption

Insurance; creating the Insurance Data Security Act. Effective date.

Impact

The implementation of the Insurance Data Security Act will have significant implications for state laws pertaining to the insurance industry. The act provides the Insurance Commissioner with enhanced authority to oversee and investigate licensees for compliance with data security provisions. It also sets forth specific requirements for incident reporting, which aim to ensure prompt notifications to consumers and regulatory authorities in the event of a data breach. Additionally, it creates a catalog of standards that all licensees must adhere to, effectively creating a uniform approach to cybersecurity across the state’s insurance sector.

Summary

Senate Bill 543 establishes the Insurance Data Security Act, which is aimed at improving the security of nonpublic information held by licensed insurers and insurance producers in Oklahoma. The act mandates that licensees develop and maintain a comprehensive information security program, conduct regular risk assessments, and implement appropriate security measures. It also requires that licensees report cybersecurity events to the Insurance Commissioner within a specified timeframe. This legislation addresses increasing concerns over cybersecurity risks in the insurance sector by setting a statutory framework for data protection and incident response.

Sentiment

The general sentiment surrounding the passage of SB543 appears to be positive among stakeholders who value enhanced data security measures. Proponents argue that it is essential for protecting sensitive consumer information and addressing growing cybersecurity threats. However, there are concerns voiced by some groups about the adequacy of the measures provided in the act, especially regarding exemptions for smaller licensees and the potential for confusion over compliance standards. The debate reflects a broader discussion about balancing regulatory oversight with ensuring that the insurance industry can operate effectively without excessive constraints.

Contention

Notable points of contention focus on the exemptions provided in the act, particularly for licensees with less than $5 million in annual revenue. Critics argue that such exemptions may undermine the overall effectiveness of the act by leaving potentially vulnerable entities unregulated. Furthermore, the bill does not create a private right of action for consumers whose data may be compromised, which some advocates believe is necessary for greater accountability and deterrence against violations. This aspect of the bill has sparked discussions about the appropriate level of consumer protection versus the necessity of regulatory simplicity.

Companion Bills

No companion bills found.

Previously Filed As

OK SB543

Insurance; creating the Insurance Data Security Act. Effective date. Emergency.

OK HB1498

Insurance; prepaid funeral services; permit; application; Insurance Commissioner; violations; penalties; examination; repealer; effective date.

OK SB1242

Insurance; modifying actions to be taken by captive insurance company; updating statutory language. Effective date.

OK HB474

AN ACT relating to insurance data security.

OK HB1160

Insurance; Oklahoma Property and Casualty Insurance Guaranty Association; powers and duties; joining organizations; records; effective date.

OK S2744

Insurance Data Security Act

OK H7777

Insurance Data Security Act

OK SB1153

Health insurance; creating Health Insurance Mandate Legislation Actuarial Analysis Act. Effective date.

OK HB4433

INSURANCE DATA SECURITY LAW

OK HB946

Relating To Insurance Data Security.

Similar Bills

OK SB543

Insurance; creating the Insurance Data Security Act. Effective date. Emergency.

KY HB474

AN ACT relating to insurance data security.

HI HB946

Relating To Insurance Data Security.

LA HB614

Provides relative to data security for persons regulated by the commissioner of insurance

CT SB00903

An Act Concerning Insurance Data And Information Security.

RI H7777

Insurance Data Security Act

RI S2744

Insurance Data Security Act