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B-196663 1 (1981-04-27)

handle is hein.gao/gaobabkaj0001 and id is 1 raw text is: 



                       COMPTROLLER GENERAL OF THE UNITED STATES       Q
                               WASHINGTON D.C. 20548



 B-196663



 The Honorable Jack Brooks
 Chairman, Committee on Governme
 Operations                    e   Y)
 House of Representatives

 Dear Mr. Chairman:

      ReferercAis made to your letter of March 6, 1981, re-
questing our comments on H.R. 21617 a bill to improve informa-
tion practices in the insurance industry, to amend the Privacy
Act of 1974, and for other purposes.

     Title I of the bill-Cpecords Subject to the Privacy Ac)--adds
a new subsection to the Privacy Act of 1974 which excludes its
applicability to insurance records maintained by Federal agencies
or their contractors if the maintenance and disclosure of such
insurance records are subject to the provisions of the Fair
Insurance Information Practices Act. The remainder of theb
is cited as the LFair Insurance Information Practices Act   The
coverage extended by the act to insurance records is similar in
most respects to that presently provided by the Privacy Act for
systems of records maintained by Federal agencies.

     The underlying purpose of the Privacy Act, assuring a de-
gree of personal privacy and fairness in determining matters
affecting individuals served by the Federal Government, is
adopted in the provisions of this act for the benefit of con-
sumers in the insurance industry. In the bill, this is provided
in provisions addressing conditions of disclosure (Title IV),
notification of insurance information practices (Title II), infor-
mation collection practices (Title III), individual access to
personal information (Title V), and correction, amendment, or
deletion of recorded personal information (Title VI).

GAO STUDY OF STATE REGULATION
OF THE INSURANCE BUSINESS

     In our report Issues and Needed Improvements in State
Regulation of the Insurance Business (PAD-79-72, October 9,
1979), we confirmed some of the findings concerning the absence
of adequate State regulations reported earlier by the Privacy
Protection Study Commission. The Commission was established
by the Privacy Act of 1974 and tasked, among other things, to
conduct a study broadly assessing practices in both the public
and private sectors. The Commission's report Personal Privacy
In An Information Society made extensive recommendations for



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