WiFi networks, routers, and servers - on site.Flash drives and external hard drives that might be used as backup or extra storage.Faxes that store copies of the above documents.Physical or scanned copies of life insurance applications.Okay, so now we know what why we have to protect our clients' data - but what does that actually mean? Data encompasses all of the following: So even if certain information falls outside of the scope of HIPAA, we're still liable for its ultimate security thanks to the FMA. It requires us to limit access to sensitive information to minimize security breaches, and use secure passwords to protect stored data. This law requires us to ensure our clients' records and personal information is secure and confidential. Information not covered by HIPAA is covered by the the Financial Modernization Act (FMA), which applies to insurance companies, brokerage firms, and many other financial service providers. It does NOT apply to information that exclusively deals with life insurance, critical illness insurance, and disability insurance. But as the law is written, it only pertains to medical, dental, and vision records. It was created to protect health-related information, which we naturally come into contact with while writing life insurance.
What you might not know is that HIPAA has limits. This refers to any individually identifiable health information as well as any personally identifiable information, such as a social security number. You're probably already familiar with HIPAA, which covers protected health information (PHI). Two federal laws require us to protect client data: HIPAA and the FMA.
Why 71% of organizations were affected by a successful cyber attack in 2014. But we're going to help you tackle it head-on so you can tell your clients, with confidence, that you have a security plan in place to protect their data. Security is a complicated subject and one that's easy to put off. Isn't this worth taking a few minutes to deal with now instead of having to make an uncomfortable phone call later? We don't want to be the weakest link. After all, if something happens and client data is compromised, we lose our clients' trust. But as the saying goes, a chain is only as strong as its weakest link. We're not the only ones handling that data, though - carriers and medical examiners will also have a hand in the process. As financial advisors, we're responsible for keeping our clients' data safe.