Current through Register Vol. XLI, No. 38, September 20, 2024
3.1. A licensee shall provide a clear and
conspicuous notice that accurately reflects its privacy policies and practices
regarding disclosure of nonpublic personal financial information to:
a. An individual who becomes the licensee's
customer, not later than when the licensee establishes a customer relationship,
except as provided in subsection 3.5; and
b. A consumer, before the licensee discloses 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
13 and 14.
3.2. A licensee is
not required to provide an initial notice to a consumer under subdivision b of
subsection 3.1 if:
a. The licensee does not
disclose any nonpublic personal financial information about the consumer to any
nonaffiliated third party, other than as authorized by sections 13 and 14, 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.
3.3. A licensee
establishes a customer relationship at the time the licensee and the consumer enter
into a continuing 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.
3.4. 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 3.1 of this section if the
licensee provides a revised policy notice, under section 7, that covers the
customer's new insurance product or service. 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 3.1.
3.5.
a. A
licensee may provide the initial notice required by subdivision a of subsection 3.1
of this section 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
A. 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; or
B. 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.
b. 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.
3.6. When a
licensee is required to deliver an initial privacy notice by this section, the
licensee shall deliver it according to section 8. If the licensee uses a short-form
initial notice for non-customers according to subsection 5.3, the licensee may
deliver its privacy notice according to subdivision b of subsection 5.3.
