Current through Register Vol. XLI, No. 38, September 20, 2024
4.1. A licensee shall provide a clear and
conspicuous notice to customers that accurately reflects its privacy policies and
practices regarding disclosure of nonpublic personal financial information not less
than annually during the continuation of the customer relationship. Annually means
at least once in any period of twelve (12) consecutive months during which that
relationship exists. A licensee may define the twelve-consecutive-month period, but
the licensee shall apply it to the customer on a consistent basis.
a. A licensee provides a notice annually if it
defines the twelve-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 opens
an account on any day of year one, the licensee shall provide an annual notice to
that customer by December 31 of year two.
4.2. A licensee is not 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.
a. 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.
b. 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 twelve (12) consecutive months, other than to provide
annual privacy notices, material required by law or regulation, or promotional
materials.
c. For the purposes of this
rule, 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 by the postal authorities as undeliverable and if
subsequent attempts by the licensee to obtain a current valid address for the
individual have been unsuccessful.
d. 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 received, or the licensee has completed all of its
responsibilities with respect to the settlement, including filing documents on the
public record, whichever is later.
4.3. When a licensee is required by this section
to deliver an annual privacy notice, the licensee shall deliver it according to
section 8.
