The growing privacy debate in Congress and in state legislatures around the country has included important questions about how insurance companies use and share nonpublic personal information.
Information is the lifeblood of the insurance business.
Without nonpublic personal information, a company's ability to provide these important services would be seriously diminished. This review focuses on information needs and practices associated with private passenger automobile, homeowners, and workers' compensation insurance. For each type of insurance, the role of personal information in the underwriting and pricing of insurance is examined. Special emphasis is directed at the role of nonpublic personal information in the management and settlement of insurance claims. Underwriting Underwriting is the process whereby an insurance company reviews an application for insurance, decides whether to offer coverage, establishes the terms and conditions of coverage, and determines the appropriate premium.