Current through Supplement No. 394, October, 2024
1.
Initial notice requirement. A
licensee shall provide a clear and conspicuous notice that accurately reflects
its privacy policies and practices to:
a.
Customer. An individual who becomes the licensee's customer, not later than
when the licensee establishes a customer relationship, except as provided in
subsection 5; and
b. Consumer. A
consumer, when the licensee requests authorization to disclose any nonpublic
personal financial information about the consumer to any nonaffiliated third
party, if the licensee makes a disclosure other than as authorized by sections
45-14-01-15 and
45-14-01-16.
2.
When initial notice to a consumer is
not required. A licensee is not required to provide an initial notice to
a consumer under subdivision b of subsection 1 if:
a. The licensee does not request
authorization to disclose any nonpublic personal financial information about
the consumer to any nonaffiliated third party, other than as authorized by
sections 45-14-01-15 and
45-14-01-16, and the licensee does
not have a customer relationship with the consumer; or
b. 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.
3.
When the licensee establishes a customer relationship.
a. General rule. A licensee establishes a
customer relationship at the time the licensee and the consumer enter into a
continuing relationship.
b.
Examples of establishing customer relationship. A licensee establishes a
customer relationship when the consumer:
(1)
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
(2)
Agrees to obtain financial, economic, or investment advisory services relating
to insurance products or services for a fee from the licensee.
4.
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 1 as follows:
a. The licensee may
provide a revised policy notice, under section
45-14-01-09, that covers the
customer's new insurance product or service; or
b. 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 1.
5.
Exceptions to allow subsequent
delivery of notice.
a. A licensee may
provide the initial notice required by subdivision a of subsection 1 within a
reasonable time after the licensee establishes a customer relationship if:
(1) Establishing the customer relationship is
not at the customer's election; or
(2) 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.
b. Examples of
exceptions:
(1) 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.
(2) 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.
(3) 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.
6.
Delivery. When a licensee is
required to deliver an initial privacy notice by this section, the licensee
shall deliver it according to section
45-14-01-10. If the licensee uses
a short-form initial notice for noncustomers according to subsection 4 of
section 45-14-01-07, the licensee may
deliver its privacy notice according to subdivision c of subsection 4 of
section 45-14-01-07.
General Authority: NDCC 28-32-02
Law Implemented: NDCC
26.1-02-27
