Filed Under:Risk Management, Loss Control

Red Flags Rule: Are You Ready? — Podcast

Neil Posner is Chair of the Policyholders' Insurance Coverage group at the Chicago area law firm of Much Shelist
Neil Posner is Chair of the Policyholders' Insurance Coverage group at the Chicago area law firm of Much Shelist

The Red Flags Rule, which was signed into law on Dec. 18, 2010 and took effect Jan. 1, 2011, requires many businesses and organizations to implement a written identity theft prevention program designed to detect the warning signs — or "red flags" — of identity theft in their day-to-day operations. Specifically, financial institutions, creditors, users of consumer reports, and issuers of credit and debit cards must comply with the new regulations or face significant, even criminal, consequences.

To learn more about the Red Flags Rule, including its potential effect on insurers, ways to ensure compliance, and penalties for not doing so, PropertyCasualty360.com spoke with Neil Posner, Chair of the Policyholders' Insurance Coverage group at the Chicago area law firm of Much Shelist.

Mr. Posner asserts that without an explicit exemption by the Federal Trade Commission (FTC), insurers are subject to the Red Flags Rule because, depending on each individual insurance company’s structure, they could fall within the definition of “financial institution” or “creditor,” both of which are affected by the legislation. Likewise, there would be no exemption for those like independent claim adjusters who provide services on a given set of days and invoice their clients for payment on a later date.

To listen to the podcast, click the play button below.

Featured Video

Most Recent Videos

Video Library ››

Top Story

9 fraudsters join the Hall of Shame

Meet the newest insurance fraud criminals to achieve infamy.

Top Story

Insurance industry education is more than just letters after your name

Continued education isn't just nice to have. For many insurance professionals it's a requirement for their jobs or licenses. Here are some national organizations to help you get those designations.

More Resources

Comments

eNewsletter Sign Up

PropertyCasualty360 Daily eNews

Get P&C insurance news to stay ahead of the competition in one concise format - FREE. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.