South Carolina First State to Adopt NAIC Insurance Data Security Model Law

On May 3, Governor Henry McMaster signed the South Carolina Insurance Data Security Act, making South Carolina the first state to adopt the NAIC Insurance Data Security Model Law.

South Carolina's law, which takes effect January 1, 2019, is substantially similar to the NAIC Model, which incorporated many of the requirements of the New York Department of Financial Services Cybersecurity Requirements for Financial Services Companies Regulation. Licensees will have until July 1, 2019 to, among other things, implement an information security program and establish an incident response plan. By July 1, 2020, licensees will be expected to have a third-party service provider management system in place.