Current through Register Vol. 50, No. 9, September 20, 2024
A.
1. Form
of Opt Out Notice. If a licensee is required to provide an opt out notice under
§9923, it shall provide a clear and conspicuous notice to each of its consumers
that accurately explains the right to opt out under that Section. The notice
shall state:
a. that the licensee discloses or
reserves the right to disclose nonpublic personal financial information about
its consumer to a nonaffiliated third party;
b. that the consumer has the right to opt out
of that disclosure; and
c. a
reasonable means by which the consumer may exercise the opt out
right.
2. Examples
a. Adequate Opt Out Notice. A licensee
provides adequate notice that the consumer can opt out of the disclosure of
nonpublic personal financial information to a nonaffiliated third party if the
licensee:
i. identifies 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
§9915. A.2 and 3, and
states that the consumer can opt out of the disclosure of that information;
and
ii. identifies the insurance
products or services that the consumer obtains from the licensee, either singly
or jointly, to which the opt out direction would apply.
b. Reasonable Opt Out Means. A licensee
provides a reasonable means to exercise an opt out right if it:
i. designates check-off boxes in a prominent
position on the relevant forms with the opt out notice;
ii. includes a reply form together with the
opt out notice;
iii. 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
iv. provides a toll-free telephone number
that consumers may call to opt out.
c. Unreasonable Opt Out Means. A licensee
does not provide a reasonable means of opting out if:
i. the only means of opting out is for the
consumer to write his or her own letter to exercise that opt out right;
or
ii. 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.
d. Specific Opt Out Means. A licensee may
require each consumer to opt out through a specific means, as long as that
means is reasonable for that consumer.
B. 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
§9911
C. 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 §9911,
the licensee shall also include a copy of the initial notice with the opt out
notice in writing or, if the consumer agrees, electronically.
D. Joint Relationships
1. If two 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 Paragraph
5 of this Subsection).
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.
E. 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.
F. Continuing Right to Opt Out. A consumer
may exercise the right to opt out at any time.
G. 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.
H.
Delivery. When a licensee is required to deliver an opt out notice by this
Section, the licensee shall deliver it according to
§9921
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
22:2,
22:3,
22:3052,
22:3054
and Gramm-Leach-Bliley Act,
Public Law
106-102 Nov. 12,
1999).
