Can a State Farm Agent release info about my insurance payments to someone who is not on the account?
My boyfriend has his car insurance through State Farm and his State Farm agent called his mother about his car insurance and told her that he’s behind on it. Can he do that? He’s 25 years old and his moms not on the insurance account. I work for a student loan company and I know that we cannot speak to anyone about anything at all if there not on the account. Does the same go here?
All members of the household are considered one household unit with State Farm, and their policies can and do affect each other. For example, I'm sure your boyfriend enjoys a multi-car discount because his policy is linked with his parents', and they likely qualified him for a much better rate than he could have gotten on his own. If he gets a DUI (not that he would – I'm just trying to show you how this works!) every auto policy in his household would get canceled, even though his policy may be in only his name.
If your boyfriend's policy cancels for non-payment that can mean an increase for his parents' policy, as he is still considered youthful. Also, if he has a claim surcharge on his policy that could get transferred to their policy if he no longer has one of his own.
The agent's office is trying to be helpful, not embarrass your boyfriend. Tell him to call and ask that his policy not be discussed with his parents. They will try to accommodate him, at least until it infringes on his parents' policies.
The only way to completely separate it would be if your boyfriend moved out on his own. Perhaps, since he is 25, he'll be ready for that soon. Then he won't have to worry about this at all.
I hope he was able to get everything taken care of!
- Related Reading
- The MLM Success Story
By Rebecca Commerford186 Rebecca Commerford186How To Touch The Success Level In MLM For people interested in making money in some...
Technically no. However agents have more leeway when it comes to this type of act than strictly a finance company. Most State Farm agents have generational accounts, meaning that they insure kids, mom/dad & grandma/grandpa as a result of referral business. In this type of scenario, it would be common for an agent to contact another family member if something is askew in a family members policy. This is actually a protection thing for your boyfriend, if he is behind on his policy and gets into an accident, he would be held personally liable for all damages caused and could financially ruin him for ever.
References :
I am pretty sure that is what the new Hipaa law is. I work for an insurance company and it is way against the law for us to deliver any information on anyone’s account if they are not labeled on the acct. That is big trouble.
References :
All members of the household are considered one household unit with State Farm, and their policies can and do affect each other. For example, I'm sure your boyfriend enjoys a multi-car discount because his policy is linked with his parents', and they likely qualified him for a much better rate than he could have gotten on his own. If he gets a DUI (not that he would – I'm just trying to show you how this works!) every auto policy in his household would get canceled, even though his policy may be in only his name.
If your boyfriend's policy cancels for non-payment that can mean an increase for his parents' policy, as he is still considered youthful. Also, if he has a claim surcharge on his policy that could get transferred to their policy if he no longer has one of his own.
The agent's office is trying to be helpful, not embarrass your boyfriend. Tell him to call and ask that his policy not be discussed with his parents. They will try to accommodate him, at least until it infringes on his parents' policies.
The only way to completely separate it would be if your boyfriend moved out on his own. Perhaps, since he is 25, he'll be ready for that soon. Then he won't have to worry about this at all.
I hope he was able to get everything taken care of!
References :
15 years as an agent for State Farm, retired.
They were very much in the wrong,not unless his mom has a power of attorney for him can they discuss his account. They can call and say there is important Business they need to discuss with him but they can not disclose anything personal or specific to him. Hippa prevents things of this nature.
References :
Insurance Agent
Yep, unless the boyfriend said, “call my mom and see if she’ll pay”, he’s not allowed to do that. It’s against the privacy laws.
References :
That is completely improper. I would strongly recommend filing a complaint with the organization that is responsible for licencing agents in your jurisdiction.
References :
I work for a State Farm Agent… and I am the person who makes those phone calls when someone is late paying.
We are NOT supposed to advise the specific reason for calling unless there is a note on the file that it is ok to speak with other hh members.
The agent should not have advised the reason for the call… every time I call… I will advise that it is of a personal matter and I can’t discuss with anyone except the policyholder.
He DEFINITELY address the issue with the agent!!!! BIG TIME!!! He also might want to provide a cell phone number instead of the home #.
References :
HIPAA only applies to the medical field – not insurance or finance.
“Q. To whom does HIPAA apply?
A. HIPAA applies to “covered entities.” A covered entity is a health care provider, a health care clearinghouse and a health plan. For our purposes, “health plans” are defined to include insurance companies that issue, among other types of health insurance, long term care insurance.
Note: HIPAA specifically does not directly apply to insurance companies that issue life insurance, annuities and disability income insurance. So for purposes of your relationship, HIPAA essentially only directly applies to long term care business.”
The agent probably thought that they were doing your BF a favor, especially if they didn’t have a current number OR if your BF ignored messages left by the agent. What if your BF had become severely ill or incapacitated? He was not trying to do it to get him in trouble, but, because he is caring for his clients. That being said, you receive copies of the privacy policy all the time – read it and see. If he does not want info disclosed under ANY circumstances, tell him to have the agent make a note on his records. Has his mom brought the money to the office for his bill before? Has your BF, even a long time ago, given permission for his mom to be a secondary contact? He needs to go in and calmly discuss the situation with his agent and specify or update his wishes.
References :
http://www.thompsonagency.net/hipaa_2003.htm
Licensed Insurance Producer
Not suppose to unless you have given them permission in the past.
References :