Bulletin 2000-12 Deadline for Complying with Article V of the Gramm-Leach-Bliley Act

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South Carolina

JIM HODGES

Department of Insurance

Governor

300 Arbor Lake Drive, Suite 1200

Columbia, South Carolina 29223

ERNST N. CSISZAR

Director of Insurance

Mailing Address:

P.O. Box 1001 05, Columbia, S.C. 29202-3105

Telephone: (803) 737-6160

BULLETIN 2000-12

(Issued upon November 3, 2000)

TO:

All Persons Authorized to Transact the Business of Insurance in South

Carolina

FROM:

Ernst N. Csiszar

RE:

Deadline for Complying with Article V of the Gramm-Leach-Bliley Act

DATE:

November 3, 2000

Purpose

This Bulletin extends the date for persons licensed by the South Carolina

Department of Insurance to comply with Title V of the Gramm-Leach-Bliley Act

(GLBA), 15 U.S.C. 6801 et seq., which governs the treatment of personal information

about customers or consumers. Title V of the GLBA and the federal regulation which

implements it provide a complex scheme for protecting personal financial information.

The requirements insurers must comply with differ depending upon whether the

individual or prospective applicant is a customer or consumer. This Bulletin only extends

the date for complying with the requirements of Title V, for persons regulated by this

Department, from November 13, 2000 to July 1, 2001.

The Department is drafting a privacy regulation which will include a detailed

discussion of the requirements of GLBA and what is required for compliance. As you are

aware, there are other federal regulations which could impact or preempt our draft

regulation. We hope to complete the proposed regulation as soon as the final regulations

pertaining to the electronic transfer of health information are released by the Health Care

Financing Administration. Those final regulations are expected to be released sometime

in November 2000.

Compliance Date Extended

This Bulletin establishes the date by which persons regulated by the South

Carolina Department of Insurance must comply with the provisions of Title V of the

GLBA

nal regulations

pertaining to the electronic transfer of health information are released by the Health Care

Financing Administration. Those final regulations are expected to be released sometime

in November 2000.

Compliance Date Extended

This Bulletin establishes the date by which persons regulated by the South

Carolina Department of Insurance must comply with the provisions of Title V of the

GLBA. The GLBA, which becomes effective November 13, 2000, requires licensees: (1)

to develop privacy policies, develop systems for implementing those policies and

protecting personal information of consumers and customers, and (2) to provide

appropriate disclosure notices to all customers prior to either the effective date or a later

compliance date established by rule by the regulator. This Bulletin establishes an

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extended compliance date of July 1, 2001, for persons regulated by this Department. This

date is consistent with the compliance date established by federal regulators responsible

for enforcing this Act as it applies to federally regulated financial institutions.

Applicability

For purposes of this Bulletin, the terms ''licensees'' or ''persons'' include, but are

not limited to, all insurers, producers, agents, third party administrators, and any other

persons licensed or required to be licensed, or authorized or required to be authorized,

approved, registered, or domiciled in accordance with Title 38 of the South Carolina

Code. Simply, this Bulletin applies to all persons required to have a license to transact

the business of insurance within this state by the South Carolina Code of Laws. This

Bulletin also applies to unauthorized, but approved insurers who accept business placed

through a licensed eligible surplus lines insurance broker in this state (i.e., surplus lines

placements) in accordance with Chapter 45 of Title 38.

Effective Date

Effective immediately, the date for licensees of this Department to comply with

the provisions of Title V of the GLBA is extended to July 1, 2001

is

Bulletin also applies to unauthorized, but approved insurers who accept business placed

through a licensed eligible surplus lines insurance broker in this state (i.e., surplus lines

placements) in accordance with Chapter 45 of Title 38.

Effective Date

Effective immediately, the date for licensees of this Department to comply with

the provisions of Title V of the GLBA is extended to July 1, 2001. This extension is

granted in order to provide sufficient time for licensees to establish the necessary policies

and systems to comply with the requirements of Title V of the GLBA.

Contact Information

Any questions concerning the subject of this Bulletin (i.e., the extension of the

compliance date) should be addressed to the attention of Gwendolyn L. Fuller, Deputy

Director and General Counsel at the South Carolina Department of Insurance: (803) 737-

6200 or E-mail: gfuller@doi.state.sc.us.

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