The Alabama Department of Insurance has scheduled regulation hearings for May 6 and May 21, 2003. The May 6 hearing will address the adoption of regulations concerning customer privacy and use of credit information. Proposed regulations to be discussed May 21 include those that address marketing practices and claims policies.
Both hearings will take place at department offices in Montgomery, Ala. and will begin at 10:00 a.m.
The May 6 hearing will address the following proposals:
· Adoption of proposed new Regulation No. 126 (Chapter 482-1-126), to be known as the Standards for Safeguarding Customer Information Regulation. The purpose of the proposed new regulation is to set forth standards insurers should follow to safeguard customer information in compliance with the Gramm-Leach-Bliley Act. This proposed regulation is based upon the model regulation developed by the National Association of Insurance Commissioners. (9 pages)
· Adoption of proposed new Regulation No. 127 (Chapter 482-1-127), to be known as the Use of Credit Information For Determining Rates and Eligibility For Personal Insurance. The purpose of the proposed new regulation is to set forth restrictions and procedural requirements for personal lines insurers licensed in Alabama regarding the use of applicants’ credit history for calculating rates and determining eligibility for coverage or tier placement. (10 pages)
Proposed regulations to be addressed May 21 include:
· Revision of Regulation No. 77 [Chapter 482-1-077], which defines the use of clearing corporations and Federal Reserve Book-Entry Systems by domestic insurance companies and sets out requirements of custody agreements. (22 pages)
· Revision of Regulation No. 88 [Chapter 482-1-088], which clarifies questions on marketing practices that offer some form of free gifts, benefits, etc., and the amount of the free gifts, benefits, etc. (4 pages)
· Adoption of proposed new Regulation No. 124 [Chapter 482-1-124], to be known as Standards for Life, Accident and Health Insurance Claims Regulation. It sets forth minimum standards for the investigation and disposition of life, accident and health claims arising from policies issued in this state. (14 pages)
· Adoption of proposed new Regulation No. 125 [Chapter 482-1-125], to be know as Standards for Property/Casualty Insurance Claims Regulation. It sets forth minimum standards for the investigation and disposition of property and casualty claims arising from policies issued in this state. (20 pages)
Any person wishing to submit testimony at said hearing is requested to submit said testimony in writing to the Alabama Department of Insurance, Attention: Legal Division, Post Office Box 303351, Montgomery, Ala. 36130-3351. Any written submission of testimony prior to the hearing will not preclude anyone from making an oral or written presentation at the hearing.
A copy of the regulations may be obtained by written request to the Alabama Department of Insurance, Post Office Box 303351, Montgomery, Ala. 36130-3351. The request must include payment of one dollar per page and a self-addressed, postage paid return envelope. An unofficial copy may also be obtained at no charge via electronic mail. You may send an e-mail request to DSmith@insurance.state.al.us