Minnesota consumers have new protections to protect the privacy of data they provide to insurance companies, including personal and financial information, through a new law championed by the Minnesota Department of Commerce. 

In recent years, there have been several major data breaches involving large insurers that have exposed and compromised the sensitive personal information of millions of insurance consumers. The NAIC Data Security Model Act, passed by the 2021 Minnesota Legislature, adopts a model insurance law proposed by the National Association of Insurance Commissioners (NAIC). The NAIC model law has been enacted by 18 states, including Minnesota. The U.S. Treasury has urged states to adopt the NAIC model law or the administration plans to ask Congress to preempt states to take action.  

“This new law serves as a guide for Minnesota insurance businesses on how to prepare for, and react to, a data incident,” said Commerce Commissioner Grace Arnold. “Being prepared, prioritizing consumer privacy and increasing public disclosure will better protect all Minnesotans.” 

The new law applies to insurers, insurance agents, and other insurance-related entities licensed by the Department of Commerce and asks them to do three things: 

• To create a plan on how to deal with cybersecurity events. 
• To work this plan and investigate cybersecurity events if they think one has occurred. 
• To notify the Department of Commerce and to notify consumers when a cybersecurity event has occurred. 

These three requirements will increase the likelihood that companies are prepared for the internal and external data threats they face and help consumers take immediate steps to protect themselves when their private data is exposed. 

Protecting the privacy of consumer data has been a priority for Commerce and the NAIC. Commerce continues to work with NAIC committees on additional policy ideas for consumer privacy protection. 

States that, as of Aug. 3, had adopted the NAIC Data Security Model Act are: Alabama, Connecticut, Delaware, Indiana, Iowa, Hawaii, Louisiana, Maine, Michigan, Minnesota, Mississippi, New Hampshire, North Dakota, Ohio, South Carolina, Tennessee, Virginia and Wisconsin. 

With You Every Day

The Minnesota Department of Commerce mission is to protect all Minnesotans in their everyday financial transactions by investigating and evaluating services, and advocating that they be fair, accessible and affordable. Wherever you are in Minnesota, the Department of Commerce is with you every day. Whether you’re filling up on gas, purchasing a home, working to reduce energy consumption or rebuilding after a disaster—we are with you, no matter what. The Minnesota Department of Commerce oversees more than 20 regulated industries, ensuring that Minnesota businesses are strong and Minnesota consumers are protected. Learn more at mn.gov/commerce. 

MEDIA CONTACT:
Mo Schriner, Director of Communications
651-363-1227  |  mo.schriner@state.mn.us