Nov 082010
 
 November 8, 2010  Business, Laws

In what’s being called “a major victory for insurance agents and brokers,” the California Office of Administrative Law has approved Department of Insurance plans to repeal certain portions of its privacy regulations.

The CDI filed with OAL on Sept. 22, 2010, a “change without regulatory effect,” arising out of the enactment of the California Financial Information Privacy Act, a comprehensive statewide privacy law that superceded earlier provisions in CDI regulations.

On Nov. 4,2010, OAL filed notice with the California Secretary of State of its approval of the CDI action. The amendments take effect immediately.

As a result of the most recent OAL regulatory action, California Code of Regulations Section 2689.8(c)(3) is repealed. That provision required agents and brokers to annually mail privacy policies to all customers, and to provide an “opt out” form that, if returned by the customer, prevented broker-agents from shopping on renewal to find better policies from other insurance companies, explained Insurance Brokers an Agents of the West, which requested the change.

Read more on  http://www.insurancejournal.com/news/west/2010/11/08/114689.htm”>Insurance Journal

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