Bill > SB354

This bill establishes the Insurance Consumer Privacy Protection Act of 2025, which creates comprehensive new privacy standards for insurance companies (licensees) and their service providers in California. The bill requires insurers to implement robust protections for consumers' personal information, including obtaining clear consent before processing or sharing data, providing detailed privacy notices, and giving consumers the right to access, correct, and delete their personal information. Key provisions include mandating data minimization (only collecting information necessary for insurance transactions), requiring written contracts with third-party service providers that protect consumer data, and establishing strict rules about how and when personal information can be processed. The bill also prohibits selling consumer personal information, prevents retaliation against consumers who exercise their privacy rights, and gives the Insurance Commissioner authority to investigate and impose significant penalties (up to $1 million) for violations. Notably, the bill requires insurers to provide consumers with clear information about what data is collected, how it will be used, and provides multiple mechanisms for consumers to control their personal information, including the ability to opt out of certain data processing activities and joint marketing efforts.

Budget and Finance, Business and Industry, Justice

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB354