                                 CODE OF VIRGINIA

INFORMATION SECURITY PROGRAM (§ 38.2-623)

A. Commensurate with the size and complexity of the licensee; the nature and
scope of the licensee&#8217;s activities, including its use of third-party
service providers; and the sensitivity of the nonpublic information used by the
licensee or in the licensee&#8217;s possession, custody, or control, each
licensee shall develop, implement, and maintain a comprehensive written
information security program based on the licensee&#8217;s assessment of the
licensee&#8217;s risk and that contains administrative, technical, and physical
safeguards for the protection of nonpublic information and the licensee&#8217;s
information system.

B. Each licensee&#8217;s information security program shall be designed to:

   1. Protect the security and confidentiality of nonpublic information and the
   security of the information system;

   2. Protect against any reasonably foreseeable threats or hazards to the
   security or integrity of nonpublic information and the information system;

   3. Protect against unauthorized access to or use of nonpublic information, and
   minimize the likelihood of harm to any consumer; and

   4. Define and periodically reevaluate a schedule for retention of nonpublic
   information and a mechanism for its destruction.

C. Each licensee shall:

   1. Designate one or more employees, an affiliate, or an outside vendor
   designated to act on behalf of the licensee who is responsible for the
   information security program;

   2. Design its information security program to mitigate the identified risks,
   commensurate with the size and complexity of the licensee; the nature and
   scope of the licensee&#8217;s activities, including its use of third-party
   service providers; and the sensitivity of the nonpublic information used by
   the licensee or in the licensee&#8217;s possession, custody, or control;

   3. Place access controls on information systems, including controls to
   authenticate and permit access only to authorized persons to protect against
   the unauthorized acquisition of nonpublic information;

   4. At physical locations containing nonpublic information, restrict access to
   nonpublic information to authorized persons only;

   5. Implement measures to protect against destruction, loss, or damage of
   nonpublic information due to environmental hazards, such as fire and water
   damage or other catastrophes or technological failures;

   6. Develop, implement, and maintain procedures for the secure disposal of
   nonpublic information in any format;

   7. Stay informed regarding emerging threats or vulnerabilities and utilize
   reasonable security measures when sharing information relative to the
   character of the sharing and the type of information shared; and

   8. Provide its personnel with cybersecurity awareness training.

D. 1. If a licensee has a board of directors, the board or an appropriate
committee of the board shall, at a minimum, require the licensee&#8217;s
information executive management or its delegates to (i) develop, implement, and
maintain the licensee&#8217;s information security program and (ii) report in
writing (a) the overall status of the information security program and the
licensee&#8217;s compliance with this article and (b) material matters related
to the information security program, addressing issues such as risk assessment,
risk management and control decisions, third-party service provider
arrangements, results of testing, cybersecurity events or violations and
management&#8217;s responses thereto, and recommendations for changes in the
information security program.

   2. If executive management delegates any of its responsibilities under this
   section, it shall oversee the development, implementation, and maintenance of
   the licensee&#8217;s information security program prepared by the delegate and
   shall receive a report from the delegate complying with the requirements of
   subdivision 1.

E. Beginning July 1, 2022, if a licensee utilizes a third-party service
provider, the licensee shall:

   1. Exercise due diligence in selecting its third-party service provider; and

   2. Require a third-party service provider to implement appropriate
   administrative, technical, and physical measures to protect and secure the
   information systems and nonpublic information that are accessible to, or held
   by, the third-party service provider.

F. Each licensee shall monitor, evaluate, and adjust, as appropriate, the
information security program consistent with any relevant changes in technology,
the sensitivity of its nonpublic information, internal or external threats to
information, and the licensee&#8217;s own changing business arrangements, such
as mergers and acquisitions, alliances and joint ventures, outsourcing
arrangements, and changes to information systems.

G. As part of its information security program, each licensee shall establish a
written incident response plan designed to promptly respond to, and recover
from, any cybersecurity event that compromises the confidentiality, integrity,
or availability of nonpublic information in its possession; the licensee&#8217;s
information systems; or the continuing functionality of any aspect of the
licensee&#8217;s business or operations. Such incident response plan shall
address:

   1. The internal process for responding to a cybersecurity event;

   2. The goals of the incident response plan;

   3. The definition of clear roles, responsibilities, and levels of
   decision-making authority;

   4. External and internal communications and information sharing;

   5. Identification of requirements for the remediation of any identified
   weaknesses in information systems and associated controls;

   6. Documentation and reporting regarding cybersecurity events and related
   incident response activities; and

   7. The evaluation and revision, as necessary, of the incident response plan
   following a cybersecurity event.

H. Beginning in 2023 and annually thereafter, each insurer domiciled in the
Commonwealth shall, by February 15, submit to the Commissioner a written
statement certifying that the insurer is in compliance with the requirements set
forth in this section, any rules adopted pursuant to this article, and any
requirements prescribed by the Commission. Each insurer shall maintain for
examination by the Bureau all records, schedules, and data supporting this
certificate for a period of five years. To the extent an insurer has identified
areas, systems, or processes that require material improvement, updating, or
redesign, the insurer shall document the identification and the remedial efforts
planned and underway to address such areas, systems, or processes. Such
documentation must be available for inspection by the Commissioner.

HISTORY: 2020, c. 264.