Can an Insured Impose Limitations on the Insurer’s Use of Personal Information During a Claim Investigation?

Originally published by Kenneth Kan.

In practically every homeowner insurance policy, the insurance company requires the insured to perform certain duties after a loss. Among the duties is to provide the insurance company, when requested, documents including banking or financial records. Often this type of documentation is requested in conjunction with an examination under oath, but can also be requested during the initial claim investigation. Many policyholders are uncomfortable furnishing personal financial records in fear that such information will not be safeguarded and will be used improperly. Well, can an insured require an insurer to execute a confidentiality agreement that imposes limitations on the insurer’s use of the insured’s personal information? This issue was addressed by a court of appeals in Oregon last month and the answer was no.

In Safeco Insurance Company of Oregon vs. Masood,1 the underlying claim involved a theft after a house fire. The insured reported a theft of approximately $3.5…

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