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SB 354 would modernize insurance privacy rules and add consumer controls, hearings show broad stakeholder negotiation
Summary
SB 354 seeks to update decades‑old insurance privacy law by banning certain sales of personal information for insurance products, expanding correction and deletion rights, and requiring periodic notices; insurance trade groups urged small‑business exemptions and alignment with existing CCPA frameworks.
Senator (presenting SB 354) told the committee the bill implements promises in Proposition 24 by updating insurance privacy law, restricting sale of personal information, and giving consumers rights to correct and delete inaccurate information held by insurers. The Department of Insurance testified in support and described collaboration with stakeholders and significant amendments to address industry concerns.
Independent insurance agents and trade associations largely opposed the bill unless amended, arguing the measure could impose heavy burdens on small agents and deviate from the California Consumer Privacy Act in ways that raise constitutional and operational issues. The author and Department witnesses described substitute performance provisions and other drafting approaches intended to reduce burdens on small agents while preserving consumer protections.
Committee members emphasized continued negotiation on agent scope, substitute performance, and alignment with the CCPA/IAPPA; the item was moved as amended to appropriations for further review.
