28 Tex. Admin. Code § 22.11 - Form of Opt Out Notice to Consumers and Opt Out Methods
(a) Clear and conspicuous notice. If a
covered entity is required to provide an opt out notice under §
22.14(a) of this
title (relating to Limits on Disclosure of Nonpublic Personal Financial
Information to Nonaffiliated Third Parties), it must provide a clear and
conspicuous notice to each of its consumers that accurately explains the right
to opt out. The notice must state:
(1) that
the covered entity discloses or reserves the right to disclose nonpublic
personal financial information about its consumer to a nonaffiliated third
party;
(2) that the consumer has
the right to opt out of that disclosure; and
(3) a reasonable means by which the consumer
may opt out.
(b)
Adequate opt out notice. A covered entity provides adequate notice that the
consumer can opt out of the disclosure of nonpublic personal financial
information to a nonaffiliated third party if the covered entity:
(1) identifies all of the categories of
nonpublic personal financial information it discloses or reserves the right to
disclose, and all of the categories of nonaffiliated third parties to which the
covered entity discloses the information, as described in §
22.10(a)(2) and
(3) of this title (relating to Information to
be Included in Privacy Notices), and states that the consumer can opt out of
the disclosure of that information; and
(2) identifies the insurance products or
services the consumer obtains from the covered entity, either singly or
jointly, to which the opt out direction would apply.
(c) Reasonable opt out means. A covered
entity provides a reasonable means to exercise an opt out right if it:
(1) designates check-off boxes in a prominent
position on the relevant forms with the opt out notice; and
(2) includes the reply form together with the
opt out notice; or
(3) provides an
electronic means to opt out, such as a form that can be sent by electronic mail
or a process on the covered entity's website, if the consumer agrees to the
electronic delivery of information; or
(4) provides a toll-free telephone number
consumers may call to opt out.
(d) Unreasonable opt out means. A covered
entity does not provide a reasonable means of opting out if:
(1) the only means of opting out is for the
consumer to write his or her own letter to exercise that opt out right;
or
(2) the only means of opting out
as described in any notice subsequent to the initial notice is to use a
check-off box that the covered entity provided with the initial notice but did
not include with the subsequent notice.
(e) Specific opt out means. A covered entity
may require each consumer to opt out through a specific means, so long as that
means is reasonable for that consumer.
(f) Opt out notice with or on a written or
electronic form. A covered entity may provide the opt out notice together with,
or on the same written or electronic form as, the initial notice the covered
entity provides in accord with §
22.8 of this title (relating to
Initial Privacy Notice).
(g) Opt
out notice later than initial notice. If a covered entity provides the opt out
notice later than required for the initial notice in accord with §
22.8 of this title, the covered
entity must also include a copy of the initial notice with the opt out notice
in writing or, if the consumer agrees, electronically.
(h) Joint relationships. A covered entity
must use the procedures set out in paragraphs (1) - (4) of this subsection when
joint relationships between consumers are involved.
(1) If two or more consumers jointly obtain
or seek to obtain an insurance product or service from a covered entity, the
covered entity may provide a single opt out notice. The covered entity's opt
out notice must explain how the covered entity will treat an opt out direction
by a joint consumer (as explained in subsection (i) of this section).
(2) Any of the joint consumers may exercise
the right to opt out. The covered entity may either:
(A) treat an opt out direction by a joint
consumer as applying to all of the associated joint consumers; or
(B) permit each joint consumer to opt out
separately.
(3) If a
covered entity permits each joint consumer to opt out separately, the covered
entity must permit one of the joint consumers to opt out on behalf of all the
joint consumers.
(4) A covered
entity may not require all joint consumers to opt out before it implements any
opt out direction.
(i)
Examples. The following are examples of how a covered entity should treat a
joint relationship. If John and Mary are both named policyholders on a
homeowner's insurance policy issued by a covered entity and the covered entity
sends policy statements to John's address, the covered entity may do any of the
following, but it must explain in its opt out notice which opt out policy the
covered entity will follow:
(1) Send a single
opt out notice to John's address, but the covered entity must accept an opt out
direction from either John or Mary.
(2) Treat an opt out direction by either John
or Mary as applying to the entire policy. If the covered entity does so and
John opts out, the covered entity may not require Mary to opt out as well
before implementing John's opt out direction.
(3) Permit John and Mary to make different
opt out directions. If the covered entity does so:
(A) it must permit John and Mary to opt out
for each other;
(B) if both opt
out, the covered entity must permit both of them to notify it in a single
response (such as on a form or through a telephone call); and
(C) if John opts out and Mary does not, the
covered entity may only disclose nonpublic personal financial information about
Mary, but not about John, and not about John and Mary jointly.
(j) Opt out direction.
A covered entity must comply with a consumer's opt out direction as soon as
reasonably practicable after the covered entity receives it.
(k) Consumer's right to opt out. A consumer
may exercise the right to opt out at any time.
(l) A consumer's direction. A consumer's
direction to opt out under this section is effective until the consumer revokes
it in writing or, if the consumer has agreed to conduct business
electronically, electronically.
(m)
Customer relationship. When a customer relationship terminates, the customer's
opt out direction continues to apply to the nonpublic personal financial
information the covered entity collected during or related to that
relationship. If the individual subsequently establishes a new customer
relationship with the covered entity, the opt out direction that applied to the
former relationship does not apply to the new relationship.
(n) Opt out delivery. When a covered entity
is required to deliver an opt out notice by this section, the covered entity
must deliver it according to §
22.13 of this title (relating to
Delivery).
(o) Notice content
requirements. A model privacy form that meets the notice content requirement of
this section appears in 74 Federal Register 62890 (December 1,
2009). A covered entity may use the applicable model privacy form, consistent
with the instructions in §
22.27 of this title (relating to
General Instructions).
Notes
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