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POTENTIAL CIVIL LIABILITY OF COMMUNICATIONS BETWEEN INSURANCE COMPANIES AND LAW ENFORCEMENT AGENCIES

NCJ Number
68580
Author(s)
B WEINTRAUB
Date Published
1978
Length
39 pages
Annotation
A STATE-BY-STATE REVIEW OF STATUTES AND COURT CASES THAT MIGHT AFFECT POTENTIAL CIVIL LIABILITY OF INSURANCE FIRMS THAT COOPERATE IN REPORTING SUSPECTED CRIMES TO LAW ENFORCEMENT AGENCIES FINDS THAT SUCH POTENTIAL EXISTS.
Abstract
UNDER AN LEAA GRANT, THE NEW YORK STATE COMMITTEE ON TRANSPORTATION CONDUCTED AN INDEPTH REVIEW OF THE FACTORS WHICH CONTRIBUTE TO THE RELUCTANCE OF MANY INSURANCE COMPANIES TO ASSIST LAW ENFORCEMENT OFFICIALS IN CASES OF SUSPECTED AUTO THEFT AND FRAUDULENT CLAIMS. INSURANCE COMPANIES ARE REPOSITORIES OF VAST AMOUNTS OF HIGHLY PERSONAL AND CONFIDENTIAL INFORMATION THEY ARE RELUCTANT TO COMPILE AND DISCLOSE TO POLICE AUTHORITIES BECAUSE THEY FEAR CIVIL LIABILITY ON ONE OF THREE GROUNDS: DEFAMATION, MALICIOUS PROSECUTION, AND THE RIGHT OF PRIVACY. A STATE-BY-STATE EXAMINATION OF STATUTES AND COURT DECISIONS FINDS THAT, ALTHOUGH NO SUCH DAMAGE SUIT HAS EVER BEEN FILED, THE THREAT OF CIVIL ACTION DOES SEEM TO EXIST. THE COMMITTEE RECOMMENDS THAT LEGISLATURES SPECIFICALLY EXEMPT INSURANCE COMPANIES FROM SUCH SUITS. IT ALSO RECOMMENDS THAT POLICE AUTHORITIES RECOGNIZE THE CONFIDENTIALITY OF ANY INFORMATION REVEALED BY AN INSURANCE COMPANY. THE COMPANIES THEMSELVES MUST ALSO MAKE CRIMEFIGHTING AN IMPORTANT ASPECT OF THEIR LOSS-PREVENTION PROGRAM AND ENCOURAGE COOPERATION WITH LAW ENFORCEMENT AGENCIES. APPLICABLE STATUTES ARE LISTED FOR EACH STATE. THE TEXT CONTAINS NUMEROUS COURT CITATIONS.