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SB160,11,2423 (g) The evaluation and revision of the incident response plan following a
24cybersecurity event.
SB160,12,5
1(6) Oversight of 3rd-party service provider arrangements. No later than 2
2years after the effective date of this subsection .... [LRB inserts date], a licensee shall
3exercise due diligence in selecting a 3rd-party service provider. The licensee shall
4make reasonable efforts to require a 3rd-party service provider to do all of the
5following:
SB160,12,86 (a) Implement appropriate administrative, technical, and physical measures
7to protect and secure the information systems and nonpublic information that are
8accessible to or held by the 3rd-party service provider.
SB160,12,99 (b) Report a cybersecurity event under s. 601.954.
SB160,12,12 10(7) Oversight by board of directors. If a licensee has a board of directors, the
11board or an appropriate committee of the board shall, at a minimum, do all of the
12following:
SB160,12,1413 (a) Require the licensee's executive management to develop, implement, and
14maintain the information security program under sub. (1).
SB160,12,1615 (b) Oversee the development, implementation, and maintenance of the
16information security program.
SB160,12,1817 (c) Require the licensee's executive management to report, at least annually,
18all of the following information to the board:
SB160,12,2019 1. The overall status of the information security program and the licensee's
20compliance with this subchapter.
SB160,12,2321 2. Material matters relating to the information security program, including
22issues relating to risk assessment, risk management and control decisions,
233rd-party service provider arrangements, and security testing.
SB160,12,2424 3. Recommendations for modifications to the information security program.
SB160,13,7
1(8) Annual certification to commissioner. Beginning in the year that is 2
2years after the effective date of this subsection .... [LRB inserts date], a licensee who
3is domiciled in this state shall annually submit, no later than March 1, to the
4commissioner a written certification that the licensee is in compliance with the
5requirements of this section. The licensee shall maintain all records, schedules, and
6data supporting the certification for a period of at least 5 years and shall produce the
7records, schedules, and data upon demand of the commissioner.
SB160,13,9 8(9) Exemptions. (a) This section does not apply to a licensee who meets any
9of the following criteria:
SB160,13,1010 1. Has less than $10,000,000 in year-end total assets.
SB160,13,1111 2. Has less than $5,000,000 in gross annual revenue.
SB160,13,1312 3. Has fewer than 25 employees, including independent contractors, who work
13at least 30 hours a week for the licensee.
SB160,13,1614 (b) The commissioner may issue an order to a licensee who is otherwise exempt
15under par. (a) to comply with this section if the commissioner determines that the
16order is warranted by the licensee's unique circumstances.
SB160,13,1917 (c) A licensee who ceases to qualify for the exemption under par. (a) or who
18receives an order under par. (b) shall comply with this section no later than 180 days
19after the date the licensee ceases to qualify or receives the order.
SB160,6 20Section 6. 601.953 of the statutes is created to read:
SB160,13,25 21601.953 Investigation of cybersecurity event. (1) If a licensee learns that
22a cybersecurity event involving the licensee's information systems or nonpublic
23information has or may have occurred, the licensee, or an outside vendor or service
24provider designated to act on behalf of the licensee, shall conduct a prompt
25investigation that, at a minimum, includes all of the following:
SB160,14,1
1(a) An assessment of the nature and scope of the cybersecurity event.
SB160,14,32 (b) The identification of any nonpublic information that was or may have been
3involved in the cybersecurity event.
SB160,14,64 (c) The performance of reasonable measures to restore the security of the
5licensee's information systems compromised in the cybersecurity event and prevent
6additional unauthorized acquisition, release, or use of nonpublic information.
SB160,14,11 7(2) If a licensee knows that a cybersecurity event has or may have occurred in
8an information system maintained by a 3rd-party service provider, the licensee shall
9comply with sub. (1) or make reasonable efforts to confirm and document that the
103rd-party service provider has either complied with sub. (1) or failed to cooperate
11with the investigation under sub. (1).
SB160,14,14 12(3) The licensee shall maintain records concerning a cybersecurity event for a
13period of at least 5 years starting from the date of the cybersecurity event and shall
14produce the records upon demand of the commissioner.
SB160,7 15Section 7. 601.954 of the statutes is created to read:
SB160,14,19 16601.954 Notification of a cybersecurity event. (1) Notification to the
17commissioner.
(a) A licensee shall notify the commissioner that a cybersecurity
18event involving nonpublic information has occurred if any of the following conditions
19is met:
SB160,14,2220 1. The licensee is domiciled in this state and the cybersecurity event has a
21reasonable likelihood of materially harming a consumer or a material part of the
22normal operations of the licensee.
SB160,14,2523 2. The cybersecurity event is any of the following and the licensee reasonably
24believes that the cybersecurity event involves the nonpublic information of at least
25250 consumers:
SB160,15,3
1a. A cybersecurity event for which notice is required to be provided to a
2government body, self-regulatory agency, or other supervisory entity under state or
3federal law.
SB160,15,54 b. A cybersecurity event that has a reasonable likelihood of materially harming
5a consumer or a material part of the normal operations of the licensee.
SB160,15,96 (b) A licensee shall provide the notification under par. (a) in electronic form and
7as promptly as possible, but no later than 3 business days from the determination
8that the cybersecurity event occurred. In the notification, the licensee shall provide
9as much of the following information as possible:
SB160,15,1110 1. The date and source of the cybersecurity event and the time period during
11which information systems were compromised by the cybersecurity event.
SB160,15,1212 2. A description of how the cybersecurity event was discovered.
SB160,15,1513 3. A description of how the nonpublic information was exposed, lost, stolen, or
14breached and an explanation of how the information has been, or is in the process
15of being, recovered.
SB160,15,1816 4. A description of the specific data elements, including types of medical,
17financial, and personally identifiable information, that were acquired without
18authorization.
SB160,15,1919 5. The number of consumers affected by the cybersecurity event.
SB160,15,2120 6. A description of efforts to address the circumstances that allowed the
21cybersecurity event to occur.
SB160,15,2322 7. The results of any internal review related to the cybersecurity event,
23including the identification of a lapse in automated controls or internal procedures.
SB160,16,3
18. Whether the licensee notified a government body, self-regulatory agency, or
2other supervisory entity of the cybersecurity event and, if applicable, the date the
3notification was provided.
SB160,16,64 9. A copy of the licensee's privacy policy and a statement outlining the steps the
5licensee will take, or has taken, to investigate and notify consumers affected by the
6cybersecurity event.
SB160,16,87 10. The name of a contact person who is familiar with the cybersecurity event
8and authorized to act for the licensee.
SB160,16,119 (c) The licensee shall update and supplement the information provided under
10par. (b) to address material changes to the information as additional information
11becomes available to the licensee.
SB160,16,21 12(2) Notice to consumers and producers of record. A licensee required to
13notify the commissioner under sub. (1) shall comply with s. 134.98, if applicable, and
14provide to the commissioner a copy of any notice sent under s. 134.98 (2). If the
15licensee is an insurer whose services are accessed by consumers through an
16independent insurance producer, the licensee shall notify the producer of record of
17any consumers affected by the cybersecurity event no later than the date at which
18notice is provided under s. 134.98, except that notice is not required to a producer of
19record who is not authorized by law or contract to sell, solicit, or negotiate on behalf
20of the licensee or if the licensee does not have the current producer of record
21information for a consumer.
SB160,17,3 22(3) Third-party service providers. If the licensee has knowledge of a
23cybersecurity event involving an information system maintained by a 3rd-party
24service provider, the licensee shall provide notice to the commissioner no later than
253 days after the earlier of the date the 3rd-party service provider notifies the licensee

1of the cybersecurity event or the licensee has actual knowledge of the cybersecurity
2event. The licensee is not required to comply with this subsection if the 3rd-party
3service provider provides notice under sub. (1).
SB160,17,14 4(4) Reinsurers. In the event of a cybersecurity event involving nonpublic
5information, or involving an information system maintained by a 3rd-party service
6provider, a licensee who is acting as an assuming insurer and who does not have a
7direct contractual relationship with consumers affected by the cybersecurity event
8shall notify the ceding insurer and the commissioner of the licensee's state of domicile
9of the cybersecurity event no later than 3 business days after learning of the
10cybersecurity event. The licensee shall have no other notice obligations relating to
11a cybersecurity event or other data breach under this section or any other law of this
12state. A ceding insurer who has a direct contractual relationship with the affected
13consumers shall comply with the notification requirements under this section and,
14if applicable, the requirements under s. 134.98.
SB160,8 15Section 8. 601.955 of the statutes is created to read:
SB160,17,19 16601.955 Confidentiality. (1) All of the following apply to documents,
17materials, and other information in the possession or control of the commissioner
18that are obtained by, created by, or disclosed to the commissioner or any other person
19under this subchapter:
SB160,17,2120 (a) The documents, materials, and other information are considered
21proprietary and contain trade secrets.
SB160,17,2322 (b) The documents, materials, and other information are confidential and
23privileged, and the privilege may not be constructively waived.
SB160,17,2524 (c) The documents, materials, and other information are not open to inspection
25or copying under s. 19.35 (1).
SB160,18,2
1(d) The documents, materials, and other information are not subject to
2subpoena or discovery and are not admissible as evidence in a private civil action.
SB160,18,53 (e) The commissioner may use the documents, materials, and other
4information in the furtherance of any regulatory or legal action brought as a part of
5the commissioner's official duties.
SB160,18,76 (f) The commissioner may not make the documents, materials, or other
7information public without first obtaining written consent of the licensee.
SB160,18,108 (g) Neither the commissioner nor any person who received the documents,
9materials, or other information may testify or be required to testify in any private
10civil action regarding the documents, materials, or other information.
SB160,18,23 11(2) Notwithstanding sub. (1), the commissioner may share, upon request, the
12documents, materials, or other information with other state, federal, and
13international financial regulatory agencies if the recipient agrees in writing to
14maintain the confidentiality and privileged status of the documents, materials, or
15other information and has verified that it has the legal authority to maintain
16confidentiality. The commissioner may receive documents, materials, or other
17information related to this subchapter from other state, federal, and international
18financial regulatory agencies and shall maintain as confidential or privileged any
19documents, materials, or other information that is treated as confidential or
20privileged under the laws of the jurisdiction that is the source of the documents,
21materials, or other information. The sharing of documents under this subsection
22does not constitute a delegation of regulatory authority and does not act as a waiver
23of privilege.
SB160,19,3 24(3) Notwithstanding sub. (1), the commissioner may share the documents,
25materials, or other information under this section with a 3rd-party consultant or

1vendor if the consultant or vendor agrees in writing to maintain the confidentiality
2and privileged status of the documents, materials, and other information shared
3under this section.
SB160,19,7 4(4) Nothing in this subchapter prohibits the commissioner from releasing final,
5adjudicated actions that are open to public inspection to a database or other
6clearinghouse service maintained by the National Association of Insurance
7Commissioners, its affiliates, or subsidiaries.
SB160,9 8Section 9. 601.956 of the statutes is created to read:
SB160,19,15 9601.956 Enforcement. The commissioner shall have the power to examine
10and investigate the affairs of any licensee to determine whether the licensee has
11engaged in conduct in violation of this subchapter and to take action that is necessary
12or appropriate to enforce the provisions of this subchapter. This power is in addition
13to the powers that the commissioner has under subch. IV of this chapter. An
14investigation or examination under this section shall be conducted under subchs. IV
15and V of this chapter.
SB160,10 16Section 10. Effective date.
SB160,19,1817 (1) This act takes effect on the first day of the 4th month beginning after
18publication.
SB160,19,1919 (End)
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