"As drafted, this bill would prevent the flow of information needed for our economy to function efficiently," he said. "For example, under this bill's provisions, an individual could prohibit an auto insurer from obtaining his driving record from the state department of motor vehicles via the Internet. That would void normal business activity now permitted under the Driver's Privacy Protection Act."

He added that under the proposed bill, a workers' compensation insurer could not get information indicating a pre-existing condition that would affect treatment and return to work.

"Online insurance companies and other businesses would be held to a stricter standard than traditional businesses--both in the information collected and the way in which it could be used," he said. "These multiple standards would lead to a regulatory nightmare."

Earlier this month in the U.S. House of Representatives, Commerce, Trade and Consumer Protection Subcommittee Chairman Cliff Stearns, R-Fla., introduced "similar but less sweeping legislation," the Alliance noted. The Consumer Privacy Protection Act, HR 4678, offers privacy protections only in areas not already addressed by either the Gramm-Leach-Bliley Act or the Health Insurance Portability and Accountability Act, the Alliance added.

"In stark contrast, the House bill covers only the areas in which Congress has not yet acted. This is a more useful and appropriate approach," concluded Mr. Schloman.

(For full coverage of tomorrow's Senate Committee markup, check with the "NU Online News Service" at NationalUnderwriter.com.)