31 Pa. Code § 146a.12 - Annual privacy notice to customers required
(a)
Notice.
(1)
General rule. A licensee
shall provide a clear and conspicuous notice to customers that accurately
reflects its privacy policies and practices not less than annually during the
continuation of the customer relationship. Annually means at least once in any
period of 12 consecutive months during which that relationship exists. A
licensee may define the 12-consecutive-month period, but the licensee shall
apply it to the customer on a consistent basis.
(2)
Example. A licensee
provides a notice annually if it defines the 12-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
1, the licensee shall provide an annual notice to that customer by December 31
of year 2.
(b)
Exemption to general rule.
(1) A licensee is not required to provide an
annual privacy notice under this section if all of the following apply:
(i) The licensee has not changed its policies
or practices regarding disclosure of nonpublic personal financial information
from those in the most recent notice sent to consumers.
(ii) The disclosure of nonpublic personal
financial information is made to only nonaffiliated third parties and meets any
of the following requirements:
(A) Is made in
accordance with §
146a.31 (relating to exception to
opt out requirements for disclosure of nonpublic personal financial information
for service providers and joint marketing).
(B) Falls within the exceptions in §
146a.32 (relating to exceptions to
notice and opt out requirements for disclosure of nonpublic personal financial
information for processing and servicing transactions).
(C) Falls within the exceptions in §
146a.33 (relating to other
exceptions to notice and opt out requirements for disclosure of nonpublic
personal financial information).
(2) A licensee that no longer meets the
criteria in paragraph (1) shall provide an annual privacy notice under this
section.
(c)
Termination.
(1)
Termination of customer relationship. 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.
(2)
Examples.
(i) 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.
(ii) 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 12-consecutive months, other than to provide annual privacy
notices, material required by law or regulation, or promotional
materials.
(iii) For the purposes
of this section, 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.
(iv) 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.
(d)
Delivery. When a licensee is required by this section to
deliver an annual privacy notice, the licensee shall deliver it according to
§
146a.16 (relating to
delivery).
Notes
The provisions of this § 146a.12 amended under sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P.S. §§ 66, 186, 411 and 412); and the Unfair Insurance Practices Act (40 P.S. §§ 1171.1-1171.15).
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