HR3437-119

What This Bill Does

The Insurance Data Protection Act narrows federal insurance-data collection authority. It repeals the Federal Insurance Office's subpoena and enforcement authority in title 31. It adds confidentiality language so sharing nonpublic data with or by FIO among federal agencies, state insurance regulators, their agents, or other entities does not waive privilege and remains subject to Freedom of Information Act exceptions. It limits the Office of Financial Research subpoena authority by excluding insurance companies from the covered financial-company subpoena clause. It also adds a Dodd-Frank section 181 governing data collected from nonbank financial companies that are insurance companies. Before collecting data from an insurance company under Dodd-Frank title I or II, financial regulators including the SEC, CFTC, Financial Stability Oversight Council, federal banking agencies, and OFR must coordinate with relevant federal agencies, state insurance regulators, other regulators, and public sources to see whether the data is already available in time. If it is available, regulators must obtain it from those sources; if not, they may collect directly from the insurance company only by complying with the Paperwork Reduction Act. Privilege, privacy, and confidentiality protections continue after data is shared, and data may be shared with state insurance regulators under compliant information-sharing agreements without waiving privilege.

Who Benefits and How

Insurance companies benefit because FIO subpoena authority is repealed and OFR subpoenas are limited for insurance companies. State insurance regulators benefit because federal regulators must coordinate with them before collecting insurance company data. Insurance policyholders benefit indirectly if confidentiality and privilege protections reduce unnecessary exposure of nonpublic insurer data. Insurance trade associations benefit from stronger procedural limits on federal data requests.

Who Bears the Burden and How

Federal Insurance Office staff lose subpoena and enforcement authority. Office of Financial Research staff lose direct subpoena reach over insurance companies under the amended clause. Financial regulators must search existing agency, regulator, and public sources before direct insurance company data collection. SEC staff, CFTC staff, FSOC staff, banking agency staff, and OFR staff must comply with coordination and Paperwork Reduction Act requirements.

Key Provisions

• Repeals Federal Insurance Office subpoena and enforcement authority.
• Strengthens privilege, privacy, confidentiality, and FOIA protections for nonpublic insurance data shared with federal or state regulators.
• Limits OFR subpoena authority by excluding insurance companies from a covered financial-company clause.
• Requires financial regulators to coordinate with state regulators and existing sources before collecting data from nonbank insurance companies.
• Requires Paperwork Reduction Act compliance before direct collection when data is not otherwise available.