https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ANonpublic_information 2026-05-02T14:59:57Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Nonpublic_information&diff=11479&oldid=prev 2026-03-12T00:09:33Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>📋 &#039;&#039;&#039;Nonpublic information&#039;&#039;&#039; in the insurance context encompasses any personally identifiable financial or health-related data about a [[Definition:Policyholder | policyholder]] or [[Definition:Applicant | applicant]] that is not lawfully available to the general public. The term carries specific regulatory weight under frameworks like the [[Definition:Gramm-Leach-Bliley Act (GLBA) | Gramm-Leach-Bliley Act (GLBA)]] and the [[Definition:National Association of Insurance Commissioners (NAIC) | NAIC&#039;s]] [[Definition:Insurance Data Security Model Law | Insurance Data Security Model Law]], which impose strict obligations on [[Definition:Insurer | insurers]], [[Definition:Agent | agents]], and other [[Definition:Licensee | licensees]] regarding how such data is collected, stored, shared, and protected.<br /> <br /> 🔐 Carriers handle vast quantities of nonpublic information — from [[Definition:Medical records | medical records]] submitted during [[Definition:Underwriting | underwriting]] to bank account details used for [[Definition:Premium | premium]] collection and [[Definition:Claims | claims]] payments. Under GLBA and state-adopted model laws, every insurer must implement a written [[Definition:Information security program | information security program]] proportionate to the size and complexity of its operations. This includes conducting regular [[Definition:Risk assessment | risk assessments]], encrypting sensitive data, managing [[Definition:Third-party vendor | third-party vendor]] access, and notifying regulators and affected individuals promptly after a [[Definition:Data breach | data breach]]. Many states have adopted versions of the NAIC model law, meaning compliance requirements can vary by jurisdiction, adding operational complexity for multi-state carriers and [[Definition:Managing general agent (MGA) | MGAs]].<br /> <br /> ⚠️ The stakes of mishandling nonpublic information extend well beyond regulatory fines. A significant breach can trigger [[Definition:Class action | class action]] litigation, erode consumer trust, and invite heightened scrutiny from [[Definition:State insurance department | state insurance departments]] during future examinations. For [[Definition:Insurtech | insurtech]] companies that rely heavily on data-driven [[Definition:Underwriting | underwriting]] models and [[Definition:Application programming interface (API) | API]]-based integrations, safeguarding nonpublic information is both a legal necessity and a competitive differentiator. Demonstrating robust data governance helps newer market entrants earn the confidence of carrier partners, [[Definition:Reinsurer | reinsurers]], and distribution partners who must ensure that every link in the data chain meets regulatory expectations.<br /> <br /> &#039;&#039;&#039;Related concepts:&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Gramm-Leach-Bliley Act (GLBA)]]<br /> * [[Definition:Insurance Data Security Model Law]]<br /> * [[Definition:Data breach]]<br /> * [[Definition:Privacy policy]]<br /> * [[Definition:Information security program]]<br /> * [[Definition:Personally identifiable information (PII)]]<br /> {{Div col end}}</div>

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