Current through September 24, 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 of this rule; and
(b) Consumer. A consumer, before the licensee
discloses any nonpublic personal information about the consumer to any
nonaffiliated third party, if the licensee makes a disclosure other than as
authorized by rules 0780-1-72-.15 and 0780-1-72-.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 Subsection (1)(b) of this rule if:
(a)
The licensee does not disclose any nonpublic personal information about the
consumer to any nonaffiliated third party, other than as authorized by Rules
0780-1-72-.15 and 0780-1-72-.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) of this rule as follows:
(a) The licensee
may provide a revised policy notice, under rule 0780-1-72-.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) of this rule.
(5) Exceptions to allow subsequent
delivery of notice.
(a) A licensee may provide
the initial notice required by Subsection (1)(a) of this rule 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 rule 0780-1-72-.10. If the licensee uses a short-form initial
notice for non-customers according to rule 0780-1-72-.07(4), the licensee may
deliver its privacy notice according to rule 0780-1-72-.07(4)(c).
Authority: Public Acts of 2001; Chapter 107;
§1.
