read Read

e-mail E-mailprint Print

SOCIAL SECURITY NUMBER PRIVACY

(Current as of February 2003)

THE ISSUE IS: Legislation to prohibit the display of Social Security numbers by government agencies and the private sector.

IT'S IMPORTANT BECAUSE: Over the past few years, the incidence of identity theft has been rising. This increase is largely due to the fact that it is relatively easy for individuals to access other people's Social Security numbers. In an effort to reduce identity theft and to protect the privacy of individuals, Congress is considering legislation to restrict the use and display of Social Security numbers by government agencies and private entities.

On January 27, 2003, Senators Dianne Feinstein (D-Calif.), Judd Gregg (R-N.H.) and Patrick Leahy (D-Vt.) introduced S. 228, the Social Security Number Misuse Prevention Act, which would place sharp restrictions on the public's use of Social Security numbers. This legislation would require companies to allow customers to opt-out of having their addresses, phone numbers and other non-sensitive information sold for marketing purposes and would require companies to obtain an opt-in from individuals before selling, licensing or renting sensitive personal information such as Social Security numbers, drivers' licenses, and financial and health information.

The bill would also restrict the purchase, sale and display of Social Security numbers to the public. Federal, state and local governments would be prohibited from displaying Social Security numbers on records provided to the public and from using them as default drivers' license numbers. The bill would allow the sharing of Social Security numbers to facilitate business to business transactions provided that appropriate safeguards are put into place and public access is not permitted. It is likely that similar legislation will soon be introduced in the House of Representatives.

NAMIC POSITION: NAMIC believes that measures should be taken to reduce identity theft. Identity theft is a crime that causes tremendous expense for individual victims and the economy each year. It is important for certain entities to be able to continue to use Social Security numbers for legitimate business purposes such as transmitting credit reports for major financial transactions and accessing driver records for insurance underwriting purposes. Requiring governments and business to create other individual identifiers to use instead of Social Security numbers would be extremely expensive. NAMIC will work with Congress to find ways to prevent fraud and to protect the privacy of individuals while making sure that information is available for legitimate purposes that will ultimately benefit consumers.

powered by Google

Legislative Action Network

As a "minuteman," you will be in the know at the critical moment when a call to action is necessary or when decisions are being made on issues like federal regulation of insurance, legal reform, terrorism insurance, asbestos reform and small property/casualty company taxation.

Benjamin Franklin Public Policy Award

Every two years, NAMIC presents their coveted Benjamin Franklin Public Policy Award© to lawmakers who have supported a stronger insurance market at least 75 percent of the time. This is demonstrated based on their support of NAMIC's position on certain roll call votes taken, or being a principal player/sponsor on legislation affected the property/casualty insurance industry, during the previous Congress.