The Office of General Counsel issued the following opinion on May 4, 2001 representing the position of the New York State Insurance Department.
Re: Regulation 169: Company in Run-off Status
Is an insurer, which is voluntarily running off its business in New York and does not intend to share its policyholder information, required to issue privacy notices under § N.Y. Comp. Codes R. & Regs. tit. 11 Part 420 (2001) (Regulation 169)?
Regulation 169 does not contain an exemption from issuing privacy notices for an insurer that is voluntarily running off its New York business even though it will not share information.
No fact pattern was specified since the question was of a general nature. The inquirer stated that the insurer was no longer writing new policies or renewing existing policies, but had policies that were still in force. The inquirer also stated that the insurer would not share policyholder information with any third party. We assume that would include any affiliate. However, we note that there may be circumstances under Sections 420.14 or 420.15 of the Regulation in which in the ordinary course of business information may have to be shared. For example, in servicing or processing a claim, or where fraud is suspected.
Regulation 169 does not currently contain an exemption from the notice requirements for an insurer under the circumstances that you describe. An insurer would therefore have to provide all of the notices required under the regulation.
For further information, you may contact Supervising Attorney Paul A. Zuckerman at the New York City office.