+2 States Add Model Data Security Legislation

What’s happening? Add Maine and North Dakota to the states that have adopted the National Association of Insurance Commissioners (NAIC) data security model law. They’re up to 13 states, like the original 13 colonies but different. These 13 require insurers, insurance agents and other entities licensed by the state department of insurance to have comprehensive data security plans.

Why is this important? Not only are insurance policies for cyber incidents increasing in number and value, but so is a requirement that the insurance side of the equation has appropriately sized data security plans for the information that they maintain.

How will this be important? 13 of 50, this model law is only a couple yers old, it take time for it to spread to more states, but based on previous model laws, the spread is inevitable.

National Law Review | Two Other States Adopt Model Data Security Law for Insurance Industry