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AB147-ASA1,9,86 (c) Establish and periodically reevaluate a schedule for retention and disposal
7of nonpublic information and establish a mechanism for the destruction of nonpublic
8information that is no longer needed.
AB147-ASA1,9,10 9(2) Risk assessment. The licensee shall conduct a risk assessment under which
10the licensee shall do all of the following:
AB147-ASA1,9,1411 (a) Identify reasonably foreseeable internal and external threats that could
12result in unauthorized access to or transmission, disclosure, misuse, alteration, or
13destruction of nonpublic information, including nonpublic information that is
14accessible to or held by 3rd-party service providers of the licensee.
AB147-ASA1,9,1615 (b) Assess the likelihood and potential damage of the threats identified under
16par. (a), taking into consideration the sensitivity of the nonpublic information.
AB147-ASA1,9,1917 (c) Assess the sufficiency of policies, procedures, information systems, and
18other safeguards to manage the threats identified under par. (a) in each relevant
19area of the licensee's operations, including all of the following:
AB147-ASA1,9,2020 1. Employee training and management.
AB147-ASA1,9,2221 2. Information systems, including the classification, governance, processing,
22storage, transmission, and disposal of information.
AB147-ASA1,9,2423 3. Processes for detecting, preventing, and responding to attacks, intrusions,
24and other system failures.
AB147-ASA1,10,2
1(3) Risk management. Based on the risk assessment under sub. (2), the licensee
2shall do all of the following:
AB147-ASA1,10,63 (a) Design an information security program to mitigate the identified threats,
4commensurate with the size and complexity of the licensee, the nature and scope of
5the licensee's activities, including its use of 3rd-party service providers, and the
6sensitivity of the nonpublic information.
AB147-ASA1,10,77 (b) Implement the following security measures, as appropriate:
AB147-ASA1,10,88 1. Place access controls on information systems.
AB147-ASA1,10,129 2. Identify and manage the data, personnel, devices, systems, and facilities
10that enable the licensee to achieve its business purposes, taking into consideration
11the relative importance of the data, personnel, devices, systems, and facilities to the
12business objectives and risk strategy of the licensee.
AB147-ASA1,10,1413 3. Restrict physical access to nonpublic information to authorized individuals
14only.
AB147-ASA1,10,1715 4. Protect, by encryption or other means, nonpublic information being
16transmitted over an external network and nonpublic information stored on a
17portable computer or storage device or media.
AB147-ASA1,10,1918 5. Adopt secure development practices for applications that are developed
19in-house and utilized by the licensee.
AB147-ASA1,10,2120 6. Modify information systems in accordance with the licensee's information
21security program.
AB147-ASA1,10,2322 7. Utilize effective controls, which may include multifactor authentication
23procedures for employees accessing nonpublic information.
AB147-ASA1,10,2524 8. Implement regular testing and monitoring of systems and procedures to
25detect actual and attempted attacks on, or intrusions into, an information system.
AB147-ASA1,11,4
19. Include audit trails within the information security program that are
2designed to detect and respond to cybersecurity events and to reconstruct material
3financial transactions sufficient to support the normal operations and obligations of
4the licensee.
AB147-ASA1,11,75 10. Implement measures to protect against the destruction, loss, or damage of
6nonpublic information due to environmental hazards, natural and other disasters,
7and technological failures.
AB147-ASA1,11,98 11. Develop, implement, and maintain practices for the secure disposal of
9nonpublic information in all formats.
AB147-ASA1,11,1110 (c) Designate at least one employee, affiliate, or outside vendor as responsible
11for the information security program.
AB147-ASA1,11,1312 (d) Stay informed regarding emerging threats and vulnerabilities and
13implement safeguards to manage the threats and vulnerabilities.
AB147-ASA1,11,1514 (e) No less than annually, assess the effectiveness of security safeguards,
15including key controls, systems, and procedures.
AB147-ASA1,11,1716 (f) Include cybersecurity risks in the licensee's enterprise risk management
17process.
AB147-ASA1,11,1918 (g) Utilize reasonable security measures when sharing information, taking
19into consideration the character of the sharing and the type of information shared.
AB147-ASA1,11,2120 (h) Provide personnel with cybersecurity awareness training that is updated
21as necessary.
AB147-ASA1,12,6 22(4) Program adjustments. The licensee shall monitor, evaluate, and adjust the
23information security program under sub. (1) consistent with changes in technology,
24the sensitivity of the nonpublic information, internal and external threats to
25nonpublic information, and changes to the licensee's business operations,

1outsourcing arrangements, and information systems. If a licensee identifies areas,
2systems, or processes that require material improvement, updating, or redesign, the
3insurer shall document the identification and remedial efforts to address the areas,
4systems, or processes. The licensee shall maintain the documentation for a period
5of at least 5 years starting from the date the documentation was created and shall
6produce the documentation upon demand of the commissioner.
AB147-ASA1,12,12 7(5) Incident response plan. As part of its information security program, a
8licensee shall develop an incident response plan to promptly respond to, and recover
9from, a cybersecurity event that compromises the confidentiality, integrity, or
10availability of nonpublic information, the licensee's information systems, or the
11continuing functionality of any aspect of the licensee's business or operations. The
12incident response plan shall be in writing and address all of the following:
AB147-ASA1,12,1313 (a) The goals of the incident response plan.
AB147-ASA1,12,1414 (b) The internal process for responding to a cybersecurity event.
AB147-ASA1,12,1615 (c) The identification of clear roles, responsibilities, and levels of
16decision-making authority during and immediately following a cybersecurity event.
AB147-ASA1,12,1817 (d) The external and internal communications and information sharing during
18and immediately following a cybersecurity event.
AB147-ASA1,12,2019 (e) Requirements for the remediation of identified weaknesses in the
20information systems and associated controls.
AB147-ASA1,12,2221 (f) The reporting and documentation of a cybersecurity event and related
22incident response activities.
AB147-ASA1,12,2423 (g) The evaluation and revision of the incident response plan following a
24cybersecurity event.
AB147-ASA1,13,4
1(6) Oversight of 3rd-party service provider arrangements. A licensee shall
2exercise due diligence when selecting any 3rd-party service provider. The licensee
3shall make reasonable efforts to require a 3rd-party service provider to do all of the
4following:
AB147-ASA1,13,75 (a) Implement appropriate administrative, technical, and physical measures
6to protect and secure the information systems and nonpublic information that are
7accessible to or held by the 3rd-party service provider.
AB147-ASA1,13,88 (b) Report a cybersecurity event under s. 601.954.
AB147-ASA1,13,11 9(7) Oversight by board of directors. If a licensee has a board of directors, the
10board or an appropriate committee of the board shall, at a minimum, do all of the
11following:
AB147-ASA1,13,1312 (a) Require the licensee's executive management to develop, implement, and
13maintain the information security program under sub. (1).
AB147-ASA1,13,1514 (b) Oversee the development, implementation, and maintenance of the
15information security program.
AB147-ASA1,13,1716 (c) Require the licensee's executive management to report, at least annually,
17all of the following information to the board:
AB147-ASA1,13,1918 1. The overall status of the information security program and the licensee's
19compliance with this subchapter.
AB147-ASA1,13,2220 2. Material matters relating to the information security program, including
21issues relating to risk assessment, risk management and control decisions,
223rd-party service provider arrangements, and security testing.
AB147-ASA1,13,2323 3. Recommendations for modifications to the information security program.
AB147-ASA1,14,5 24(8) Annual certification to commissioner. Beginning in the year that is 2
25years after the effective date of this subsection .... [LRB inserts date], a licensee who

1is domiciled in this state shall annually submit, no later than March 1, to the
2commissioner a written certification that the licensee is in compliance with the
3requirements of this section. The licensee shall maintain all records, schedules, and
4data supporting the certification for a period of at least 5 years and shall produce the
5records, schedules, and data upon demand of the commissioner.
AB147-ASA1,14,7 6(9) Exemptions. (a) This section does not apply to a licensee who meets any
7of the following criteria:
AB147-ASA1,14,88 1. Has less than $10,000,000 in year-end total assets.
AB147-ASA1,14,99 2. Has less than $5,000,000 in gross annual revenue.
AB147-ASA1,14,1110 3. Has fewer than 50 employees, including independent contractors, who work
11at least 30 hours a week for the licensee.
AB147-ASA1,14,1412 (b) A licensee who ceases to qualify for the exemption under par. (a) shall
13comply with this section no later than 180 days after the date the licensee ceases to
14qualify or receives the order.
AB147-ASA1,6 15Section 6. 601.953 of the statutes is created to read:
AB147-ASA1,14,20 16601.953 Investigation of cybersecurity event. (1) If a licensee learns that
17a cybersecurity event involving the licensee's information systems or nonpublic
18information has or may have occurred, the licensee, or an outside vendor or service
19provider designated to act on behalf of the licensee, shall conduct a prompt
20investigation that, at a minimum, includes all of the following:
AB147-ASA1,14,2121 (a) An assessment of the nature and scope of the cybersecurity event.
AB147-ASA1,14,2322 (b) The identification of any nonpublic information that was or may have been
23involved in the cybersecurity event.
AB147-ASA1,15,3
1(c) The performance of reasonable measures to restore the security of the
2licensee's information systems compromised in the cybersecurity event and prevent
3additional unauthorized acquisition, release, or use of nonpublic information.
AB147-ASA1,15,8 4(2) If a licensee knows that a cybersecurity event has or may have occurred in
5an information system maintained by a 3rd-party service provider, the licensee shall
6comply with sub. (1) or make reasonable efforts to confirm and document that the
73rd-party service provider has either complied with sub. (1) or failed to cooperate
8with the investigation under sub. (1).
AB147-ASA1,15,11 9(3) The licensee shall maintain records concerning a cybersecurity event for a
10period of at least 5 years starting from the date of the cybersecurity event and shall
11produce the records upon demand of the commissioner.
AB147-ASA1,7 12Section 7. 601.954 of the statutes is created to read:
AB147-ASA1,15,16 13601.954 Notification of a cybersecurity event. (1) Notification to the
14commissioner.
(a) A licensee shall notify the commissioner that a cybersecurity
15event involving nonpublic information has occurred if any of the following conditions
16is met:
AB147-ASA1,15,1917 1. The licensee is domiciled in this state and the cybersecurity event has a
18reasonable likelihood of materially harming a consumer or a material part of the
19normal operations of the licensee.
AB147-ASA1,15,2220 2. The cybersecurity event is any of the following and the licensee reasonably
21believes that the cybersecurity event involves the nonpublic information of at least
22250 consumers:
AB147-ASA1,15,2523 a. A cybersecurity event for which notice is required to be provided to a
24government body, self-regulatory agency, or other supervisory entity under state or
25federal law.
AB147-ASA1,16,2
1b. A cybersecurity event that has a reasonable likelihood of materially harming
2a consumer or a material part of the normal operations of the licensee.
AB147-ASA1,16,63 (b) A licensee shall provide the notification under par. (a) in electronic form and
4as promptly as possible, but no later than 3 business days from the determination
5that the cybersecurity event occurred. In the notification, the licensee shall provide
6as much of the following information as possible:
AB147-ASA1,16,87 1. The date and source of the cybersecurity event and the time period during
8which information systems were compromised by the cybersecurity event.
AB147-ASA1,16,99 2. A description of how the cybersecurity event was discovered.
AB147-ASA1,16,1210 3. A description of how the nonpublic information was exposed, lost, stolen, or
11breached and an explanation of how the information has been, or is in the process
12of being, recovered.
AB147-ASA1,16,1513 4. A description of the specific data elements, including types of medical,
14financial, and personally identifiable information, that were acquired without
15authorization.
AB147-ASA1,16,1616 5. The number of consumers affected by the cybersecurity event.
AB147-ASA1,16,1817 6. A description of efforts to address the circumstances that allowed the
18cybersecurity event to occur.
AB147-ASA1,16,2019 7. The results of any internal review related to the cybersecurity event,
20including the identification of a lapse in automated controls or internal procedures.
AB147-ASA1,16,2321 8. Whether the licensee notified a government body, self-regulatory agency, or
22other supervisory entity of the cybersecurity event and, if applicable, the date the
23notification was provided.
AB147-ASA1,17,3
19. A copy of the licensee's privacy policy and a statement outlining the steps the
2licensee will take, or has taken, to investigate and notify consumers affected by the
3cybersecurity event.
AB147-ASA1,17,54 10. The name of a contact person who is familiar with the cybersecurity event
5and authorized to act for the licensee.
AB147-ASA1,17,86 (c) The licensee shall update and supplement the information provided under
7par. (b) to address material changes to the information as additional information
8becomes available to the licensee.
AB147-ASA1,17,15 9(2) Notice to consumers and producers of record. (a) Notice to consumers.
10If a licensee knows that nonpublic information of a consumer in the licensee's
11possession has been acquired by a person whom the licensee has not authorized to
12acquire the nonpublic information, the licensee shall make reasonable efforts to
13notify each consumer who is subject of the nonpublic information. The notice shall
14indicate that the licensee knows of the unauthorized acquisition of nonpublic
15information pertaining to consumer.
AB147-ASA1,17,2116 (b) Notice to consumer reporting agencies. If, as the result of a single incident,
17a licensee is required under par. (a) to notify 1,000 or more consumers, the licensee
18shall without unreasonable delay notify all consumer reporting agencies that
19compile and maintain files on consumers on a nationwide basis, as defined in 15 USC
201681a
(p), of the timing, distribution, and content of the notices sent to the
21consumers.
AB147-ASA1,17,2422 (c) Exceptions. Notwithstanding pars. (a) and (b), a licensee is not required to
23provide notice of the acquisition of nonpublic information if any of the following
24applies:
AB147-ASA1,18,3
11. The acquisition of nonpublic information does not create a material risk of
2identity theft or fraud to the individual who is the subject of the nonpublic
3information.
AB147-ASA1,18,54 2. The nonpublic information was acquired in good faith by an employee or
5agent of the licensee and is used for a lawful purpose of the licensee.
AB147-ASA1,18,116 (d) Timing and manner of notice; other requirements. 1. Subject to par. (h), a
7licensee shall provide the notice required under par. (a) within a reasonable time, not
8to exceed 45 days after the licensee learns of the acquisition of nonpublic information.
9A determination as to reasonableness under this subdivision shall include
10consideration of the number of notices that the licensee must provide and the
11methods of communication available to the licensee.
AB147-ASA1,18,1812 2. A licensee shall provide the notice required under par. (a) by mail or by a
13method the licensee has previously employed to communicate with the consumer
14who is the subject of the nonpublic information. If a licensee cannot with reasonable
15diligence determine the mailing address of the subject of the nonpublic information,
16and if the licensee has not previously communicated with the subject of the nonpublic
17information, the licensee shall provide notice by a method reasonably calculated to
18provide actual notice to the subject of the nonpublic information.
AB147-ASA1,18,2119 3. Upon written request by a consumer who has received a notice under par.
20(a), the licensee that provided the notice shall identify the nonpublic information
21that was acquired.
AB147-ASA1,18,2322 (e) Notice to commissioner. A licensee shall provide to the commissioner a copy
23of any notice sent under this subsection.
AB147-ASA1,18,2524 (f) Exceptions for certain entities. This subsection does not apply to any of the
25following:
AB147-ASA1,19,4
11. An entity that is subject to, and in compliance with, the privacy and security
2requirements of 15 USC 6801 to 6827, or a person that has a contractual obligation
3to such an entity, if the entity or person has in effect a policy concerning breaches of
4information security.
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