Does the financial privacy regulation apply to insurance brokers?
Yes. Insurance brokers are subject to the financial privacy regulation because they are licensees of the Department and they are not specifically excluded from the requirements of the regulation. Also, it is important to note that a broker generally may not qualify for the “agent exception” in the regulation’s definition of licensee. In order to qualify for the agent exception, the licensee must be acting on behalf of another principal licensee that is complying with the regulation. Because brokers, by their very nature, represent the insured in a transaction and do not represent the insurance company, they generally do not qualify for the agent exception. Therefore, brokers in that situation would have to fully comply with the financial privacy regulation on their own.
Related Questions
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