Public Insurance: Public Record?

In general, life insurance policies are not public records. However, there are certain situations where information about insurance policies and claims can become public. For example, in the US, the Office of Insurance Regulation (OIR) makes various records, data, and documents available to the public, including form or rate filings made by insurance companies, personal and commercial residential policy data, and Medicare supplement rates. Additionally, there are specialty consumer reporting agencies that collect information about insurance claims and policies, such as homeowners and auto insurance. These agencies may also collect driving records. While individuals can request free copies of their reports from these agencies, not every agency will have information on everyone. In Florida, any person can make a public records request to the Division of Rehabilitation and Liquidation, which administers insurance companies in receivership. This includes accessing financial reports, court documents, and general claims and policy information.

Life insurance policies are not public records

It is in the best interest of the owners of life insurance policies and their beneficiaries to keep their life insurance information confidential. However, there are some instances where life insurance information could become public. For example, if you have a will and you make the beneficiary of your life insurance the details of your policy will be involved in the probate of your estate, which will put it in the public eye. In a divorce, if the divorce details show up in public records, then details about the life insurance could also be made public. If there are no living beneficiaries, then the death benefit could wind up in probate, thus making it public. If your estate owes large estate taxes, then the information would be going through probate court and would likely be in the public eye.

Instances of ownership include the right for the insured to pay premiums, change beneficiaries, change policy options, and have rights to the cash values of the policy. In most states, creditors of the insured do not have access to the proceeds of the life insurance payable at death, even if the insured owes money. However, if the beneficiary owes money to a creditor, the debts of the deceased can be considered the debts of the beneficiary, and the creditor could potentially attach the life insurance proceeds as soon as the money is received. Most states have a provision that prohibits creditors from attaching life insurance proceeds, but as soon as the proceeds are received, they cease to be life insurance proceeds.

To keep life insurance out of the public view, you can set up a trust. A life insurance trust can be established as an Inter Vivos or living trust, which will cause all of the property that is placed into the trust to pass directly to a beneficiary or beneficiaries without having to go through probate. The privacy of the affairs of the family who established the trust is protected, as all of the property and funds of the family are already in the trust, so there is no transfer of any assets from a physical standpoint. Since nothing needs to be probated, there is no chance for the privacy to be broken.

Insurance companies share customer information

Auto insurance companies also share customer information with other entities, such as law enforcement, in certain situations, especially if it pertains to a legal matter or an investigation related to an accident involving their policyholder. They may also share information with other insurance companies when processing claims or complying with legal requirements. However, they must adhere to privacy regulations, such as the Gramm-Leach-Bliley Act (GLBA) in the United States, to protect sensitive customer information.

In the case of life insurance, policies are generally not part of public records. The proceeds are paid directly to the named beneficiary and do not go through probate, which helps maintain confidentiality. However, there are exceptions where life insurance information may become public, such as when a will is involved, in cases of divorce, or if the beneficiary owes money to creditors.

Specialty consumer reporting agencies collect information on insurance claims made on property and casualty insurance policies, including homeowners and auto policies. These reports are used by insurance companies to determine the types of policies offered and the premiums charged. Individuals can request free copies of their reports from these agencies periodically to review for accuracy and request corrections if needed.

Public records requests in Florida

In Florida, the Office of Insurance Regulation (OIR) makes an effort to make its records, data, reports, and other documents available to the public on its website. This includes information on citizens' take-out company information, federal health care insurance, form (policy) or rate filings made by insurance companies, general insurance company information, malpractice closed claims, Medicare supplement rates, and more.

To request a public record or a legal order issued by the OIR, you can contact the Public Records Office. It is important to note that the OIR does not collect or have access to individual insurance policies issued by companies to individual policyholders. The contact information for the Public Records Office is as follows:

Office of Insurance Regulation

Attn: Public Records Office

200 E Gaines Street

Tallahassee, Florida 32399-4206

850) 413-4223

[email protected]

When making a public records request in Florida, you are not required to provide your name, explain the reason for your request, or submit the request in writing. You can use an electronic form or contact the office by phone or mail. However, it is recommended to provide at least one method of contact. The Governor's Office of Open Government prioritizes specific and narrow requests, especially those that identify custodians, search terms, and date ranges, as they can be fulfilled more efficiently.

The Executive Office of Governor Ron DeSantis also provides contact information for public records requests:

Executive Office of Governor Ron DeSantis

Attn: Office of Open Government

400 S Monroe St. Suite 209

Tallahassee, FL 32399

[email protected]

Additionally, under Florida law, email addresses are considered public records. If you do not want your email address to be released in response to a public records request, it is advised to avoid sending electronic mail and instead contact the office by phone or in writing.

Specialty consumer reporting agencies

SCRAs are distinct from traditional credit reporting agencies, such as Trans Union, Equifax, and Experian, in that they focus on specific areas of a consumer's financial history. Like traditional credit reporting agencies, SCRAs sell consumer reports to creditors, landlords, insurance companies, and employers. For instance, a landlord may purchase a consumer report from an SCRA to review a prospective tenant's rental history, including any evictions. Based on this information, the landlord may decide not to rent to the consumer or may require a higher deposit, particularly if the report contains inaccurate information.

Consumer reports from SCRAs can have a significant impact on individuals' access to credit, housing, employment, and insurance. Therefore, it is crucial for consumers to review their specialty consumer reports regularly and correct any errors. Under the Fair Credit Reporting Act (FCRA), consumers have the right to request one free credit report every twelve months from both Nationwide CRAs and SCRAs.

It is worth noting that not all SCRAs have information on every consumer, and individuals must request reports directly from each company. Additionally, while some SCRAs provide free copies of reports, others may charge a fee.

Keeping life insurance out of the public eye

Life insurance policies are generally not part of any public records. The proceeds are paid directly to a named beneficiary and do not go through probate, which is the legal process of preparing and distributing a deceased individual's assets. Keeping life insurance information confidential is in the best interest of the policyholders and beneficiaries, as making this information public could lead to unwanted attention from fortune-seekers and unscrupulous insurance agents.

However, there are certain situations where life insurance information could become public. These include:

• If you have a will and the beneficiary of your life insurance is mentioned in it, the details of your policy will be involved in the probate process and become public.
• If your divorce records are made public, details about your life insurance may also be disclosed.
• If there are no living beneficiaries, the death benefit could go through probate and become public.
• If your estate owes large estate taxes, the information may be made public through the probate court.
• Life insurance with incidents of ownership, such as the right to pay premiums, change beneficiaries, or access the policy's cash value, may be considered public information.
• If the life insurance proceeds fall into the hands of creditors, this information could become public.

To keep your life insurance out of the public eye, consider the following strategies:

• Use a trust: A life insurance trust can be set up as a living trust, allowing property and funds to pass directly to beneficiaries without probate. This protects the privacy of the family's affairs.
• Properly arrange your life insurance: Avoid situations where information could become public, such as having no living beneficiaries or owing large estate taxes.
• Seek professional help: Consult a knowledgeable life insurance broker and attorney to ensure your life insurance is set up to protect your privacy.

By being proactive and taking the necessary steps, you can help keep your life insurance out of the public eye and protect your confidentiality.

Frequently asked questions