Current through August 26, 2024
(1) INITIAL NOTICE
REQUIREMENT. A licensee shall provide a clear and conspicuous notice that
accurately reflects its privacy policies and practices regarding nonpublic
personal financial information to all of the following:
(a) Customer. An individual who becomes the
licensee's customer, not later than when the licensee establishes a customer
relationship, except as provided in sub. (5).
(b) Consumer. 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 ss.
Ins 25.55 and 25.60.
(2) WHEN INITIAL NOTICE TO A CONSUMER IS NOT
REQUIRED. A licensee is not required to provide an initial notice to a consumer
under sub. (1) (b) if any of the following conditions apply:
(a) The licensee does not disclose any
nonpublic personal financial information about the consumer to any
nonaffiliated third party, other than as authorized by ss.
Ins 25.55 and 25.60, and the licensee does not have
a customer relationship with the consumer.
(b) An affiliated licensee has provided a
notice, 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 does any of the following:
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 intermediary who is not
acting as agent for an insurer licensee, obtains insurance through that
licensee. A licensee does not establish a customer relationship due to issuance
of a binder of coverage until the policy is issued, if the licensee allows the
consumer to request delivery of the initial notice required under sub. (1) (a)
and the licensee delivers the initial notice within a reasonable time after the
licensee receives such a request.
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 sub. (1) if any of the following
conditions are met:
(a) The licensee may
provide a revised policy notice, under s.
Ins 25.20, that covers the customer's new insurance
product or service.
(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 sub.
(1).
(5) EXCEPTIONS TO
ALLOW SUBSEQUENT DELIVERY OF NOTICE.
(a) A
licensee may provide the initial notice required by sub. (1) (a) within a
reasonable time after the licensee establishes a customer relationship if any
of the following conditions exist:
1.
Establishing the customer relationship is not at the customer's
election.
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) The following are examples of when
exceptions may or may not apply:
1.
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. 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. 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 s.
Ins 25.25. If the
licensee uses a short-form initial notice for non-customers according to s.
Ins 25.15(4), the licensee may deliver
its privacy notice according to s.
Ins 25.15(4) (c).
