Letter to Agent - privacy issue Return to  bulleted List

TO:        AGENTS AND OTHER BUSINESS ASSOCIATES\

DATE:         05/10/01

RE:              Regulation #169 Compliance with Privacy Act

 Regulation #169, (11 NYCRR 420) entitled “Privacy of Consumer Financial and Health Information” was promulgated by the Insurance Department with a required compliance date of 07/01/01.  The purpose of the Regulation requires Insurance Department licensees (Fulmont) to submit a written report to the Department pursuant to Section 308 of the Insurance Law by 05/01/01 outlining the policies, procedures and controls that we will have in place as of 04/15/01 with respect to consumer financial information protection and privacy laws.

The General Provisions of the Gramm-Leach-Bliley Act (GLBA) requires financial institutions, including insurers, to protect the privacy of consumers and customers.  Title V of GLBA requires that state insurance authorities establish appropriate consumer privacy standards for insurance providers. 

It further lists specific protections that regulators shall implement.  These include requirements that financial institutions maintain a privacy policy that is clearly communicated to consumers and customers, that no non-public personal financial information be disclosed to non-affiliated third parties unless a consumer has been given a chance to ‘opt out’ of having his or her information disclosed, and that no specific account information be given to direct marketing firms.  The Act also provides numerous exceptions to specific consumer protections.

The Insurance Department wants to be sure that insurance companies are not taking information received on applications or other forms and sharing it for marketing purposes to outside businesses without the policyholder’s written permission.  Fulmont does not share information for marketing purposes with any non-affiliated third party.  

Please see the attached privacy notice that will be sent to all personal lines customers by 07/01/01.  This notice states the type of nonpublic personal financial information we receive from our policyholders, who we may share this information with, and an opt-out request if a policyholder does not want us to share with non-affiliated third parties (except as permitted by law). 

Our Privacy Plan will include the following: 

•        We are notifying all affiliated and non-affiliated third parties of our privacy notice policy.  Please respond by 06/01/01 if you will not be adhering to our privacy plan, and please submit a copy of your privacy notice.

•        We will send the initial notice by 07/01/01 to all individuals who obtain, seek to obtain or are claimants or beneficiaries of products or services primarily for personal, family or household purposes.

•        We will send the privacy notice to all new policyholders insured primarily for personal, family or household purposes.

•        We will send the privacy notice to all applicable policyholders on a yearly basis, beginning with renewal policies and anniversary billings as of 07/01/01.

•        We have developed an Opt-Out Notice for use on our website.

•        We have devoted a telephone extension, #116 with a voice mail message for policyholders who choose to call us with their opt-out notice.

If you require further assistance in developing a privacy notice for your own use, please contact us.  If you would like to research this Regulation further, you may visit the New York State Insurance Department’s website at www.ins.state.ny.us and select Statutes, Regulations, Opinions, Circulars.