Cal. Code Regs. Tit. 10, § 2689.5 - Initial Privacy Notice

Current through Register 2021 Notice, Register No. 40, October 1, 2021

(a) In addition to any notice of information practices required by California Insurance Code Section 791.04, licensees shall provide notice as required by this section. Licensees may provide the notices required by California Insurance Code Section 791.04 and this section in a single combined notice or in separate notices, so long as all the requirements of California Insurance Code Section 791.04 and these regulations are satisfied. If a licensee uses a California notice and another separate notice, the California notice shall clearly state that any rights a consumer, claimant, or beneficiary may have as described in the California notice are not limited by the standard privacy notice that the licensee also uses.

A licensee shall provide a clear and conspicuous notice that accurately reflects its privacy policies and practices to:

(1) A customer, not later than when the licensee establishes a customer relationship, except as provided in subsection (c) of this section: and
(2) A consumer, claimant, or beneficiary before the licensee discloses any nonpublic personal information about the consumer, claimant, or beneficiary to any nonaffiliated third party, if the licensee makes a disclosure other than as authorized by California Insurance Code Section 791.13(a) through (j) or (l) through (r), unless the licensee has a customer relationship with the consumer, claimant, or beneficiary, or a notice has been provided by an affiliated licensee, the notice clearly identifies all licensees to whom the notice applies, and is accurate with respect to the licensee and the other institutions.
(b) When an existing customer obtains a new insurance product or service, intended primarily for personal, family, or household purposes, the licensee need not provide a new initial notice if the notice most recently provided by the licensee or an affiliate is accurate with respect to the licensee and the affiliate.
(c) A licensee may provide the initial notice required by subsection (a)(1) within a reasonable time after the licensee establishes a customer relationship if:
(1) Establishing the customer relationship is not at the customer's election; for example, if a licensee acquires or is assigned a customer's policy from another licensee 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 the licensee establishes a customer relationship would substantially delay the customer's transaction; for example, 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. In that case, the customer shall be provided with oral notice of the licensee's privacy policies, provided that the privacy notice is mailed or provided in electronic form within fourteen (14) business days after the sale, and documentation is maintained showing that oral disclosure was provided to the customer. For licensees who do not disclose personal information other than as permitted by California Insurance Code Section 791.13, an oral disclosure is not required.

The customer's transaction is not substantially delayed 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.


Cal. Code Regs. Tit. 10, § 2689.5

Note: Authority cited: Sections 791- 791.27, Insurance Code; and 15 U.S.C. Sections 6801, 6805 and 6807. Reference: Section 791.04, Insurance Code; 15 U.S.C. Section 6803.

1. New article 2 (sections 2689.5-2689.10) and section filed 11-22-2002; operative 3-24-2003 (Register 2002, No. 47).

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