Ala. Admin. Code r. 482-1-126-.01

Current through Register Vol. 43, No. 02, November 27, 2024

Section 482-1-126-.01 - Preamble

(1) This chapter establishes standards for developing and implementing administrative, technical and physical safeguards to protect the security, confidentiality and integrity of customer information, pursuant to Sections 501, 505(b), and 507 of the Gramm-Leach-Bliley Act, codified at 15 U.S.C. 6801, 6805(b) and 6807.

(2) Section 501(a) provides that it is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its customers and to protect the security and confidentiality of those customers' nonpublic personal information. Section 501(b) requires the state insurance regulatory authorities to establish appropriate standards relating to administrative, technical and physical safeguards:

(1) to ensure the security and confidentiality of customer records and information;

(2) to protect against any anticipated threats or hazards to the security or integrity of such records; and

(3) to protect against unauthorized access to or use of records or information that could result in substantial harm or inconvenience to a customer.

(3) Section 505(b)(2) calls on state insurance regulatory authorities to implement the standards prescribed under Section 501(b) by regulation with respect to persons engaged in providing insurance.

(4) Section 507 provides, among other things, that a state regulation may afford persons greater privacy protections than those provided by subtitle A of Title V of the Gramm-Leach-Bliley Act. This chapter requires that the safeguards established pursuant to this chapter shall apply to nonpublic personal financial information.

Author: Commissioner of Insurance

Ala. Admin. Code r. 482-1-126-.01

New Rule: May 6, 2003; effective May 16, 2003. Filed with LRS May 7, 2003. Rule is not subject to the Alabama Administrative Procedure Act.

Statutory Authority:Code of Ala. 1975, §§ 27-2-17, 27-7-44; 15 U.S.C. §§6801 - 6827.