Current through Register Vol. 35, No. 18, September 24, 2024
A.
Initial notice requirement. A licensee shall provide a clear and
conspicuous notice that accurately reflects its privacy policies and practices
to:
(1)
Customer. An individual
who becomes the licensee's customer, not later than when the licensee
establishes a customer relationship, except as provided in subsection E of
13.1.3.8 NMAC; and
(2)
Consumer. A consumer, when the licensee requests authorization to
disclose any nonpublic personal financial information about the consumer to any
nonaffiliated third party other than disclosures listed in 13.1.3.18 NMAC and
13.1.3.19 NMAC for which no authorization is required.
B.
When initial notice to a consumer
is not required. A licensee is not required to provide an initial notice
to a consumer under paragraph (2) of subsection A of 13.1.3.8 NMAC if:
(1) The licensee does not request
authorization to disclose any nonpublic personal information about the consumer
to any nonaffiliated third party, other than disclosures listed in 13.1.3.18
NMAC and 13.1.3.19 NMAC for which no authorization is required, and the
licensee does not have a customer relationship with the consumer; or
(2) A notice has been provided by an
affiliated licensee, as long as the notice clearly identifies all
licensees to whom the notice applies and is accurate with
respect to the licensee and the other institutions.
C.
When the licensee
establishes a customer relationship.
(1)
General rule. A licensee
establishes a customer relationship at the time the licensee and the consumer
enter into a continuing relationship.
(2)
Examples of establishing customer
relationship. A licensee establishes a customer relationship when the
consumer:
(a) Becomes a policyholder of a
licensee that is an insurer when the insurer delivers an insurance policy or
contract to the consumer, or in the case of a licensee that is an insurance
producer or insurance broker, obtains insurance through that licensee;
or
(b) Agrees to obtain financial,
economic or investment advisory services relating to insurance products or
services for a fee from the licensee.
D.
Existing customers. When an
existing customer obtains a new insurance product or service from a licensee
that is to be used primarily for personal, family or household purposes, the
licensee satisfies the initial notice requirements of subsection A of 13.1.3.8
NMAC as follows:
(1) The licensee may provide
a revised policy notice, under 13.1.3.12 NMAC, that covers the customer's new
insurance product or service; or
(2) If the initial, revised or annual notice
that the licensee most recently provided to that customer was accurate with
respect to the new insurance product or service, the licensee does not need to
provide a new privacy notice under subsection A of 13.1.3.8 NMAC.
E.
Exceptions to allow
subsequent delivery of notice.
(1) A
licensee may provide the initial notice required by paragraph (1) of subsection
A of 13.1.3.8 NMAC within a reasonable time after the licensee establishes a
customer relationship if:
(a) Establishing the
customer relationship is not at the customer's election; or
(b) Providing notice not later than when the
licensee establishes a customer relationship would substantially delay the
customer's transaction and the customer agrees to receive the notice at a later
time.
(2)
Examples of exceptions.
(a)
Not
at customer's election. Establishing a customer relationship is not at
the customer's election if a licensee acquires or is assigned a customer's
policy from another financial institution or residual market mechanism and the
customer does not have a choice about the licensee's acquisition or
assignment.
(b)
Substantial
delay of customer's transaction. Providing notice not later than when a
licensee establishes a customer relationship would substantially delay the
customer's transaction when the licensee and the individual agree over the
telephone to enter into a customer relationship involving prompt delivery of
the insurance product or service.
(c)
No substantial delay of customer's
transaction. Providing notice not later than when a licensee establishes
a customer relationship would not substantially delay the customer's
transaction when the relationship is initiated in person at the licensee's
office or through other means by which the customer may view the notice, such
as on a web site.
F.
Delivery. When a licensee is
required to deliver an initial privacy notice by this section, the licensee
shall deliver it according to 13.1.3.13 NMAC.
