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| *Business questions>>>Insurance Questions |
I need to tap the wisdom of an insurance expert...? |
Question: Hello, I had a homeowners loss and have, over the months replaced quite a few items.. On one item, a large stereo, I got it, then sent in the receipt to be compensated by my insurance company, and then for a variety of reasons (mostly being dissatisfied with the unit I purchased,) I've had to return it and get another unit, (of basically the same or more value.) Today I discovered that my insurance adjustor had telephoned the stereo store, (as I was there buying a replacement for the one I'd returned,) and asked if I'd returned the unit I'd submitted for reimbursement.. The store gave them all of my information, telling them that I'd returned it. I was furious, beliving that it was not the place of the employee to tell anyone (I'd paid with a Visa Card,) anything about my purchases or returns.. I felt violated, as I purchased my replacement stereo center. Was a law violated by this employee? Is it legal for my insurance company to snoop like this ? And what recourse do I have ? Answer: While it's true insurance companies have the right to investigate suspected fraud, they do not have the right to violate your financial privacy UNLESS there is strong reason to suspect you; they must also comply with state insurance fraud investigation laws and any applicable federal laws. The one that comes to mind here is the Graham-Leach-Bliley Act. Under the GLB Act, insurance companies and their employees (such as an "inside" adjuster) are considered "financial institutions," and therefore they are subject to the privacy provisions therein; an outside insurance adjuster is probably considered a "business affiliate" of the insurer, which would mean the adjuster is also subject to the GLB Act's requirements. (I've never had to research the topic of outside adjusters being subject to the GLB Act, so I cannot definitively address this point.) The store, however, is not a "financial institution" under the GLB Act, but it's probably required under state law to maintain privacy for its customers. My advice for you is: 1) Provide a copy of your exchange receipt to your insurer so you are no longer considered a suspect; 2) Contact your state's insurance commissioner's office and speak with an investigator in the fraud division. Ask what state laws were applicable in this situation. You may be asked to file a formal complaint against the insurer or adjuster. 3) Contact your state's consumer protection division and ask whether the store violated any laws pertaining to the trasaction of business. 4) Consider filing a complaint with the FTC, which enforces the GLB Act. You can do so by going here: https://rn.ftc.gov/pls/dod/wsolcq$.start... For more information about the GLB Act, go here; http://www.ftc.gov/privacy/privacyinitia... I hope this helps. |
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