Dear Senator Spector:
I recently wanted to change to Erie Auto Insurance company for an auto
insurance policy. The forms I was given by a new broker included a
boiler plate document that essential would be an agreement to allow Erie
to extensively underwrite me for car insurance. I objected to this
extensive type of underwriting and was told I could not apply for auto
insurance with Erie if I did not sign that document. I had not heard of
this before and asked the PA Department of Insurance. They were unable
to give me the Code which allowed Erie to undertake this requirement and
I was told that there were no restrictions on information that the auto
insurance industry could collect and no regulations as to what they
could do with the information. I find this situation very disturbing.
In the meantime, I tried to leave the Allstate Indemnity insurance via
my Allstate agent and he said if I do that, they will have to underwrite
me to determine my premium. This is a company that I have been paying
for 25 years and that has all of my records! Evidently the only way
that I can keep my privacy is to continue to pay a high premium.
Could you please tell me if there are any regulations to protect
information once it is given to any insurance company. Just as
important, if I have to have car insurance and this industry is going to
leave the traditional review practices to arrive at premiums, who is
regulating the new practices and on what basis? I do not want what my
neighbor thinks, my landlord, or my employer, to dictate my ability to
get auto insurance and at what cost.
I hope you have some suggestions as to what I can do about this. I am
really sorry you are planning to retire and hope you will reconsider.
Sincerely yours,
Barbara Brandt
I do not wish the auto industry to
ave to sign a document that allowed them to extend their underwriting
beyond credit reporting to mirror that one would expect for life
insurance applications. One needs to also consider that the Medical
Information Bureau falls within the scope of credit reporting laws and
also may be accessed..
I find it troubling that in PA I must provide all this information
before I am allowed to apply for life insurance and before there is any
reason given for the need to have this information. For instance, in
terms of mandatory insurance, it seems to me that the insurance industry
already has sufficient access to my driving record, auto insurance
history and criminal background via the State of PA. I don't understand
why I must give up my privacy to get mandatory auto insurance. What
standards am I going to be measured against? What would preclude me
from having auto insurance mandated by PA if I have a good driving
record and have a job. What are the standards that these companies are
held to by the State and will these companies hold me to as a consumer?
How will I know they will protect the information I must give them