Re: [Fwd: Privacy and Mandatory Auto Insurance]

[Peter Marshall <techdiff@ix.netcom.com>]

Barbara--

Thanks for the response.

Seems you raise some significant questions here, OTOH, they might be better
addressed to your state legislators, and made clearer while you're at it.

How about reviewing PA's insurance laws?

BTW, I used to live in PA when their Ins. Comm. was really good and kicked
Equifax's butt re: a "background report" for new auto coverage. Seems I
also was covered by Erie at one time.

Peter Marshall



At 07:24 AM -0800 03/12/99, Dynalysis of Princeton wrote:
>Dear Peter:
>
>Below is my first letter to Specter to which he responded. Yesterday I
>wrote to him again and sent him my address.  Perhaps he will be able to
>help me.  I asked that he look at the auto insurance question with the
>medical privacy issue in mind. I expanded my concerns mentioning the
>past experience with a medical records release but focused on the
>control of information once it was obtained by the auto insurance
>industry.  Hopefully he will give this some thought if the email gets to
>him.
>
>Regards,
>Barbara
>
>Received: from dynalysis.com (ftp.dynalysis.com [198.139.141.131])
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>Message-ID: <36E4FF21.F66F57D5@dynalysis.com>
>Date: Tue, 09 Mar 1999 10:59:45 +0000
>From: Dynalysis of Princeton <mail@dynalysis.com>
>Organization: Dynalysis of Princeton
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>To: senator_specter@specter.senate.gov
>Subject: Privacy and Mandatory Auto Insurance
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>
>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