2006 Minnesota Statutes

72A.502 DISCLOSURE OF INFORMATION; LIMITATIONS AND CONDITIONS.
    Subdivision 1. Requirement. An insurer, insurance agent, or insurance-support organization
must not disclose any personal or privileged information about a person collected or received in
connection with an insurance transaction without the written authorization of that person except
as authorized by this section. An insurer, insurance agent, or insurance-support organization must
not collect personal information about a policyholder or an applicant not relating to a claim from
sources other than public records without a written authorization from the person.
    Subd. 2. Prevention of fraud. Personal or privileged information may be disclosed without
a written authorization to another person if the information is limited to that which is reasonably
necessary to detect or prevent criminal activity, fraud, material misrepresentation, or material
nondisclosure in connection with an insurance transaction, and that person agrees not to disclose
the information further without the individual written authorization unless the further disclosure is
otherwise permitted by this section if made by an insurer, insurance agent, or insurance-support
organization.
    Subd. 3. Health care institutions and professionals. Personal or privileged information
may be disclosed without a written authorization to a health care institution or health professional
for the purpose of verifying insurance coverage benefits, informing a person of a health problem
of which the person must not be aware, or conducting an operations or services audit, if the
information is only disclosed that is reasonably necessary to accomplish the purposes under
this subdivision.
    Subd. 4. Regulatory authority. Personal or privileged information may be disclosed without
a written authorization to an insurance regulatory authority.
    Subd. 5. Other governmental authorities. Personal or privileged information may be
disclosed without a written authorization to a law enforcement or other governmental authority if:
(1) the disclosure is to protect the interests of the insurer, agent, or insurance-support
organization in preventing or prosecuting the perpetration of fraud upon it; or
(2) the insurer, agent, or insurance-support organization reasonably believes that illegal
activities have been conducted by the individual.
    Subd. 6. Other laws or order. Personal or privileged information may be disclosed without
a written authorization if permitted or required by another law or in response to a facially valid
administrative or judicial order, including a search warrant or subpoena.
    Subd. 7. Actuarial and research studies. Personal or privileged information may be
disclosed without a written authorization to conduct actuarial or research studies if:
(1) no individual may be identified in the actuarial or research report;
(2) materials allowing an individual to be identified are returned or destroyed as soon as they
are no longer needed; and
(3) the actuarial or research organization agrees not to disclose the information unless the
disclosure would otherwise be permitted by this section if made by an insurance company, agent,
or insurance-support organization.
    Subd. 8. Affiliate companies. Personal or privileged information may be disclosed without a
written authorization to an affiliate whose only use of the information will be in connection with
an audit of the insurer or agent or the marketing of an insurance product or service, provided the
affiliate agrees to not disclose the information for any other purpose or to unaffiliated persons.
    Subd. 9. Group policyholder. Personal or privileged information may be disclosed without
written authorization to a group policyholder only to report claims experience or conduct an
audit of the insurer's or agent's operations or services, if the information disclosed is reasonably
necessary for the group policyholder to conduct the review or audit.
    Subd. 10. Governmental licensing board. Personal or privileged information may be
disclosed without a written authorization to a governmental professional licensing or regulatory
board to review the service or conduct of a health care institution or health professional that the
insurer has reason to believe has violated its licensing act or engaged in the unlawful practice
of a licensed professional.
    Subd. 11. Professional peer review. Subject to the terms of a contract between an insurer
and a health professional or health care institution, personal or privileged information may be
disclosed without a written authorization to a professional peer review organization to review the
service or conduct of a health care institution or health professional.
    Subd. 11a. Merger or sale. Personal or privileged information may be disclosed to a party or
representative of a party to a proposed or consummated sale, transfer, merger, or consolidation
of all or part of the business of the insurer, agent, or insurance-support organization, without a
written authorization provided:
(1) prior to the consummation of the sale, transfer, merger, or consolidation, only such
information is disclosed as is reasonably necessary to enable the recipient to make business
decisions about the merger, transfer, purchase, or consolidation; and
(2) the recipient agrees not to disclose the information unless the disclosure would otherwise
be permitted by this section if made by an insurer, agent, or insurance-support organization.
    Subd. 12. Notice. Whenever an insurer, insurance agent, or insurance-support organization
discloses personal or privileged information about a person that requires the written authorization
of that person under this section, the insurer, insurance agent, or insurance-support organization
shall notify that person in writing within ten days of the date the information was disclosed.
The notification must specify the identity of the person to whom information was disclosed
and the nature and substance of the information that was disclosed. A notice is not required to
be given under this subdivision if an insurer is disclosing personal information for underwriting
purposes to another insurer, or to an insurance-support organization if the person had signed
an authorization authorizing the disclosure.
History: 1989 c 316 s 14; 1990 c 467 s 3,4