Current through Register Vol. 48, No. 12, March 22, 2024
a) Form of opt out notice. If a licensee is
required to provide an opt out notice under Section
4002.100(a)
of this Part, it shall provide a clear and conspicuous notice to each of its
consumers that accurately explains the right to opt out under Section
4002.100
of this Part. The notice shall state:
1) That
the licensee discloses or reserves the right to disclose nonpublic personal
financial information about its consumer to a nonaffiliated third
party;
2) That the consumer has the
right to opt out of that disclosure and identifies:
A) All of the categories of nonpublic
personal financial information that it discloses or reserves the right to
disclose, and all of the categories of nonaffiliated third parties to which the
licensee discloses the information, as described in Section
4002.60(a)(2)
and (3) of this Part, and states that the
consumer can opt out of the disclosure of that information; and
B) The insurance products or services that
the consumer obtains from the licensee, either singly or jointly, to which the
opt out direction would apply; and
3) A reasonable means by which the consumer
may exercise the opt out right by providing one of the following:
A) Designates check-off boxes in a prominent
position on the relevant forms with the opt out notice;
B) Includes a reply form together with the
opt out notice;
C) Provides an
electronic means to opt out, such as a form that can be sent via electronic
mail or a process at the licensee's web site, if the consumer agrees to the
electronic delivery of information; or
D) Provides a toll-free telephone number that
consumers may call to opt out.
b) A licensee does not provide a reasonable
means of opting out pursuant to subsection (a) of this Section if:
1) The only means of opting out is for the
consumer to write his or her own letter to exercise that opt out right;
or
2) The only means of opting out
as described in any notice subsequent to the initial notice is to use a
check-off box that the licensee provided with the initial notice but did not
include with the subsequent notice.
c) A licensee may require each consumer to
opt out through a specific means, as long as that means is reasonable for the
consumer.
d) Same form as initial
notice permitted. A licensee may provide the opt out notice together with or on
the same written or electronic form as the initial notice the licensee provides
in accordance with Section
4002.40
of this Part.
e) Initial notice
required when opt out notice delivered subsequent to initial notice. If a
licensee provides the opt out notice later than required for the initial notice
in accordance with Section
4002.40
of this Part, the licensee shall also include a copy of the initial notice with
the opt out notice in writing or, if the consumer agrees,
electronically.
f) Joint
relationships.
1) If 2 or more consumers
jointly obtain an insurance product or service from a licensee, the licensee
may provide a single opt out notice. The licensee's opt out notice shall
explain how the licensee will treat an opt out direction by a joint consumer as
explained in subsection (f)(5) of this Section.
2) Any of the joint consumers may exercise
the right to opt out. The licensee may either:
A) Treat an opt out direction by a joint
consumer as applying to all of the associated joint consumers; or
B) Permit each joint consumer to opt out
separately.
3) If a
licensee permits each joint consumer to opt out separately, the licensee shall
permit one of the joint consumers to opt out on behalf of all of the joint
consumers.
4) A licensee may not
require all joint consumers to opt out before it implements any opt out
direction.
5) Example. If John and
Mary are both named policyholders on a homeowner's insurance policy issued by a
licensee and the licensee sends policy statements to John's address, the
licensee may do any of the following, but it shall explain in its opt out
notice which opt out policy the licensee will follow:
A) Send a single opt out notice to John's
address, but the licensee shall accept an opt out direction from either John or
Mary.
B) Treat an opt out direction
by either John or Mary as applying to the entire policy. If the licensee does
so and John opts out, the licensee may not require Mary to opt out as well
before implementing John's opt out direction.
C) Permit John and Mary to make different opt
out directions. If the licensee does so:
i)
It shall permit John and Mary to opt out for each other;
ii) If both opt out, the licensee shall
permit both of them to notify it in a single response (such as on a form or
through a telephone call); and
iii)
If John opts out and Mary does not, the licensee may only disclose nonpublic
personal financial information about Mary, but not about John and not about
John and Mary jointly.
g) Time to comply with opt out. A licensee
shall comply with a consumer's opt out direction as soon as reasonably
practicable after the licensee receives it.
h) Continuing right to opt out. A consumer
may exercise the right to opt out at any time.
i) Duration of consumer's opt out direction.
1) A consumer's direction to opt out under
this Section is effective until the consumer revokes it in writing or, if the
consumer agrees, electronically.
2)
When a customer relationship terminates, the customer's opt out direction
continues to apply to the nonpublic personal financial information that the
licensee collected during or related to that relationship. If the individual
subsequently establishes a new customer relationship with the licensee, the opt
out direction that applied to the former relationship does not apply to the new
relationship.
j)
Delivery. When a licensee is required to deliver an opt out notice by this
Section, the licensee shall deliver it according to Section
4002.90 of
this Part.