US Breach Laws Are Coming: South Carolina

Liisa M. Thomas and Shanna M. Pearce of Sheppard, Mullin, Richter & Hampton LLP write:

In another change to US state breach notice laws in 2019, South Carolina will have new breach notice requirements for insurance companies. The requirements follow the National Association of Insurance Commissioners’ Insurance Data Security Model Law. South Carolina was the first to adopt the model text into law, and it is this law that is going into effect on January 1, 2019.  South Carolina joins others states, including Connecticut and New York, to have breach notice requirements for insurance companies. The law will be a supplement to the requirements that financial companies, including insurance companies, already face under Gramm-Leach-Bliley Act. 

Companies must promptly investigate potential breaches under this new law. If a breach has occurred, they will often also have to notify the Director of Insurance within 72 hours. This notification must happen either if the company is regulated by the director or if the information of 250 South Carolina residents is affected.  The same obligations apply when a vendor is impacted.

Read more on The National Law Review.

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