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FTC "Red Flag Rules" Effective December 31, 2010

During the 2010 Congressional lame duck session, President Obama signed a bill authorizing implementation of the Federal Trade Commission (FTC) “Red Flag Rules,” including a clarification specific to doctors and attorneys...
June 20, 2013

During the 2010 Congressional lame duck session, President Obama signed a bill authorizing implementation of the Federal Trade Commission (FTC) “Red Flag Rules,” including a clarification specific to doctors and attorneys. The rules went into effect December 31, 2010.

FTC will work with agents that are in the process of complying with these regulations within 30-days of the effective date.

PIA continues to strongly encourage members to review PIA’s August 2009 Practice Guidance Bulletin, which is still applicable. PIA members should also review PIA Privacy Compliance Outline and FTC Guide for Small Businesses. PIA National encourages members to be knowledgeable in the practice of insurance privacy and security law, regulations and rules in your state and those in which you practice the business of insurance.

The Key to Remember: The business and practice of insurance are not regulated by the FTC. However, insurance law (common and statutory/regulatory) already has these consumer protections as long-standing practice. These set of obligations define and limit our provided legal exemptions and require insurance persons to request, collect, use, retain and maintain only the information that is required to perform the insurance services requested, expected and required; to provide protection for data; to only share data that is required to perform duties with parties specific individuals needed.

For more information, contact Pat Borowski at patbo@pianet.org and (703) 518-1360.

The following resources may be accessed by current PIA members.A password is required. If you do not know your password, please follow the instructions on the login page that appears when you click on one of the links below.

PIA Update on FTC Red Flag Rules (PDF file, Updated August 10, 2009; Originally published May 2009)

See also:FTC Moves “Red Flag” Deadline to June 2010

Related Resource: Privacy Compliance Tools Kit for the Independent Insurance Agency

Market Activities Bulletin - "Certificates of Insurance" (PDF file, July 2009)

Workers Compensation - Independent Contractors vs. Employee Status, NCOIL, NCCI/Statistical Bureaus

Insurance Premium Accounts: FDIC and SIPC Coverage (PDF file)

Financial Rating Agencies, U.S. Insurance Markets and PIA Members (PDF file)

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Disclaimer:Please keep in mind that the operations, procedures and policies of each PIA member agency will differ. PIA National’s makes this information available to you, as a valued PIA member, for general reference and informational purposes only. The material provided does not constitute legal advice and is in no way intended nor does it serve as a substitute for your informed consultation with qualified legal counsel and appropriate professional experts.

It is and will remain your ongoing obligation, in consultation with qualified professionals where necessary, to thoroughly review, assess and consider the varied issues, laws, regulations, rules, contracts, practices and procedures that affect your agency, its insurance partners, agency customers and the insurance marketplace.  By engaging in this regular review, assessment and consultation with your chosen agency professionals and experts, it is you who will determine the specific actions, practices, procedures and instructions that you will need to develop and implement for your agency operations and compliance with applicable insurance laws, regulations and practices.

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