NAIC Insurance Information and Privacy Protection Model Act

What this document is

NAIC Insurance Information and Privacy Protection Model Act is a naic model law published by National Association of Insurance Commissioners (NAIC). It is one of the documents that insurance license exam questions are written from, including life & health, personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 10A

  “A. In the event of an adverse underwriting decision the insurance institution or agent responsible for the decision shall: (1) Either provide the applicant, policyholder or individual proposed for coverage with the specific reason or reasons for the adverse underwriting decision in writing or...”

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 11 (Information Concerning Previous Adverse Underwriting Decisions)

  “No insurance institution, agent or insurance support organization may seek information in connection with an insurance transaction concerning: A. Any previous adverse underwriting decision experienced by an individual; or B. Any previous insurance coverage obtained by an individual through a...”

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 12 (Previous Adverse Underwriting Decisions)

  “No insurance institution or agent may base an adverse underwriting decision in whole or in part: A. On the fact of a previous adverse underwriting decision or on the fact that an individual previously obtained insurance coverage through a residual market mechanism; provided, however, an insurance...”

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 2A(1), definition of "Adverse underwriting decision", clauses (a) through (c)

  “A. “Adverse underwriting decision” means: (1) Any of the following actions with respect to insurance transactions involving insurance coverage which is individually underwritten: (a) A declination of insurance coverage; (b) A termination of insurance coverage; (c) Failure of an agent to apply for...”

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 2A(2)

  “(2) Notwithstanding Paragragh (1) above, the following actions shall not be considered adverse underwriting decisions but the insurance institution or agent responsible for their occurrence shall nevertheless provide the applicant or policyholder with the specific reason or reasons for their...”

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 2O, definition of "Investigative consumer report"

  “"Investigative consumer report" means a consumer report or portion thereof in which information about a natural person's character, general reputation, personal characteristics or mode of living is obtained through personal interviews with the person's neighbors, friends, associates, acquaintances...”

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 3 (Pretext Interviews)

  “No insurance institution, agent or insurance support organization shall use or authorize the use of pretext interviews to obtain information in connection with an insurance transaction; provided, however, a pretext interview may be undertaken to obtain information from a person or institution that...”

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 4A(1)

  “A. An insurance institution or agent shall provide a notice of information practices to all applicants or policyholders in connection with insurance transactions as provided below: (1) In the case of an application for insurance, a notice shall be provided no later than: (a) At the time of the...”

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 4A(2)

  “(2) In the case of a policy renewal, a notice shall be provided no later than the policy renewal date, except that no notice shall be required in connection with a policy renewal if: (a) Personal information is collected only from the policyholder or from public records; or (b) A notice meeting the...”

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 4C

  “C. In lieu of the notice prescribed in Subsection B, the insurance institution or agent may provide an abbreviated notice informing the applicant or policyholder that: (1) Personal information may be collected from persons other than the individual or individuals proposed for coverage; (2) Such...”

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 6, chapeau through Subsection G(1)

  “Notwithstanding any other provision of law of this state, no insurance institution, agent or insurance support organization may utilize as its disclosure authorization form in connection with insurance transactions a form or statement which authorizes the disclosure of personal or privileged...”

• NAIC Insurance Information and Privacy Protection Model Act (Model #670), Section 7A

  “A. No insurance institution, agent or insurance support organization may prepare or request an investigative consumer report about an individual in connection with an insurance transaction involving an application for insurance, a policy renewal, a policy reinstatement or a change in insurance...”

Practice this material

Questions about this source

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