National Association of Professional Insurance Agents (PIA) Statement on Passage of Data Notification Legislation in House Financial Services Committee

PR Newswire

WASHINGTON, Sept. 13, 2018 /PRNewswire/ -- The National Association of Professional Insurance Agents (PIA) is unable to support H.R. 6743, the "Consumer Information Notification Requirement Act," which passed the House Financial Services Committee today by a vote of 32-20.

PIA strongly supports the bill's goal of protecting consumers from data breaches and is appreciative of the work the bill's sponsor, Rep. Blaine Luetkemeyer, put into this legislation. Protecting consumers from data breaches is a priority for PIA and our independent insurance agent members. Unfortunately, this legislation would seek to achieve this at the federal level by imposing major new burdens on independent insurance agencies.

PIA has two main concerns with the bill: First, it undermines our system of state-based insurance regulation. Second, it would require state regulators to establish data security safeguards for customer information based on guidelines written for banks and drafted by bank regulators.

"Many states are already advancing legislation on this issue and should be allowed to do so without federal interference," said Jon Gentile, PIA National vice president of government relations. "By preempting state authority, this bill would undermine the work already being done by the states. It also makes the mistake of applying requirements designed for banks on independent insurance agencies, when banking and insurance are inherently and fundamentally dissimilar." In 2014 Congress passed the Capital Standards Clarification Act (Public Law No: 113-279), meant to prevent imposition of bank-based requirements on insurance, because it recognized the disparities between banks and other entities.

Gentile added that provisions of the bill would also place needlessly burdensome requirements on independent insurance agencies, many of which are small businesses. "This issue is best addressed by state legislatures and state insurance commissioners," he said. "State regulators will always have a more thorough understanding of local insurance issues than the federal government."

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America ^SM. PIA's web address is www.pianet.com