Code of Maryland Regulations
Title 31 - MARYLAND INSURANCE ADMINISTRATION
Subtitle 16 - MISCELLANEOUS
Chapter 31.16.08 - Privacy of Consumer Financial and Health Information
Section 31.16.08.08 - Form of Opt Out Notice to Consumers and Opt Out Methods
Universal Citation: MD Code Reg 31.16.08.08
Current through Register Vol. 51, No. 19, September 20, 2024
A. Opt Out Notice Requirements.
(1) A licensee required to provide an opt out notice under Regulation .11A of this chapter shall provide a clear and conspicuous notice to each of the licensee's consumers that accurately explains the right to opt out under that regulation.
(2) A right to opt out notice required to be provided under §A(1) of this regulation 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.
(3) 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:
(a) Identifies all categories of nonpublic personal financial information that it discloses or reserves the right to disclose;
(b) Identifies all of the categories of nonaffiliated third parties to which the licensee discloses the information as described in Regulation .07A(2) and (3) of this chapter;
(c) States that the consumer can opt out of the disclosure of the nonpublic personal financial information; and
(d) Identifies the insurance products or insurance services that the consumer obtains from the licensee to which the opt out would apply.
(4) A licensee provides a reasonable means to exercise an opt out right if the licensee:
(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 that includes the form required under §A(4)(b) of this regulation 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.
(5) A licensee does not provide a reasonable means to exercise an opt out right if:
(a) The only means of opting out is for the consumer to write the consumer's own letter to exercise that opt out right; or
(b) 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.
(6) A licensee may require each consumer to opt out through a specific means, as long as that means is reasonable for that consumer.
B. 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 Regulation .05 of this chapter.
C. A licensee that provides the opt out notice later than required for the initial notice in accordance with Regulation .05 of this chapter 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 insurance 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.
(2) Any of the joint consumers may exercise the right to opt out.
(3) 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.
(4) 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.
(5) A licensee may not require all joint consumers to opt out before it implements any opt out direction.
E. A licensee shall comply with a consumer's opt out direction as soon as reasonably practicable after the licensee receives it.
F. A consumer may exercise the right to opt out at any time.
G. Duration of Opt Out Direction.
(1) A consumer's direction to opt out under this regulation 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.
(3) If an 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. A licensee required to deliver an opt out notice under this regulation shall deliver it in accordance with Regulation .10 of this chapter.
Disclaimer: These regulations may not be the most recent version. Maryland may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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