Insurance: other; data security enforcement; modify. Amends secs. 553, 561 & 563 of 1956 PA 218 (MCL 500.553 et seq.) & adds secs. 564 & 564a.

HB 6268 updates Michigan's insurance code to strengthen data security requirements for insurers and related licensees by modifying existing definitions and adding new sections. The bill clarifies what constitutes a "cybersecurity event" and "nonpublic information," specifically including sensitive data like social security numbers, financial account details, and health records. It mandates that licensees notify affected residents without unreasonable delay if unencrypted personal data is accessed or if encrypted data is compromised along with its decryption key. Additionally, the legislation requires licensees to report such security breaches to the owners or licensors of the data if the licensee does not own the information. These changes aim to ensure clearer standards for protecting consumer data and managing security incidents within the insurance industry.