Michigan Laws 500.565 – Exemption for certain licensees; timeline for implementation and compliance
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 500.565
- Information security program: means the administrative, technical, and physical safeguards that a licensee uses to access, collect, distribute, process, protect, store, use, transmit, dispose of, or otherwise handle nonpublic information. See Michigan Laws 500.553
- Licensee: means a licensed insurer or producer, and other persons licensed or required to be licensed, authorized, or registered, or holding or required to hold a certificate of authority under this act. See Michigan Laws 500.553
- Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
(1) A licensee that has fewer than 25 employees, including any independent contractors, is exempt from section 555.
(2) A licensee subject to and in compliance with the health insurance portability and accountability act of 1996, Public Law 104-191, and with regulations promulgated under that act, is not required to comply with this chapter except for the requirements under section 559 and 561.
(3) An employee, agent, representative, or designee of a licensee, who is also a licensee, is exempt from section 555 and does not need to develop its own information security program to the extent that the employee, agent, representative, or designee is covered by the information security program of the other licensee.
(4) If a licensee ceases to qualify for the exception under subsection (1), the licensee has 180 days to comply with this chapter.
(5) This chapter takes effect on January 20, 2021. A licensee shall implement section 555 by January 20, 2022. However, a licensee has until January 20, 2023 to implement section 555(6).