California has enacted Senate Bill 354 which, among other provisions, revises the Insurance Information and Privacy Protection Act to establish new standards for the processing and sharing of consumers' personal information.

The bill provides requirements that insurance licensees, surplus line insurers, reinsurers, and their third-party service providers must follow when preparing or requesting investigative reports in connection with the described insurance transactions. Certain information should not be sought in connection with an insurance transaction unless the specified requirements are met. The bill also outlines information that should not be used, in whole or in part, as the basis for an adverse underwriting decision.

Please see Senate Bill 354 for more information.