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Bulletin No. 00-08

Compliance with Title V of the Gramm Leach Bliley Act, Privacy of Consumer Financial Information

Issued and entered October 16, 2000 by Frank M. Fitzgerald, Commissioner of Financial and Insurance Services

On April 3, 2000, the Michigan Insurance Bureau, Financial Institutions Bureau, and Securities Division became the Office of Financial and Insurance Services.

The President signed into law the Gramm-Leach-Bliley Financial Services Modernization Act ("Act") on November 12, 1999. Title V of this Act declares that it is the policy of 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. The Act establishes mandatory, minimum safeguards for the collection, use, and sharing of consumer nonpublic personal information and identifies the federal and state agencies responsible for regulating the diverse financial service providers subject to this law. State laws providing greater consumer protections are generally not affected or preempted by the Act.

Under the mandate of the Act, seven federal regulatory agencies (Federal Deposit Insurance Corporation, Federal Reserve Board, Office of the Comptroller of the Currency, Office of Thrift Supervision, Securities and Exchange Commission, Federal Trade Commission, and National Credit Union Administration) coordinated efforts and promulgated consistent and comparable regulations. These regulations take effect on November 13, 2000, with full compliance required by July 1, 2001. These regulations may be found at 12 CFR 332 (FDIC); 12 CFR 216 (Regulation P - Federal Reserve); 12 CRF 40 (OCC); 12 CFR 573 (OTS); 17 CFR 248 (Regulation S-P - SEC); 16 CFR 313 (FTC); and 12 CFR 716 (NCUA), at each agency's Web site, and at the Federal Register Web site:

All insurers domiciled in the State of Michigan and all other entities and persons regulated by the Division of Insurance that provide products to individuals for personal, family, or household purposes are subject to the Act's Title V privacy requirements, effective November 13, 2000.

The Act reserves functional regulation of all insurance activities to the States and directs State insurance authorities to implement the Title V privacy standards. The Commissioner of the Office of Financial and Insurance Services will seek such statutory authority. Until Michigan law or regulations are adopted, the Commissioner will deem compliance by any person or entity subject to regulation by the Division of Insurance with the standards contained in the Federal Trade Commission regulations (16 CFR 313) to be compliance with Title V of the Act. Though Title V of the Act becomes effective November 13, 2000, the Commissioner (consistent with the federal regulators) will not expect full compliance until July 1, 2001.

Insurers and other regulated persons and entities are reminded that Michigan has in place a substantial body of law guaranteeing the privacy of health or medical information and medical records. (e.g., MCL 600.2157, MSA 27A.2157; MCL 333.21515, MSA 14.15(21515) ; MCL 550.1406, MSA 24.660(406), MCL 750.410, MSA 28.642) Generally, medical or health information and medical records may not be disclosed without the written consent of the patient or his authorized representative; and the sale or disclosure of such information for any consideration is a crime. Nothing in the Gramm-Leach-Bliley Act modifies, limits, or supersedes the standards governing the privacy or confidentiality of health or medical information and medical records under Michigan law, as interpreted by Michigan courts.

Any questions regarding this bulletin should be directed to:

Office of Financial and Insurance Services
Peggy Bryson
611 West Ottawa Street
P.O. Box 30220
Lansing, Michigan 48909-7720

Phone: (517) 373-9552
Toll Free (877) 999-6442