New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter XIX - Privacy Of Consumer Financial and health Information
Part 420 - Privacy Of Consumer Financial And Health Information
Privacy and Opt Out Notices for Financial Information
Section 420.5 - Annual privacy notice to customers required
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 420.5
Current through Register Vol. 46, No. 12, March 20, 2024
(a)
(1)
General rule. Except as provided in subdivision (b) of this section, a licensee
shall provide a clear and conspicuous notice to customers that accurately
reflects its privacy policies and practices not less than annually during the
continuation of the customer relations hip. Annually means at least once in any
period of 12 consecutive months during which that relationship exists. A
licensee may define the 12-consecutive-month period, but the licensee shall
apply it to the customer on a consistent basis.
(2) Example. A licensee provides a notice
annually if it defines the 12-consecutive-month period as a calendar year and
provides the annual notice to the customer once in each calendar year following
the calendar year in which the licensee provided the initial notice. For
example, if a customer buys an insurance policy on any day of year one, then
the licensee shall provide an annual notice to that customer by December 31 of
year two, but thereafter, shall provide each subsequent annual notice within 12
calendar months of the prior annual notice.
(b) Exception to general rule. A licensee shall not be required to provide an annual disclosure under subdivision (a) of this section if the licensee:
(1) provides
nonpublic personal information to nonaffiliated third parties only, in
accordance with sections
420.13,
420.14
or
420.15;
and
(2) has not changed its
policies and practices, with regard to disclosing nonpublic personal
information, from the policies and practices that the licensee disclosed in the
most recent disclosure sent to consumers in accordance with section
420.4
of this Part or this section.
(c)
(1)
Termination of customer relationship. A licensee shall not be required to
provide an annual notice to a former customer. A former customer is an
individual with whom a licensee no longer has a continuing
relationship.
(2) Examples.
(i) A licensee no longer has a continuing
relationship with an individual if the individual no longer is a current
policyholder of an insurance product or no longer obtains insurance services
with or through the licensee.
(ii)
A licensee no longer has a continuing relationship with an individual if the
individual's policy is lapsed, expired or otherwise inactive or dormant under
the licensee's business practices, and the licensee has not communicated with
the customer about the relationship for a period of 12 consecutive months,
other than to provide annual privacy notices, material required by law or
regulation, or promotional materials.
(iii) For the purposes of this Part, a
licensee no longer has a continuing relationship with an individual if the
individual's last known address according to the licensee's records is deemed
invalid. An address of record is deemed invalid if mail sent to that address by
the licensee has been returned as undeliverable and if subsequent attempts by
the licensee to obtain a current valid address for the individual have been
unsuccessful.
(iv) A licensee no
longer has a continuing relationship with a customer in the case of providing
real estate settlement services, at the time the customer completes execution
of all documents related to the real estate closing, payment for those services
has been receive d, or the licensee has completed all of its responsibilities
with respect to the settlement, including filing documents on the public
record, whichever is later.
(d) Delivery. When the licensee is required by this section to deliver an annual privacy notice, the licensee shall deliver it according to section 420.9 of this Part.
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