Comparison with rules in adjacent states:
Illinois: Recently submitted notice of proposed amendment to 41 Ill. Reg. 4002.50 , published in the Illinois Register Vol 40, Issue 53 pg.16513, that proposes changes consistent with changes to the privacy notice proposed by Wisconsin.
Iowa: Iowa promulgated Iowa Code section 505.8 amended Chapter 90 by creating 191—90.4(4) (505) that is consistent with the proposed change to Wisconsin law. The regulation was filed November 30, 2016, and was effective January 25, 2017. Michigan: Mich. Admin. Code r 500.551 etc. contains the similar requirement for providing annual notices but does not contain the most recent modification as contained in this proposed rule.
Minnesota: Adopted the NAIC model act implementing the GLBA that contains the similar requirement for providing annual notices but does not contain the most recent modification as contained in this proposed rule.
A summary of the factual data and analytical methodologies that OCI used in support of the proposed rule:
The OCI has reviewed NAIC models and insurer’s financial information to support the analysis that this rule change is beneficial to the state of Wisconsin and its insurance industry. Further, these amendments relieve insurers from the burden of costly annual mailings to consumers when able to comply with two conditions. The proposed rule change still protects Wisconsin’s insureds by promoting transparency with regard to the treatment and use of their sensitive personal information and licensed insurance companies are required to send notices if their policies and treatment of sensitive personal information changes from what was previously disclosed. One company estimates that it could save $70,000 annually in printing, postage, and mailing supplies.
Analysis and supporting documentation that OCI used in support of the OCI’s determination of the rule’s effect on small business or in preparation of an economic impact analysis:
This proposed emergency rule will have a moderately positive economic impact as it will eliminate the need for financial institutions to send their customers redundant privacy notices. This ability to reduce the frequency of mailing privacy notices will decrease costs and will have a positive effect on small businesses in Wisconsin. The annual notice to consumers requires printing, postage and supplies all at increasing costs to insurers. Those insurers who are able to comply will directly and immediately benefit from the exception.
Effect on small business:
This rule will not negatively affect regulated small businesses as the proposed rule change would no longer require them to send out annual privacy notices provided they are able to comply with the terms of the exceptions. The proposed rule change would also have a beneficial financial effect on small business that can be measured by the savings realized by not sending out annual privacy notices.
A copy of any comments and opinion prepared by the Board of Veterans Affairs under s. 45.03 (2m), Stats., for rule proposed by the Department of Veterans Affairs. None.
Agency contact person:
or by contacting Karyn Culver, Paralegal, at:
Phone: (608) 267-9586
Address: 125 South Webster St – 2nd Floor, Madison WI 53703-3474
Mail: PO Box 7873, Madison, WI 53707-7873
Place where comments are to be submitted and deadline for submission:
A public hearing will be held in compliance with s. 227.24 (4), Stats., as the Office will concurrently issue the permanent rule for Notice of Hearing and deliver to Legislative Council the permanent rule as soon as possible following publication of the emergency rule. Specific time, date and location for comments will be provided in the Notice of Hearing.
The proposed rule changes are:
SECTION 1. Ins 25.13 (4) (title) is renumbered Ins 25.13 (4) (title) and (a), and are amended to read:
Ins 25.13 (4) Exception Exceptions. The annual privacy notice requirement in this section does not apply when a licensee complies with either of the following:
(a) When a licensee provides nonpublic personal financial information to any person described by s. Ins 25.50 (1) (a) 2. SECTION 2. Ins 25.13 (4) (b) is created to read:
Ins 25.13 (4) (b) When both of the following conditions are met:
1. The licensee provides nonpublic personal information only in accordance with the provisions of this chapter.
2. The licensee has not changed its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed in the licensee’s most recent disclosure to consumers in accordance with this section.
SECTION 3. These emergency rule changes will take effect on the date of publication as provided in s.227.24 (1) (c),Stats.
