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State of South Dakota
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SEVENTY-SIXTH
SESSION
LEGISLATIVE ASSEMBLY, 2001 |
| 535E0031 |
SENATE COMMERCE COMMITTEE ENGROSSED
NO.
SB 3
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01/23/2001
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| Introduced by: Senators Ham and Madden and Representatives McCoy, Monroe, and Slaughter at the request of Interim Judiciary Committee |
FOR AN ACT ENTITLED, An Act to
provide the director of insurance with rule-making
authority regarding personal nonpublic financial information.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 58-2 be amended by adding thereto a NEW SECTION to read as follows:
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That chapter 58-2 be amended by adding thereto a NEW SECTION to read as follows:
The director shall promulgate rules pursuant to chapter 1-26 relating to the privacy of
personal nonpublic financial information. The rules must be designed to provide privacy to the
public of the personal nonpublic financial information that is shared or obtained in connection
with insurance transactions. The director shall design the rules to protect the public's personal
nonpublic financial information but also consider the impact of any rules on the cost and
availability of insurance in this state. In promulgating the rules required by this Act the director
shall give substantial consideration to the privacy standards contained in the NAIC Privacy of
Consumer Financial and Health Information Regulation as in effect as of January 1, 2001, and
otherwise design the rules to achieve uniformity, to the degree reasonably possible, in the
standards for personal nonpublic financial information. The rules may include the following as
they relate to financial privacy:
(1) Definition of terms;
(2) Permitting the disclosure and use of personal nonpublic financial information
between affiliates;
(3) Opt out procedures for the disclosure and use of personal nonpublic financial
information with nonaffiliates;
(4) Notice and disclosure requirements and formats;
(5) Limits on disclosure of personal nonpublic financial information;
(6) Limits on redisclosure and reuse of personal nonpublic financial information;
(7) Limits on sharing account number information for marketing purposes;
(8) Exceptions for opt out and notice requirements; and
(9) Nondiscrimination requirements as they relate to persons who opt out or who do not
grant an authorization.
Nothing in this Act applies to any rules that may be promulgated pursuant to
§
58-2-40.
Nothing in this Act may be construed to impair or conflict with the Fair Credit Reporting Act.
