Current through Reg. 50, No. 13; March 28, 2025
(a) The
term consumer includes, but is not limited to:
(1) an individual who provides nonpublic
personal financial information to a covered entity in connection with obtaining
or seeking to obtain financial, investment or economic advisory services
relating to an insurance product or service regardless of whether the covered
entity establishes an ongoing relationship.
(2) an applicant for insurance prior to the
inception of insurance coverage.
(3) an individual, if the covered entity
discloses nonpublic personal financial information about the individual to a
nonaffiliated third party other than as permitted under §
22.17 of this title (relating to
Exception to Opt Out Requirements for Disclosure of Nonpublic Personal
Financial Information for Service Providers and Joint Marketing), §
22.18 of this title (relating to
Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic
Personal Financial Information for Processing and Servicing Transactions) and
§
22.19 of this title (relating to
Other Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic
Personal Financial Information), and:
(A) the
individual is a beneficiary of a life insurance policy underwritten by the
covered entity;
(B) the individual
is a claimant under an insurance policy issued by the covered entity;
(C) the individual is an insured or an
annuitant under an insurance policy or an annuity, respectively, issued by the
covered entity; or
(D) the
individual is a mortgagor of a mortgage covered under a mortgage insurance
policy.
(b)
Examples of when individuals will not be considered consumers of a covered
entity:
(1) an individual who is a consumer of
another financial institution is not a covered entity's consumer solely because
the covered entity is acting as agent for, or provides processing or other
services to, that financial institution.
(2) an individual is not a covered entity's
consumer solely because he or she is a beneficiary of a trust for which the
covered entity is a trustee.
(3) an
individual is not a covered entity's consumer solely because he or she has
designated the covered entity as trustee for a trust.
(c) Special requirements for employee benefit
plans, group or blanket insurance policies, group annuity contracts, or
workers' compensation policies.
(1) An
individual who is a participant or a beneficiary of an employee benefit plan
that a covered entity administers or sponsors or for which the covered entity
acts as a trustee, insurer or fiduciary is not the consumer of a covered entity
that:
(A) provides all initial, annual and
revised notices required by this subchapter to the employer or other entity
establishing the plan; and
(B) does
not disclose nonpublic personal financial information about the individual to a
nonaffiliated third party other than as permitted under §§
22.17,
22.18, and
22.19 of this title.
(2) An individual who is covered
under a group or blanket insurance policy or group annuity contract issued by a
covered entity is not the consumer of a covered entity that:
(A) provides all initial, annual and revised
notices required by this subchapter to the policyholder or contractholder;
and
(B) does not disclose nonpublic
personal financial information about the individual to a nonaffiliated third
party other than as permitted under §§
22.17,
22.18, and
22.19 of this title.
(3) An individual that is a
claimant under or beneficiary of a workers' compensation policy issued by a
covered entity is not the consumer of a covered entity that:
(A) provides all initial, annual and revised
notices required by this subchapter to the plan participant; and
(B) does not disclose nonpublic personal
financial information about the individual to a nonaffiliated third party other
than as permitted under §§
22.17,
22.18, and
22.19 of this title.
(d) An individual
described in subsection (c) of this section is the consumer of a covered entity
that does not comply with the applicable notice and nondisclosure requirements
of that subsection.
(e) In no event
shall an individual, solely by virtue of his status described in subsection (c)
of this section, be deemed to be the customer of a covered entity for purposes
of this subchapter.