(1) A
licensee
shall provide a
clear and conspicuous notice that accurately reflects its
privacy policies and practices to the following persons and at the following
times:
a. An individual who becomes the
licensee's customer, not later than when the licensee establishes a customer
relationship, except as provided in subrule 90.3(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 rules
191-90.13 (505) and
191-90.14 (505).
(2) A
licensee is not required to
provide an initial notice to a
consumer under subrule 90.3(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 rules
191-90.13 (505) and
191-90.14 (505) 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; or
c. The
licensee has a customer relationship with the consumer and the consumer
consents to the licensee's searching for insurance coverage to replace existing
coverage or the licensee is selling the agency expiration lists or the agency
contract is canceled and the licensee is required to move the existing coverage
to a new carrier.
(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 does either of the following:
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.
(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 subrule 90.3(1) as follows:
a. The
licensee provides a revised policy
notice under rule
191-90.7 (505) that covers the
customer's new
insurance product or
service; or
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 subrule 90.3(1).
(5) A
licensee may provide the initial notice
required by paragraph 90.3(1)
"a" within a reasonable time
after the
licensee establishes a
customer relationship if:
a. Establishing the customer relationship is
not at the customer's election; or
b. 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.
Examples of notice within a reasonable time are as
follows:
* The establishment of the customer relationship is not at
the customer's election. Establishing the 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.
* There is substantial delay in the customer's transaction.
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.
* 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 website.
(6) When a
licensee is required by this rule
to deliver an initial privacy notice, the
licensee shall deliver it according
to rule
191-90.8 (505). If the
licensee uses a short-form initial notice for
noncustomers according to subrule 90.5(6), the
licensee may deliver its privacy
notice according to subrule 90.5(6).
