Health · Chapter 19 · Underwriting Laws
Information and Privacy Protection Act
Definition
Based on the NAIC insurance information & privacy model act (adopted in many states): insurers must comply with laws governing the dissemination of private information about an applicant or insured — and may not base decisions SOLELY on previous adverse underwriting decisions from support organizations such as the MIB and medical reports.
In plain English
A past decline can prompt a closer look — it can never be the whole reason for a new decline.
Exam tip
⚠️ Pairs with the MIB rule: the MIB report may trigger further investigation, but an insurer may NOT decline an applicant solely because of MIB (or other prior adverse-decision) data.
Related terms