Privacy Law situation

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darnovak
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Joined: Fri Jul 15, 2005 10:51 am
Location: Alyamont NY USA

Privacy Law situation

Post by darnovak »

Personal auto policy written for our insured. The carrier requires driver info for all drivers in the household. Father (our insured) gives us son's SSAN, DOB, Operator ID, carrier and policy number - son is age 24, has his own auto insurance, and lives in our insured's household. Carrier advises they will not rate the son on the policy but will underwrite the son. Our policy is issued and carrier now issues a legal cancellation because son has DWI on his extract rendering our insured ineligible with this carrier. We did not run anything on the son as he was not listed as an operator on the quote or the policy. Carrier provides us with a copy of the DMV extract showing the DWI. Insured receives cancellation notice and asks us what is the specific reason. Do we disclose the information on the son's extract to the father (our insured) without the son's pemission? Is the son's DMV extract and DWI conviction public information or non-public personal information? Carrier advises they made their underwriting decision, the notice is legal, and they don't care to answer our question and advise us re: privacy law in this situation. IN A NUTSHELL: If an insured gives us information about individuals and/or we submit to carriers and then receive additional personal information about these individuals, can we pass this additional information to our insured without violating the privacy laws (regarding those other individuals?)
simiinsuranceguy
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Re: Privacy Law situation

Post by simiinsuranceguy »

"They will not rate the son but will underwrite him." Interesting. If dad's carrier issues an endorsement excluding the son from coverage under the dad's policy, I really do not see what the issue is. The carrier has no exposure for the son driving his car or the son driving the dad's car, either way, he is excluded from coverage.
Regarding your real question, I would be reluctant to disclose the son's information to the dad. I would just tell him that his son's driving record does not qualify for that carrier's guidelines and leave it up to the dad to talk to his son to discuss his record. If the son decides to share with dad, great.
mccluney
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Re: Privacy Law situation

Post by mccluney »

Sim's response as to what to tell the Dad is "right on". Many carriers will not issue a driver exclusion endorsement. These types of situations are difficult for the agent and the insured. The company's don't like the potential exposure. If I were the agent and I write the coverage with another carrier with the driver exclusion, I would send out annual letters to the client as
a reminder that the exclusion exists.
SFOInsuranceLady
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Re: Privacy Law situation

Post by SFOInsuranceLady »

It sounds like the carrier does not have a named driver exclusion form that can be endorsed onto this policy, therefore, forcing them to underwrite the son on the dad's policy because of the sheer possibility that the son may have access to dad's car since he is living under his roof. I agree with the carrier's decision - regarding disclosure, I agree with Simi. DO NOT DISCLOSE SPECIFIC INFORMATION but confirm that the son does not meet elegibility guidelines. If the father cannot or won't talk to the son, I would "pass the buck" and tell the dad to write (the old fashioned way, in a letter via USPS) to the insurance carrier for an explanation on their decision....I love passing the buck, especially when it comes to privacy issues!!
kevinraz
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Location: Iowa

Re: Privacy Law situation

Post by kevinraz »

Former underwriter here: Named Driver Exclusions are not used by many companies because they don't work. Some states don't allow them and when the going gets tough (big claim, injured kids, etc) the courts find a way around them to get to the money. Even when they do work the carrier still has to spend money defending their form.

It's best, from an insurance and personal financial standpoint, to have all family members in the same house insured with the same carrier and on the same policy. Just keep that as your guide in these situations and life will be much more simple.

As for the 24 year old with the DUI living at home...sounds like he is a real winner & will probably still be living there when he is 30.
Kevin Rasmussen AU, CIC
darnovak
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Location: Alyamont NY USA

Drivers Privacy Protection Act

Post by darnovak »

The NY Big I to the rescue (IIABNY): [summarized] As per the federal Drivers Privacy Protection Act, driving infractions stated on an MVR are not protected information. Personal information that must be protected includes; photograph, SSAN, driver identification number, name, address, (but not the 5 digit ZIP code), telephone number, medical information, and disability information.
Protected Personal information does not include information about traffic accidents, traffic violations, or the status of a driver license.
regards, Dar Novak
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