102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3040

 

Introduced 2/19/2021, by Rep. Keith R. Wheeler

 

SYNOPSIS AS INTRODUCED:
 
New Act
5 ILCS 140/7.5

    Creates the Insurance Data Security Act. Requires any person licensed, authorized to operate, or registered as an insurer in accordance with the insurance laws of this State to conduct a risk assessment of cybersecurity threats, implement appropriate security measures, and no less than annually assess the effectiveness of the safeguards' key controls, systems, and procedures. Requires a licensee to develop, implement, and maintain a written information security program based on the licensee's risk assessment. Requires each licensee to establish a written incident response plan designed to promptly respond to, and recover from, any cybersecurity event that compromises the confidentiality, integrity, or availability of nonpublic information in its possession, the licensee's information systems, or the continuing functionality of any aspect of the licensee's business or operations. Requires licensees domiciled in this State to annually submit a written certification of compliance to the Director of Insurance. Provides that a licensee shall notify the Director as promptly as possible, but not later than 72 hours from a determination that a cybersecurity event has occurred in specified circumstances. Provides standards and procedures for risk management, data security, and notification and investigation of cybersecurity events resulting in unauthorized access to, disruption of, or misuse of nonpublic data. Provides that the Director has the power to examine and investigate to determine whether a licensee has been or is engaged in any conduct in violation of the Act. Grants the Department of Insurance rulemaking authority to implement the Act. Provides that any documents, materials, or other information obtained pursuant to the Act is confidential by law and privileged, is not subject to the Freedom of Information Act, is not subject to subpoena, and is not subject to discovery or admissible in evidence in any private civil action. Makes a conforming change in the Freedom of Information Act. Defines terms. Effective January 1, 2022.


LRB102 09898 BMS 15216 b

 

 

A BILL FOR

 

HB3040LRB102 09898 BMS 15216 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Insurance Data Security Act.
 
6    Section 5. Purpose.
7    (a) The purpose of this Act is to establish standards for
8data security and standards for the investigation of and
9notification to the Director of a cybersecurity event
10applicable to licensees, as defined in Section 10.
11    (b) This Act may not be construed to create or imply a
12private cause of action for violation of its provisions nor
13may it be construed to curtail a private cause of action that
14would otherwise exist in the absence of this Act.
 
15    Section 10. Definitions. As used in this Act:
16    "Authorized individual" means an individual known to and
17screened by the licensee and determined to be necessary and
18appropriate to have access to the nonpublic information held
19by the licensee and its information systems.
20    "Consumer" means an individual, including, but not limited
21to, an applicant, a policyholder, an insured, a beneficiary, a
22claimant, and a certificate holder, who is a resident of this

 

 

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1State and whose nonpublic information is in a licensee's
2possession, custody, or control.
3    "Cybersecurity event" means an event resulting in
4unauthorized access to, disruption of, or misuse of an
5information system or information stored on such information
6system. "Cybersecurity event" does not include the
7unauthorized acquisition of encrypted nonpublic information if
8the encryption, process, or key is not also acquired,
9released, or used without authorization. "Cybersecurity event"
10does not include an event with regard to which the licensee has
11determined that the nonpublic information accessed by an
12unauthorized person has not been used or released and has been
13returned or destroyed.
14    "Department" means the Department of Insurance.
15    "Director" means the Director of Insurance.
16    "Encrypted" means the transformation of data into a form
17that results in a low probability of assigning meaning without
18the use of a protective process or key.
19    "Information security program" means the administrative,
20technical, and physical safeguards that a licensee uses to
21access, collect, distribute, process, protect, store, use,
22transmit, dispose of, or otherwise handle nonpublic
23information.
24    "Information system" means a discrete set of electronic
25information resources organized for the collection,
26processing, maintenance, use, sharing, dissemination, or

 

 

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1disposition of electronic information, as well as any
2specialized system, such as an industrial or process control
3system, a telephone switching and private branch exchange
4system, or an environmental control system.
5    "Licensee" means any person licensed, authorized to
6operate, or registered as an insurer, or required to be
7licensed, authorized, or registered in accordance with the
8insurance laws of this State, but does not include a
9purchasing group or risk retention group chartered and
10licensed in a state other than this State or a licensee that is
11acting as an assuming insurer that is domiciled in another
12state or jurisdiction.
13    "Multi-factor authentication" means authentication
14through verification of at least 2 of the following types of
15authentication factors:
16        (1) knowledge factors, such as a password;
17        (2) possession factors, such as a token or text
18    message on a mobile phone; or
19        (3) inherence factors, such as a biometric
20    characteristic.
21    "Nonpublic information" means information that is not
22publicly available information and is:
23        (1) business-related information of a licensee the
24    tampering with which, or unauthorized disclosure, access,
25    or use of which, would cause a material adverse impact to
26    the business, operations, or security of the licensee;

 

 

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1        (2) any information concerning a consumer that,
2    because of name, number, personal mark, or other
3    identifier, can be used to identify such consumer in
4    combination with any one or more of the following data
5    elements:
6            (a) Social Security number;
7            (b) driver's license number or non-driver
8        identification card number;
9            (c) account number and credit or debit card
10        number;
11            (d) any security code, access code, or password
12        that would permit access to a consumer's financial
13        account; or
14            (e) biometric records; or
15        (3) any information or data, except age or gender, in
16    any form or medium created by or derived from a health care
17    provider or a consumer and that relates to:
18            (a) the past, present, or future physical, mental,
19        or behavioral health or condition of any consumer or a
20        member of the consumer's family;
21            (b) the provision of health care to any consumer;
22        or
23            (c) payment for the provision of health care to
24        any consumer.
25    "Person" means any individual or any non-governmental
26entity, including, but not limited to, any non-governmental

 

 

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1partnership, corporation, branch, agency, or association.
2    "Publicly available information" means any information
3that a licensee has a reasonable basis to believe is lawfully
4made available to the general public from: federal, state, or
5local government records; widely distributed media; or
6disclosures to the general public that are required to be made
7by federal, state, or local law. For the purposes of this
8definition, a licensee has a reasonable basis to believe that
9information is lawfully made available to the general public
10if the licensee has taken steps to determine:
11        (1) that the information is of the type that is
12    available to the general public; and
13        (2) whether a consumer can direct that the information
14    not be made available to the general public and, if so,
15    that such consumer has not done so.
16    "Risk assessment" means the risk assessment that each
17licensee is required to conduct under subsection (c) of
18Section 15 of this Act.
19    "State" means the State of Illinois.
20    "Third-party service provider" means a person, not
21otherwise defined as a licensee, that contracts with a
22licensee to maintain, process, store, or is otherwise
23permitted access to nonpublic information through its
24provision of services to the licensee.
 
25    Section 15. Information security program.

 

 

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1    (a) No later than one year after the effective date of this
2Act, each licensee shall develop, implement, and maintain a
3comprehensive written information security program based on
4the licensee's risk assessment. The information security
5program shall contain administrative, technical, and physical
6safeguards for the protection of nonpublic information and the
7licensee's information system. The information security
8program shall be commensurate with the size and complexity of
9the licensee, the nature and scope of the licensee's
10activities, including its use of third-party service
11providers, and the sensitivity of the nonpublic information
12used by the licensee or in the licensee's possession, custody,
13or control.
14    (b) A licensee's information security program shall be
15designed to:
16        (1) protect the security and confidentiality of
17    nonpublic information and the security of the information
18    system;
19        (2) protect against any threats or hazards to the
20    security or integrity of nonpublic information and the
21    information system;
22        (3) protect against unauthorized access to or use of
23    nonpublic information and minimize the likelihood of harm
24    to any consumer; and
25        (4) define and periodically reevaluate a schedule for
26    retention of nonpublic information and a mechanism for its

 

 

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1    destruction when no longer needed.
2    (c) The licensee shall:
3        (1) designate one or more employees, an affiliate, or
4    an outside vendor designated to act on behalf of the
5    licensee who is responsible for the information security
6    program;
7        (2) identify reasonably foreseeable internal or
8    external threats that could result in unauthorized access,
9    transmission, disclosure, misuse, alteration, or
10    destruction of nonpublic information, including the
11    security of information systems and nonpublic information
12    that is accessible to, or held by, third-party service
13    providers;
14        (3) assess the likelihood and potential damage of
15    these threats, taking into consideration the sensitivity
16    of the nonpublic information;
17        (4) assess the sufficiency of policies, procedures,
18    information systems, and other safeguards in place to
19    manage these threats, including consideration of threats
20    in each relevant area of the licensee's operations,
21    including:
22            (A) employee training and management;
23            (B) information systems, including network and
24        software design, as well as information
25        classification, governance, processing, storage,
26        transmission, and disposal; and

 

 

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1            (C) detecting, preventing, and responding to
2        attacks, intrusions, or other system failures; and
3        (5) implement information safeguards to manage the
4    threats identified in its ongoing assessment, and assess
5    the effectiveness of the safeguards' key controls,
6    systems, and procedures no less than annually.
7    (d) Based on its risk assessment, the licensee shall:
8        (1) design its information security program to
9    mitigate the identified risks, commensurate with the size
10    and complexity of the licensee's activities, including its
11    use of third-party service providers, and the sensitivity
12    of the nonpublic information used by the licensee or in
13    the licensee's possession, custody, or control;
14        (2) determine which security measures listed below are
15    appropriate and implement such security measures:
16            (A) place access controls on information systems,
17        including controls to authenticate and permit access
18        only to authorized individuals to protect against the
19        unauthorized acquisition of nonpublic information;
20            (B) identify and manage the data, personnel,
21        devices, systems, and facilities that enable the
22        organization to achieve business purposes in
23        accordance with their relative importance to business
24        objectives and the organization's risk strategy;
25            (C) restrict access at physical locations
26        containing nonpublic information only to authorized

 

 

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1        individuals;
2            (D) protect by encryption or other appropriate
3        means all nonpublic information while it is
4        transmitted over an external network and all nonpublic
5        information stored on a laptop computer or other
6        portable computing or storage device or media;
7            (E) adopt secure development practices for
8        in-house developed applications utilized by the
9        licensee and procedures for evaluating, assessing, or
10        testing the security of externally developed
11        applications utilized by the licensee;
12            (F) modify the information system in accordance
13        with the licensee's information security program;
14            (G) utilize effective controls, which may include
15        multi-factor authentication procedures for any
16        individual accessing nonpublic information;
17            (H) regularly test and monitor systems and
18        procedures to detect actual and attempted attacks on,
19        or intrusions into, information systems;
20            (I) include audit trails within the information
21        security program designed to detect and respond to
22        cybersecurity events and designed to reconstruct
23        material financial transactions sufficient to support
24        normal operations and obligations of the licensee;
25            (J) implement measures to protect against
26        destruction, loss, or damage of nonpublic information

 

 

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1        due to environmental hazards, such as fire and water
2        damage or other catastrophes or technological
3        failures; and
4            (K) develop, implement, and maintain procedures
5        for the secure disposal of nonpublic information in
6        any format.
7        (3) include cybersecurity risks in the licensee's
8    enterprise risk management process;
9        (4) stay informed regarding emerging threats or
10    vulnerabilities and utilize reasonable security measures
11    when sharing information relative to the character of the
12    sharing and the type of information shared; and
13        (5) provide its personnel with cybersecurity awareness
14    training that is updated as necessary to reflect risks
15    identified by the licensee in the risk assessment.
16    (e) If the licensee has a board of directors, the board or
17an appropriate committee of the board shall, at a minimum:
18        (1) require the licensee's executive management or its
19    delegates to develop, implement, and maintain the
20    licensee's information security program; and
21        (2) require the licensee's executive management or its
22    delegates to report in writing, at least annually, the
23    following information:
24            (A) the overall status of the information security
25        program and the licensee's compliance with this Act;
26        and

 

 

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1            (B) material matters related to the information
2        security program, addressing issues such as risk
3        assessment, risk management and control decisions,
4        third-party service provider arrangements, results of
5        testing, cybersecurity events or violations and
6        management's responses thereto, and recommendations
7        for changes in the information security program.
8    If executive management delegates any of its
9responsibilities under this Section, it shall oversee the
10development, implementation, and maintenance of the licensee's
11information security program prepared by the delegates and
12shall receive a report from the delegates complying with the
13requirements of the report to the board of directors as
14provided in paragraph (2) of this subsection (e).
15    (f) A licensee shall exercise due diligence in selecting
16its third-party service provider and, no later than 2 years
17after the effective date of this Act, shall require a
18third-party service provider to implement appropriate
19administrative, technical, and physical measures to protect
20and secure the information systems and nonpublic information
21that are accessible to, or held by, the third-party service
22provider.
23    (g) The licensee shall monitor, evaluate, and adjust, as
24appropriate, the information security program consistent with
25any relevant changes in technology, the sensitivity of its
26nonpublic information, internal or external threats to

 

 

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1information, and the licensee's own changing business
2arrangements, such as mergers and acquisitions, alliances and
3joint ventures, outsourcing arrangements, and changes to
4information systems.
5    (h) As part of its information security program, each
6licensee shall establish a written incident response plan
7designed to promptly respond to and recover from any
8cybersecurity event that compromises the confidentiality,
9integrity, or availability of nonpublic information in its
10possession, the licensee's information systems, or the
11continuing functionality of any aspect of the licensee's
12business or operations.
13    Such incident response plan shall address the following
14areas:
15        (1) the internal process for responding to a
16    cybersecurity event;
17        (2) the goals of the incident response plan;
18        (3) the definition of clear roles, responsibilities,
19    and levels of decision-making authority;
20        (4) external and internal communications and
21    information sharing;
22        (5) identification of requirements for the remediation
23    of any identified weaknesses in information systems and
24    associated controls;
25        (6) documentation and reporting regarding
26    cybersecurity events and related incident response

 

 

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1    activities; and
2        (7) the evaluation and revision as necessary of the
3    incident response plan following a cybersecurity event.
4    (i) Annually by February 15, each insurer domiciled in
5this State shall submit to the Director a written statement
6certifying that the insurer is in compliance with the
7requirements set forth in this Section. Each insurer shall
8maintain for examination by the Department all records,
9schedules, and data supporting this certificate for a period
10of 5 years. To the extent an insurer has identified areas,
11systems, or processes that require material improvement,
12updating, or redesign, the insurer shall document the
13identification and the remedial efforts planned and underway
14to address such areas, systems, or processes. Such
15documentation must be available for inspection by the
16Director.
 
17    Section 20. Investigation of a cybersecurity event.
18    (a) If the licensee learns that a cybersecurity event has
19or may have occurred, the licensee, or an outside vendor or
20service provider designated to act on behalf of the licensee,
21shall conduct a prompt investigation.
22    (b) During the investigation, the licensee, or an outside
23vendor or service provider designated to act on behalf of the
24licensee, shall perform or oversee reasonable measures to
25restore the security of the information systems compromised in

 

 

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1the cybersecurity event in order to prevent further
2unauthorized acquisition, release, or use of nonpublic
3information in the licensee's possession, custody, or control,
4and shall, at a minimum, determine as much of the following
5information as possible:
6        (1) whether a cybersecurity event has occurred;
7        (2) the nature and scope of the cybersecurity event;
8    and
9        (3) any nonpublic information that may have been
10    involved in the cybersecurity event.
11    (c) If the licensee learns that a cybersecurity event has
12or may have occurred in a system maintained by a third-party
13service provider, the licensee shall complete the steps listed
14in subsection (b) or confirm and document that the third-party
15service provider has completed those steps.
16    (d) The licensee shall maintain records concerning all
17cybersecurity events for a period of at least 5 years after the
18date of the cybersecurity event and shall produce those
19records upon demand of the Director.
 
20    Section 25. Notification of a cybersecurity event.
21    (a) Each licensee shall notify the Director as promptly as
22possible, but in no event later than 72 hours from a
23determination that a cybersecurity event has occurred, when
24either of the following criteria has been met:
25        (1) this State is the licensee's state of domicile or

 

 

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1    home state; or
2        (2) the licensee reasonably believes that the
3    nonpublic information involved is of 250 or more consumers
4    residing in this State and that the cybersecurity event is
5    either of the following:
6            (A) a cybersecurity event impacting the licensee
7        of which notice is required to be provided to any
8        government body, self-regulatory agency, or any other
9        supervisory body pursuant to any state or federal law;
10        or
11            (B) a cybersecurity event that has a reasonable
12        likelihood of materially harming: (i) any consumer
13        residing in this State; or (ii) any material part of
14        the normal operations of the licensee.
15    (b) The licensee shall provide as much of the following
16information as possible in electronic form as directed by the
17Director:
18        (1) the date of the cybersecurity event;
19        (2) a description of how the information was exposed,
20    lost, stolen, or breached, including the specific roles
21    and responsibilities of third-party service providers, if
22    any;
23        (3) how the cybersecurity event was discovered;
24        (4) whether any lost, stolen, or breached information
25    has been recovered and, if so, how it was recovered;
26        (5) the identity of the source of the cybersecurity

 

 

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1    event;
2        (6) whether the licensee has filed a police report or
3    has notified any regulatory, government, or law
4    enforcement agencies and, if so, when such notification
5    was provided;
6        (7) a description of the specific types of information
7    acquired without authorization; in this paragraph,
8    "specific types of information" means particular data
9    elements, including types of medical information, types of
10    financial information, or types of information allowing
11    identification of the consumer;
12        (8) the period during which the information system was
13    compromised by the cybersecurity event;
14        (9) the number of total consumers in this State
15    affected by the cybersecurity event; the licensee shall
16    provide the best estimate in the initial report to the
17    Director and shall update this estimate with each
18    subsequent report to the Director;
19        (10) the results of any internal review identifying a
20    lapse in either automated controls or internal procedures
21    or confirming that all automated controls or internal
22    procedures were followed;
23        (11) a description of events being undertaken to
24    remediate the situation that permitted the cybersecurity
25    event to occur;
26        (12) a copy of the licensee's privacy policy and a

 

 

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1    statement outlining the steps the licensee will take to
2    investigate and notify consumers affected by the
3    cybersecurity event; and
4        (13) the name of a contact person who is both familiar
5    with the cybersecurity event and authorized to act for the
6    licensee.
7    The licensee has a continuing obligation to update and
8supplement initial and subsequent notifications to the
9Director concerning the cybersecurity event.
10    (c) The licensee shall comply with the Personal
11Information Protection Act, as applicable, and provide a copy
12of the notice sent to consumers under that statute to the
13Director when a licensee is required to notify the Director
14under subsection (a).
15    (d) If the licensee has become aware of a cybersecurity
16event in a system maintained by a third-party service
17provider, the licensee shall treat the event as it would under
18subsection (a).
19    The computation of licensee's deadlines shall begin on the
20day after the third-party service provider notifies the
21licensee of the cybersecurity event or the licensee otherwise
22has actual knowledge of the cybersecurity event, whichever is
23sooner.
24    Nothing in this Act shall prevent or abrogate an agreement
25between a licensee and another licensee, a third-party service
26provider, or any other party to fulfill any of the

 

 

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1investigation requirements imposed under Section 20 or notice
2requirements imposed under this Section.
3    (e)(1) In the case of a cybersecurity event involving
4nonpublic information that is used by the licensee that is
5acting as an assuming insurer or in the possession, custody,
6or control of a licensee that is acting as an assumed insurer
7and that does not have a direct contractual relationship with
8the affected consumers, the assuming insurer shall notify its
9affected ceding insurers and the Director of its state of
10domicile within 72 hours of making the determination that a
11cybersecurity event has occurred.
12    The ceding insurers that have a direct contractual
13relationship with the affected consumers shall fulfill the
14consumer notification requirements imposed under the Personal
15Information Protection Act and any other notification
16requirements relating to a cybersecurity event under this
17Section.
18    (2) In the case of a cybersecurity event involving
19nonpublic information that is in the possession, custody, or
20control of a third-party service provider of a licensee that
21is an assuming insurer, the assuming insurer shall notify its
22affected ceding insurers and the Director of its state of
23domicile within 72 hours of receiving notice from its
24third-party service provider that a cybersecurity event has
25occurred.
26    The ceding insurers that have a direct contractual

 

 

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1relationship with affected consumers shall fulfill the
2consumer notification requirements imposed under the Personal
3Information Protection Act and any other notification
4requirements relating to a cybersecurity event imposed under
5this Section.
6    (f) In the case of a cybersecurity event involving
7nonpublic information that is in the possession, custody, or
8control of a licensee that is an insurer or its third-party
9service provider and for which a consumer accessed the
10insurer's services through an independent insurance producer,
11the insurer shall notify the producers of record of all
12affected consumers as soon as practicable as directed by the
13Director.
14    The insurer is excused from this obligation for those
15instances in which it does not have the current producer of
16record information for any individual consumer.
 
17    Section 30. Power of the Director.
18    (a) The Director has power to examine and investigation
19into the affairs of any licensee to determine whether the
20licensee has been or is engaged in any conduct in violation of
21this Act. This power is in addition to the powers the Director
22has under the Illinois Insurance Code. Any such investigation
23or examination shall be conducted pursuant to the requirements
24of the Illinois Insurance Code.
25    (b) Whenever the Director has reason to believe that a

 

 

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1licensee has been or is engaged in conduct in this State that
2violates this Act, the Director may take action that is
3necessary or appropriate to enforce the provisions of this
4Act.
 
5    Section 35. Confidentiality.
6    (a) Any documents, materials, or other information in the
7control or possession of the Department that is furnished by
8the licensee or an employee or agent thereof acting on behalf
9of the licensee in accordance with subsection (i) of Section
1015 or paragraph (2), (3), (4), (5), (8), (10), or (11) of
11subsection (b) of Section 25 or that are obtained by, created
12by, or disclosed to the Director in an investigation or
13examination under Section 30 is confidential by law and
14privileged, is not subject to the Freedom of Information Act,
15is not subject to subpoena, and is not subject to discovery or
16admissible in evidence in any private civil action. However,
17the Director may use the documents, materials, or other
18information in the furtherance of any regulatory or legal
19action brought as a part of the Director's duties. The
20Director shall not otherwise make the documents, materials, or
21other information public without the prior written consent of
22the licensee.
23    (b) Neither the Director nor any person who received
24documents, materials, or other information while acting under
25the authority of the Director shall be permitted or required

 

 

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1to testify in any private civil action concerning any
2confidential documents, materials, or information subject to
3subsection (a).
4    (c) In order to assist in the performance of the
5Director's duties under this Act, the Director:
6        (1) may share documents, materials, or other
7    information, including the confidential and privileged
8    documents, materials, or information subject to subsection
9    (a), with other state, federal, and international
10    regulatory agencies, with the National Association of
11    Insurance Commissioners, its affiliates or subsidiaries,
12    and with state, federal, and international law enforcement
13    authorities, provided that the recipient agrees in writing
14    to maintain the confidentiality and privileged status of
15    the document, material, or other information;
16        (2) may receive documents, materials, or information,
17    including otherwise confidential and privileged documents,
18    materials, or information, from the National Association
19    of Insurance Commissioners, its affiliates or
20    subsidiaries, and from regulatory and law enforcement
21    officials of other foreign or domestic jurisdictions, and
22    shall maintain as confidential and privileged any
23    document, material, or information received with notice or
24    the understanding that it is confidential or privileged
25    under the laws of the jurisdiction that is the source of
26    the document, material, or information;

 

 

HB3040- 22 -LRB102 09898 BMS 15216 b

1        (3) may share documents, materials, or other
2    information subject to subsection (a) with a third-party
3    consultant or vendor, if the consultant agrees in writing
4    to maintain the confidentiality and privileged status of
5    the document, material, or other information; and
6        (4) may enter into agreements governing sharing and
7    use of information consistent with this subsection.
8    (d) No waiver of any applicable privilege or claim of
9confidentiality in the documents, materials, or information
10shall occur as a result of disclosure to the Director under
11this Section or as a result of sharing as authorized in
12subsection (c).
13    (e) Nothing in this Act shall prohibit the Director from
14releasing final, adjudicated actions that are open to public
15inspection pursuant to the Illinois Insurance Code to a
16database or other clearinghouse service maintained by the
17National Association of Insurance Commissioners, its
18affiliates, or its subsidiaries.
 
19    Section 40. Exceptions.
20    (a) The following exceptions shall apply to this Act:
21        (1) A licensee with fewer than 10 employees, including
22    any independent contractors, is exempt from Section 15 of
23    this Act.
24        (2) A licensee subject to the federal Health Insurance
25    Portability and Accountability Act that has established

 

 

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1    and maintains an information security program pursuant to
2    such statutes, rules, regulations, procedures, or
3    guidelines established thereunder will be considered to
4    meet the requirements of Section 15, provided that
5    licensee is compliant with, and submits a written
6    statement certifying its compliance with, the same.
7        (3) An employee, agent, representative, or designee of
8    a licensee, who is also a licensee, is exempt from Section
9    15 and need not develop its own information security
10    program to the extent that the employee, agent,
11    representative, or designee is covered by the information
12    security program of the other licensee.
13    (b) If a licensee ceases to qualify for an exception, such
14licensee has 180 days to comply with this Act.
 
15    Section 45. Penalties. In the case of a violation of this
16Act, a licensee may be penalized in accordance with the
17provisions of the Illinois Insurance Code.
 
18    Section 50. Rules. The Department may, in accordance with
19the Illinois Administrative Procedure Act, adopt rules to
20implement the provisions of this Act.
 
21    Section 55. Severability. If any provision of this Act or
22its application to any person or circumstance is for any
23reason held to be invalid, the remainder of this Act and the

 

 

HB3040- 24 -LRB102 09898 BMS 15216 b

1application of such provision to other persons or
2circumstances shall not be affected.
 
3    Section 900. The Freedom of Information Act is amended by
4changing Section 7.5 as follows:
 
5    (5 ILCS 140/7.5)
6    Sec. 7.5. Statutory exemptions. To the extent provided for
7by the statutes referenced below, the following shall be
8exempt from inspection and copying:
9        (a) All information determined to be confidential
10    under Section 4002 of the Technology Advancement and
11    Development Act.
12        (b) Library circulation and order records identifying
13    library users with specific materials under the Library
14    Records Confidentiality Act.
15        (c) Applications, related documents, and medical
16    records received by the Experimental Organ Transplantation
17    Procedures Board and any and all documents or other
18    records prepared by the Experimental Organ Transplantation
19    Procedures Board or its staff relating to applications it
20    has received.
21        (d) Information and records held by the Department of
22    Public Health and its authorized representatives relating
23    to known or suspected cases of sexually transmissible
24    disease or any information the disclosure of which is

 

 

HB3040- 25 -LRB102 09898 BMS 15216 b

1    restricted under the Illinois Sexually Transmissible
2    Disease Control Act.
3        (e) Information the disclosure of which is exempted
4    under Section 30 of the Radon Industry Licensing Act.
5        (f) Firm performance evaluations under Section 55 of
6    the Architectural, Engineering, and Land Surveying
7    Qualifications Based Selection Act.
8        (g) Information the disclosure of which is restricted
9    and exempted under Section 50 of the Illinois Prepaid
10    Tuition Act.
11        (h) Information the disclosure of which is exempted
12    under the State Officials and Employees Ethics Act, and
13    records of any lawfully created State or local inspector
14    general's office that would be exempt if created or
15    obtained by an Executive Inspector General's office under
16    that Act.
17        (i) Information contained in a local emergency energy
18    plan submitted to a municipality in accordance with a
19    local emergency energy plan ordinance that is adopted
20    under Section 11-21.5-5 of the Illinois Municipal Code.
21        (j) Information and data concerning the distribution
22    of surcharge moneys collected and remitted by carriers
23    under the Emergency Telephone System Act.
24        (k) Law enforcement officer identification information
25    or driver identification information compiled by a law
26    enforcement agency or the Department of Transportation

 

 

HB3040- 26 -LRB102 09898 BMS 15216 b

1    under Section 11-212 of the Illinois Vehicle Code.
2        (l) Records and information provided to a residential
3    health care facility resident sexual assault and death
4    review team or the Executive Council under the Abuse
5    Prevention Review Team Act.
6        (m) Information provided to the predatory lending
7    database created pursuant to Article 3 of the Residential
8    Real Property Disclosure Act, except to the extent
9    authorized under that Article.
10        (n) Defense budgets and petitions for certification of
11    compensation and expenses for court appointed trial
12    counsel as provided under Sections 10 and 15 of the
13    Capital Crimes Litigation Act. This subsection (n) shall
14    apply until the conclusion of the trial of the case, even
15    if the prosecution chooses not to pursue the death penalty
16    prior to trial or sentencing.
17        (o) Information that is prohibited from being
18    disclosed under Section 4 of the Illinois Health and
19    Hazardous Substances Registry Act.
20        (p) Security portions of system safety program plans,
21    investigation reports, surveys, schedules, lists, data, or
22    information compiled, collected, or prepared by or for the
23    Regional Transportation Authority under Section 2.11 of
24    the Regional Transportation Authority Act or the St. Clair
25    County Transit District under the Bi-State Transit Safety
26    Act.

 

 

HB3040- 27 -LRB102 09898 BMS 15216 b

1        (q) Information prohibited from being disclosed by the
2    Personnel Record Review Act.
3        (r) Information prohibited from being disclosed by the
4    Illinois School Student Records Act.
5        (s) Information the disclosure of which is restricted
6    under Section 5-108 of the Public Utilities Act.
7        (t) All identified or deidentified health information
8    in the form of health data or medical records contained
9    in, stored in, submitted to, transferred by, or released
10    from the Illinois Health Information Exchange, and
11    identified or deidentified health information in the form
12    of health data and medical records of the Illinois Health
13    Information Exchange in the possession of the Illinois
14    Health Information Exchange Office due to its
15    administration of the Illinois Health Information
16    Exchange. The terms "identified" and "deidentified" shall
17    be given the same meaning as in the Health Insurance
18    Portability and Accountability Act of 1996, Public Law
19    104-191, or any subsequent amendments thereto, and any
20    regulations promulgated thereunder.
21        (u) Records and information provided to an independent
22    team of experts under the Developmental Disability and
23    Mental Health Safety Act (also known as Brian's Law).
24        (v) Names and information of people who have applied
25    for or received Firearm Owner's Identification Cards under
26    the Firearm Owners Identification Card Act or applied for

 

 

HB3040- 28 -LRB102 09898 BMS 15216 b

1    or received a concealed carry license under the Firearm
2    Concealed Carry Act, unless otherwise authorized by the
3    Firearm Concealed Carry Act; and databases under the
4    Firearm Concealed Carry Act, records of the Concealed
5    Carry Licensing Review Board under the Firearm Concealed
6    Carry Act, and law enforcement agency objections under the
7    Firearm Concealed Carry Act.
8        (w) Personally identifiable information which is
9    exempted from disclosure under subsection (g) of Section
10    19.1 of the Toll Highway Act.
11        (x) Information which is exempted from disclosure
12    under Section 5-1014.3 of the Counties Code or Section
13    8-11-21 of the Illinois Municipal Code.
14        (y) Confidential information under the Adult
15    Protective Services Act and its predecessor enabling
16    statute, the Elder Abuse and Neglect Act, including
17    information about the identity and administrative finding
18    against any caregiver of a verified and substantiated
19    decision of abuse, neglect, or financial exploitation of
20    an eligible adult maintained in the Registry established
21    under Section 7.5 of the Adult Protective Services Act.
22        (z) Records and information provided to a fatality
23    review team or the Illinois Fatality Review Team Advisory
24    Council under Section 15 of the Adult Protective Services
25    Act.
26        (aa) Information which is exempted from disclosure

 

 

HB3040- 29 -LRB102 09898 BMS 15216 b

1    under Section 2.37 of the Wildlife Code.
2        (bb) Information which is or was prohibited from
3    disclosure by the Juvenile Court Act of 1987.
4        (cc) Recordings made under the Law Enforcement
5    Officer-Worn Body Camera Act, except to the extent
6    authorized under that Act.
7        (dd) Information that is prohibited from being
8    disclosed under Section 45 of the Condominium and Common
9    Interest Community Ombudsperson Act.
10        (ee) Information that is exempted from disclosure
11    under Section 30.1 of the Pharmacy Practice Act.
12        (ff) Information that is exempted from disclosure
13    under the Revised Uniform Unclaimed Property Act.
14        (gg) Information that is prohibited from being
15    disclosed under Section 7-603.5 of the Illinois Vehicle
16    Code.
17        (hh) Records that are exempt from disclosure under
18    Section 1A-16.7 of the Election Code.
19        (ii) Information which is exempted from disclosure
20    under Section 2505-800 of the Department of Revenue Law of
21    the Civil Administrative Code of Illinois.
22        (jj) Information and reports that are required to be
23    submitted to the Department of Labor by registering day
24    and temporary labor service agencies but are exempt from
25    disclosure under subsection (a-1) of Section 45 of the Day
26    and Temporary Labor Services Act.

 

 

HB3040- 30 -LRB102 09898 BMS 15216 b

1        (kk) Information prohibited from disclosure under the
2    Seizure and Forfeiture Reporting Act.
3        (ll) Information the disclosure of which is restricted
4    and exempted under Section 5-30.8 of the Illinois Public
5    Aid Code.
6        (mm) Records that are exempt from disclosure under
7    Section 4.2 of the Crime Victims Compensation Act.
8        (nn) Information that is exempt from disclosure under
9    Section 70 of the Higher Education Student Assistance Act.
10        (oo) Communications, notes, records, and reports
11    arising out of a peer support counseling session
12    prohibited from disclosure under the First Responders
13    Suicide Prevention Act.
14        (pp) Names and all identifying information relating to
15    an employee of an emergency services provider or law
16    enforcement agency under the First Responders Suicide
17    Prevention Act.
18        (qq) Information and records held by the Department of
19    Public Health and its authorized representatives collected
20    under the Reproductive Health Act.
21        (rr) Information that is exempt from disclosure under
22    the Cannabis Regulation and Tax Act.
23        (ss) Data reported by an employer to the Department of
24    Human Rights pursuant to Section 2-108 of the Illinois
25    Human Rights Act.
26        (tt) Recordings made under the Children's Advocacy

 

 

HB3040- 31 -LRB102 09898 BMS 15216 b

1    Center Act, except to the extent authorized under that
2    Act.
3        (uu) Information that is exempt from disclosure under
4    Section 50 of the Sexual Assault Evidence Submission Act.
5        (vv) Information that is exempt from disclosure under
6    subsections (f) and (j) of Section 5-36 of the Illinois
7    Public Aid Code.
8        (ww) Information that is exempt from disclosure under
9    Section 16.8 of the State Treasurer Act.
10        (xx) Information that is exempt from disclosure or
11    information that shall not be made public under the
12    Illinois Insurance Code.
13        (yy) Information prohibited from being disclosed under
14    the Illinois Educational Labor Relations Act.
15        (zz) Information prohibited from being disclosed under
16    the Illinois Public Labor Relations Act.
17        (aaa) Information prohibited from being disclosed
18    under Section 1-167 of the Illinois Pension Code.
19        (bbb) Information that is exempt from disclosure under
20    Section 35 of the Insurance Data Security Act.
21(Source: P.A. 100-20, eff. 7-1-17; 100-22, eff. 1-1-18;
22100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff.
238-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517,
24eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19;
25100-863, eff. 8-14-18; 100-887, eff. 8-14-18; 101-13, eff.
266-12-19; 101-27, eff. 6-25-19; 101-81, eff. 7-12-19; 101-221,

 

 

HB3040- 32 -LRB102 09898 BMS 15216 b

1eff. 1-1-20; 101-236, eff. 1-1-20; 101-375, eff. 8-16-19;
2101-377, eff. 8-16-19; 101-452, eff. 1-1-20; 101-466, eff.
31-1-20; 101-600, eff. 12-6-19; 101-620, eff 12-20-19; 101-649,
4eff. 7-7-20.)
 
5    Section 999. Effective date. This Act takes effect on
6January 1, 2022.