(a)Each licensee shall notify the commissioner as promptly as possible, but in no event later than three business days from a determination that a cybersecurity event involving nonpublic information that is in the possession of a licensee has occurred when either of the following criteria has been met:
(1)This state is the state of domicile of the licensee, in the case of an insurer, or this state is the home state of the licensee, in the case of a producer, as those terms are defined in Section 27-7-1, and the cybersecurity event has a reasonable likelihood of materially harming a consumer residing in this state or reasonable likelihood of materially harming any material part of the normal operation of the licensee.
(2)The licensee reasonably believes that the nonpublic information inv
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(a) Each licensee shall notify the commissioner as promptly as possible, but in no event later than three business days from a determination that a cybersecurity event involving nonpublic information that is in the possession of a licensee has occurred when either of the following criteria has been met:
(1) This state is the state of domicile of the licensee, in the case of an insurer, or this state is the home state of the licensee, in the case of a producer, as those terms are defined in Section 27-7-1, and the cybersecurity event has a reasonable likelihood of materially harming a consumer residing in this state or reasonable likelihood of materially harming any material part of the normal operation of the licensee.
(2) The licensee reasonably believes that the nonpublic information involves 250 or more consumers residing in this state and the cybersecurity event is either of the following:
a. A cybersecurity event impacting the licensee that the licensee is required to notify any government body, self-regulatory agency, or any other supervisory body about pursuant to any state or federal law.
b. A cybersecurity event that has a reasonable likelihood of materially harming either of the following:
1. Any consumer residing in this state.
2. Any material part of the normal operation of the licensee.
(b) The licensee shall provide as much of the following information as possible in electronic form as directed by the commissioner:
(1) The date of the cybersecurity event.
(2) A description of how the information was exposed, lost, stolen, or breached, including the specific roles and responsibilities of any third-party service providers.
(3) How the cybersecurity event was discovered.
(4) Whether any lost, stolen, or breached information has been recovered and if so, how this was done.
(5) The identity of the source of the cybersecurity event.
(6) Whether the licensee has filed a police report or has notified any regulatory, government, or law enforcement agencies and, if so, when the notification was provided.
(7) A description of the specific types of information acquired without authorization. Specific types of information means particular data elements including, for example, types of medical information, types of financial information, or types of information allowing identification of the consumer.
(8) The period during which the information system was compromised by the cybersecurity event.
(9) The number of total consumers in this state affected by the cybersecurity event. The licensee shall provide the best estimate in the initial report to the commissioner and update this estimate with each subsequent report to the commissioner pursuant to this section.
(10) The results of any internal review identifying a lapse in either automated controls or internal procedures, or confirming that all automated controls or internal procedures were followed.
(11) A description of efforts being undertaken to remediate the situation which permitted the cybersecurity event to occur.
(12) A copy of the privacy policy of the licensee and a statement outlining the steps the licensee will take to investigate and notify consumers affected by the cybersecurity event.
(13) The name of a contact person who is both familiar with the cybersecurity event and authorized to act for the licensee.
(c) The licensee shall have a continuing obligation to update and supplement initial and subsequent notifications regarding material changes to previously provided information relating to the cybersecurity event.
(d) The licensee shall comply with the Alabama Data Breach Notifications Act of 2018, Chapter 38 of Title 8, as applicable and provide a copy of the notice sent to consumers under the law to the commissioner.
(e)(1) If the licensee becomes aware of a cybersecurity event in a system maintained by a third-party service provider, the licensee shall treat the event in the same manner as provided under subsection (a) unless the third-party service provider provides the notice required under subsection (a) to the commissioner.
(2) The computation of deadlines of a licensee shall begin on the day after the third-party service provider notifies the licensee of the cybersecurity event or the licensee otherwise has actual knowledge of the cybersecurity event, whichever is sooner.
(3) Nothing in this chapter shall prevent or abrogate an agreement between a licensee and another licensee, a third-party service provider, or any other party to fulfill any of the investigation requirements of Section 27-62-5 or the notice requirements of this section.
(f)(1) a. In the case of a cybersecurity event involving nonpublic information that is used by the licensee that is acting as an assuming insurer or in the possession, custody, or control of a licensee that is acting as an assuming insurer and that does not have a direct contractual relationship with the affected consumers, the assuming insurer shall notify its affected ceding insurers and the commissioner of its state of domicile within three business days of making the determination that a cybersecurity event has occurred.
b. The ceding insurers that have a direct contractual relationship with affected consumers shall fulfill the consumer notification requirements under the Alabama Data Breach Notification Act of 2018, Chapter 38 of Title 8, and any other notification requirements relating to a cybersecurity event under this section.
(2)a. In the case of a cybersecurity event involving nonpublic information that is in the possession, custody, or control of a third-party service provider of a licensee that is an assuming insurer, the assuming insurer shall notify its affected ceding insurers and the commissioner of its state of domicile within three business days of receiving notice from its third-party service provider that a cybersecurity event has occurred.
b. The ceding insurers that have a direct contractual relationship with affected consumers shall fulfill the consumer notification requirements under the Alabama Data Breach Notification Act of 2018, Chapter 38 of Title 8, and any other notification requirements relating to a cybersecurity event under this section.
(3) Any licensee acting as an assuming insurer shall have no other notice obligations relating to a cybersecurity event or other data breach under this section or any other law of this state.
(g)(1) In the case of a cybersecurity event involving nonpublic information that is in the possession, custody, or control of a licensee that is an insurer or its third-party service provider for which a consumer accessed the services of the insurer through an independent insurance producer, and for which consumer notice is required by the Alabama Data Breach Notification Act of 2018, Chapter 38 of Title 8, the insurer shall notify the producers of record of all affected consumers of the cybersecurity event no later than the time at which notice is provided to the affected consumers.
(2) The insurer is excused from this obligation for any producers who are not authorized by law or contract to sell, solicit, or negotiate on behalf of the insurer, and in those instances in which the insurer does not have the current producer of record information for an individual consumer.