No. 30427: R590-216. Standards for Safeguarding Customer Information

DAR File No.: 30427
Filed: 09/06/2007, 03:00
Received by: NL

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Subsections 31A-2-202(1), 31A-2-201(2), and 31A-2-201(3)(a) empower the commissioner to administer and enforce Title 31A, to perform duties imposed by Title 31A, and to make administrative rules to implement the provisions of Title 31A. Title V, Privacy, Section 505, Enforcement, (15 U.S.C. 6805) empowers the commissioner to enforce Subtitle A of Title V of the Gramm-Leach-Bliley Act of 1999, "Financial Services Modernization Act," (15 U.S.C. 6801 through 6820). Title V, Section 505 (15 U.S.C. 6805(b)(2)) authorizes the commissioner to issue rules to implement the requirements of Title V, Section 501(b) of the federal act entitled, "Protection of Nonpublic Personal Information," requiring financial institutions to set safeguards for security and confidentiality of customer records. The commissioner is also authorized under Subsection 31A-23-317(3) to adopt rules implementing the requirements of Title V, Section 501(b), of the federal act into state law.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

The department has received no written comments regarding this rule in the past five years.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

The rule implements the requirements of federal law regarding the disclosure of nonpublic personal information. The rule establishes standards applicable to department licensees to assist them in developing and implementing administrative, technical, and physical safeguards to protect the security, confidentiality, and integrity of customer information. As long as the federal law regarding the privacy of nonpublic personal information is in force, and as long as the insurance industry continues to collect this type of information regarding their customers, this rule will be necessary. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY UT 84114-1201

Direct questions regarding this rule to:

Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [e-mail]

Authorized by:

Jilene Whitby, Information Specialist