What is the purpose of the Disclosure Authorization Notice?

The purpose of the Disclosure Authorization Notice is to state the insurer's practice on collecting personal information. This notice informs the applicant or policyholder about how their personal and health-related information will be used, shared, and protected by the insurance company. It is a critical component in ensuring transparency and accountability in the way insurers handle sensitive data, giving individuals an understanding of their privacy rights and the safeguards in place.

This notice is crucial for maintaining trust between the insurer and the insured, as it clarifies the extent to which the insurer can access and utilize personal information in their operations, which includes underwriting, claims processing, and risk assessment. By informing policyholders of these practices, the disclosure promotes informed consent when it comes to sharing personal health information.