The regulations, known as Title 10, Sections 2689.1-2689.24 of the California Code of Regulations, are intended to implement and interpret portions of the state's Insurance Information and Privacy Protection Act, enacted in 1980, as well a portions of the federal Gramm-Leach-Bliley Financial Services Modernization Act of 1999.

Also adopted in the proposed regulations also would be the National Association of Insurance Commissioners' 1982 model legislation on the disclosure of consumer information.

The proposed regulations themselves are based on the 2000 version of the NAIC's model privacy regulation and pending Standards for Safeguarding Customer Information Model Regulation.

According to the department, the lack of any regulations on the collection, use, disclosure and protection of consumer information has confused some insurance licensees as to their obligations under California and federal law. The proposed regulations, the department said, are meant to clear up the confusion.

Rey Becker, Alliance vice president of property-casualty in Downers Grove, Ill., said his group will testify against adoption of the regulations because, "Like the 2000 NAIC model regulation, the proposed regulations are at odds with Title V of GLB."

Mr. Becker was referring to the portion of the federal statute that deals with the disclosure of non-public personal information.

"To make matters worse, the proposed regulations also deviate inappropriately from both the 2000 NAIC model regulation and California's existing law, which is based upon a 1982 NAIC model law on the books in 14 other states," Mr. Becker continued.

The Alliance has identified several portions of the regulations that it regards as problematic:

? Claimants and beneficiaries, including commercial liability and workers compensation claimants, are included in the scope of the regulations, contrary to the intent of Title V of GLB.

? A new "duty of confidentiality and care" is created, which includes a "minimum amount necessary" limitation upon both financial and medical record disclosures, also contrary to the intent of Title V.

? The proposed regulations contain numerous California-specific requirements for notice and opt-out language.

? The medical record information article of the regulations is California-specific.

? The non-discrimination section is more restrictive than the 2000 NAIC model.