Gov. Carney Signs Delaware Insurance Data Security Act into Law
Governor John C. Carney, Jr., signed House Bill 174 (“HB 174”) into law, or the Delaware Insurance Data Security Act, which establishes a comprehensive regulatory framework requiring insurers licensed to do business in Delaware to implement information security programs, report data breaches in a timely manner to the Commissioner and consumers, and empowers the Department of Insurance to investigate violations of the Act and levy penalties accordingly.
Prior to the implementation of this law, there were no standards for insurance companies to follow regarding protection of consumers’ data, and notifying the Department. Historically, when an insurer determined that a data breach had occurred, notification to the Department of Insurance was delayed, sometimes by several months. The act: