CA SB354

Establishes new privacy standards for insurance licensees and third-party service providers governing the collection, processing, retention, and sharing of consumers' personal information in connection with insurance transactions

Requires licensees to provide clear privacy notices and annual privacy rights notices to consumers, obtain consent before processing personal information for non-insurance purposes (such as marketing or research), and prohibits the sale of consumer personal information

Grants consumers the right to access, correct, amend, or delete their personal information held by insurers, and requires licensees to provide written explanations including specific reasons and supporting information when making adverse underwriting decisions

Authorizes the Insurance Commissioner to investigate violations and impose penalties of at least $5,000 per knowing violation (up to $1,000,000 aggregate), with fines up to $10,000,000 per violation for violating cease and desist orders, plus potential license suspension or revocation

Creates a misdemeanor offense punishable by up to 6 months in jail and/or a $50,000 fine for knowingly and willfully obtaining consumer information from licensees under false pretenses, and prohibits retaliation against consumers who exercise their privacy rights