Nov 14, 2017

Sen. Turner introduces data breach, auto repair bills in state Senate

Sen. Shirley Turner, D-15, introduced two bills into the state Senate on Nov. 9, 2017. The first bill, S-3496, would impose stricter notification requirements in the event of a data breach. The second bill, S-3440, would require insurers to provide disclosures regarding replacement for automobile repairs.

S-3496 would revises the "Identity Theft Prevention Act," to provide that, in the event of any breach of security of computerized records, the disclosure to a customer whose personal information was breached must be made within five business days. Current law provides that disclosure of a breach of security to a customer shall not be required if the business or public entity establishes that misuse of the information is not reasonably possible. The bill clarifies that this determination can only be made after an appropriate investigation by the business or public entity and consultation with relevant federal, state and local agencies responsible for law enforcement.

S-3440 would require every insurer writing private passenger automobile insurance in New Jersey to provide each insured at least annually—and each applicant upon receipt of initial application—with a written disclosure informing consumers that automobile leasing companies may require the use of original equipment manufacturer replacement parts for automobile repairs and whether the collision and comprehensive coverage under the insured’s private-passenger automobile insurance policy will reimburse the insured for 100 percent of the costs if OEM replacement parts are used, and if not, the amount or percentage of the costs that will be the responsibility of the insured if OEM replacement parts are used. The goal of this legislation is to provide consumers with greater transparency and information concerning the use of OEM replacement parts for automobile repairs.

Both bills have been referred to the Senate Commerce Committee for consideration.