Expect Focus Life, Annuity, and Retirement Solutions, September 2023

NAIC Privacy Working Group Goes All-in on New Draft Privacy Model

Life, Annuity, and Retirement Solutions   |   Cybersecurity and Privacy   |   Digital and E-Commerce Engagement and Innovation   |   Life, Annuity, and Retirement Solutions   |   September 28, 2023

The National Association of Insurance Commissioners’ Privacy Working Group has been feverishly shuffling and re-dealing its new privacy model, but its luck may be running out.

After two full days of draws and calls on June 5 and 6, the working group dealt a revised draft of the privacy model on July 11. While the draft is an improvement over the initial version, it faced strong criticism, potentially indicating that the working group’s odds of passing a new privacy model may be drawing thin.

Improvements From the Prior Draft

The July 11 draft took some definite “wins” from the play on June 5 and 6. For example:

  • No longer prohibiting cross-border sharing of consumers’ personal information.
  • Removing the optional private right of action.
  • Including a total HIPAA safe harbor.
  • Permitting joint marketing agreements.
  • Narrowing the circumstances requiring opt-in permissions for marketing and instances where an annual notice of privacy protection practices would be required.
  • Extending the timeframe for insurers to transition personal information from legacy systems.

Remaining Issues

Despite this progress, many issues remain and the new model may still be a longshot. South Dakota and Nebraska have already stated that the current draft would be a bust in their states and stood no chance of passage. Criticism and concerns continued to be raised at the NAIC Summer National Meeting, prompting the working group to up the ante by promising to re-deal a new draft and request an extension. Will the next draft get sufficient buy-in to become a new model, or will the working group be forced to fold? We’ll have to wait for the next draw.


©2023 Carlton Fields, P.A. Carlton Fields practices law in California through Carlton Fields, LLP. Carlton Fields publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information and educational purposes only, and should not be relied on as if it were advice about a particular fact situation. The distribution of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship with Carlton Fields. This publication may not be quoted or referred to in any other publication or proceeding without the prior written consent of the firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our Contact Us form via the link below. The views set forth herein are the personal views of the author and do not necessarily reflect those of the firm. This site may contain hypertext links to information created and maintained by other entities. Carlton Fields does not control or guarantee the accuracy or completeness of this outside information, nor is the inclusion of a link to be intended as an endorsement of those outside sites.

Subscribe to Publications


The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.