Fair Insurance Information Practices Act of 1980

Fair Insurance Information Practices Act of 1980 - Title I: Records Subject to Privacy Act - Exempts any insurance record maintained as part of a system of records by an agency, insurance institution, or agent (for the purposes of any Federal program) from certain Federal disclosure requirements if otherwise subject to the Fair Insurance Information Practices Act.

Title II: Notice Requirements - Requires an insurance company or agent to provide an applicant, prior to collecting personal information about such applicant, with a written application notice, including: (1) types of information to be collected from third-parties, especially regarding character, reputation, or lifestyle; (2) information-gathering techniques; (3) kinds of third-parties; (4) to whom, and under what circumstances, information may be disclosed without prior authorization; (5) types of information that may be so disclosed; (6) an applicant's right to know (upon request) to whom such disclosures were made; (7) information collected for noneligibility or noninsurance, such as marketing purposes; (8) an applicant's right to prohibit the disclosure of such noninsurance information; and (9) an applicant's right to correct or amend such personal information. States that such application notice may be provided as part of the insurance application.

Provides that summary notice (a written summary of the required information including a statement that full notice may be obtained upon request) shall be considered full notice.

Requires that prior to collecting marketing or other noninsurance information about an individual in connection with an insurance claim, such individual must be notified by the company or agent of his/her right to prohibit such information's disclosure.

Exempts renewal or change in coverage applications from notification requirements under this title if: (1) no new personal information is used; or (2) notification has been received by the individual within the preceeding 12 months.

Authorizes the company or agent to collect personal information immediately on an application or renewal received by mail or telephone provided the applicant is given notice within three business days after the application is taken or the insurance coverage is bound.

Provides, with regard to group policies, that proper notice to the group policyholder is sufficient notice.

States that the required notice shall be formulated on or before the effective date of this Act.

Requires the company or agent, in the case of an adverse underwriting decision, to provide the applicant with written notice setting forth: (1) the reasons for such decision; (2) the applicant's rights under this Act; and (3) the address to which to write to receive the information used by the company or agent in making such decision. Provides that upon such request, the company or agent shall provide the applicant within 20 business days with: (1) specific information used to support such adverse decision; and (2) names and addresses of such information sources. Requires such requests to be made within 120 business days of the notification date. Permits the company or agent to include the above information with the original notice of the adverse decision.

Exempts insurance policy denials, nonrenewals, or cancellations from such obligations if: (1) coverage is not available to a class of persons to which the applicant belongs, or a group policy is not renewed or canceled on a class basis; or (2) the individual did not pay his/her premiums, or the policy is not renewed or canceled on a statewide or nationwide basis. Requires proper written notice to be provided to a concerned individual.

Requires a company or agent to notify an applicant if such application is submitted to a substandard risk insurer.

States that a company is not obligated under this Act to provide notice to a group policyholder with regard to nonacceptance, nonrenewal, or refusal to change coverage. Stipulates that if such decision was based in whole or in part on individually identifiable personal information, notice shall be provided to those individuals.

States that the obligations imposed on a company or agent under this title may be performed by another authorized company or agent acting on its behalf, provided that such obligations are satisfied by a single company or agent.

Title III: Information Collection Practices - Requires a company, agent, or support organization to conform to notice requirements under this Act regarding kinds of information and sources.

Sets forth authorization statement requirements, including: (1) types of individuals authorized to disclose information; (2) to whom disclosure may be made; (3) purposes of disclosures; and (4) length of such authorization's validity.

Prohibits the use of pretext interviews to obtain personal information.

Title IV: Conditions of Disclosure - Prohibits a company or agent from disclosing individually identifiable personal information to a third party unless so authorized by the individual. States that such authorization (except as otherwise provided) may not exceed one year, and must identify the recipients of such information.

Authorizes a company, agent, or support organization to disclose personal information for: (1) insurance business purposes; (2) medical purposes; (3) marketing purposes; (4) business or legal purposes; (5) audits; (6) actuarial or research purposes; (7) policyholder participation in the governance of a mutual insurance company; (8) purposes of compliance with Federal, State, or regulatory authority or law; or (10) civil litigation. Sets forth requirements and guidelines for such disclosure.

Limits the use of such disclosed information by the recipient to the purpose for which it was originally disclosed.

Provides that for the purposes of this title, consumer reporting agencies shall be considered "support organizations" only to the extent that they use or disclose such personal information on behalf of insurance companies or agents.

Title V: Individual Access to Personal Information - Requires a company or agent to make any personal information in its control available to the individual to whom it refers, or to his/her legal representative.

Sets forth access procedures requiring the company or agent to: (1) notify the individual within ten business days if the request cannot be complied with because of insufficient specificity, and inform the individual of the information needed to comply with such request; (2) respond within 20 business days if it can comply with the request either orally, by mail, or by permitting the individual to see and copy in person such information; (3) respond within 20 business days if such request concerns claims information exempt from access; and (4) disclose, if recorded, the identity of persons who have been provided such information within the last two years.

Requires such information requests to also be provided with the identity of third-party sources, except for certain such sources who are natural persons acting in their personal capacities. Provides that medical records information may be provided directly to the individual, or under specified conditions, through a medical professional. Requires the individual to be notified by the company or agent if such information is provided through the medical professional.

Exempts from such access compliance requirements, information collected for use in: (1) a civil or criminal proceeding; (2) processing a third-party claim; or (3) processing an unsettled claim.

Allows a reasonable fee to be charged for handling such information requests, but prohibits any other fees to be charged. Excludes consumer reporting agencies from coverage under this title.

Title VI: Correction, Amendment, or Deletion of Recorded Personal Information - Provides an individual with the right to correct, amend, or delete any errors, misrepresentations, or misleading entries in his personal information file. Sets forth procedures requiring the company or agent within 30 business days of receipt of a written correction request to: (1) make such correction; or (2) notify the individual of refusal (upon proper grounds) to make such correction. Requires notice of such correction to be sent by the company or agent to: (1) the individual concerned; (2) any person designated by such individual who may have received such information within the last two years; and (3) certain consumer reporting agencies or insurance support organizations.

Requires a company to include an individual's statement concerning a disputed question in such information file, and to include such statement in any further third-party disclosures.

Excludes consumer reporting agencies from the definition of "support organization" under this title.

Title VII: Enforcement - Authorizes State insurance authorities to enforce this Act. Grants jurisdiction for such actions in the Untied States district courts.

Entitles an individual to bring a civil action under this Act in an appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction.

Prohibits such an action from being brought later than two years from the discovery of the violation or later than seven years from the date of the violation. Allows for the award of punitive damages, attorney's fees, and other reasonable litigation costs.

Provides for a fine of not more than $100,000 or not more than fine years imprisonment, or both, for a person who knowingly obtains or supplies personal insurance information under false pretenses, theft, bribery, or false or fraudulent representation.

Title VIII: Miscellaneous Provisions - States that an individual's exercise of the rights provided by this Act shall not prejudice his/her insurance benefits. Provides immunity for a company, agent, support organization, or authorized representative or employee who discloses or receives information under this Act, except as to false information intentionally disclosed.

States that this Act shall become effective 365 days after its enactment.

Title IX: Definitions - Defines specified terms for purposes of this Act.