Utah Admin. Code R590-206-3 - Definitions
Terms used in this rule are defined in Section 31A-1-301. Additional terms are defined as follows:
(1)
(a) "Clear and conspicuous" means that a
notice is reasonably understandable and designed to call attention to the
nature and significance of the information in the notice.
(b) "Clear and conspicuous" includes:
(i) presenting the information in the notice
in clear, concise sentences, paragraphs, and sections;
(ii) using short explanatory sentences or
bulleted lists whenever possible;
(iii) using definite, concrete, everyday
words and active voice whenever possible;
(iv) avoiding multiple negatives;
(v) avoiding legal and highly technical
business terminology;
(vi) avoiding
explanations that are imprecise and readily subject to different
interpretations;
(vii) using a
plain-language heading to call attention to the notice;
(viii) using a typeface and type size that
are easy to read;
(ix) providing
wide margins and ample line spacing;
(x) using boldface or italics for key words;
and
(xi) using distinctive type
size, style, and graphic devices, such as shading or sidebars.
(c) "Clear and conspicuous" also
includes, if a licensee provides a notice on a web page, the following:
(i) calling attention to the nature and
significance of the information in the notice by using text or visual cues to
encourage scrolling down the web page, if necessary, to view the entire notice
and ensure that other elements on the web page, such as text, graphics,
hyperlinks, or sound, do not distract attention from the notice;
(ii) placing the notice on a screen that
consumers frequently access, such as a page where transactions are conducted;
or
(iii) placing a link that
connects directly to the notice and is labeled appropriately to convey the
importance, nature, and relevance of the notice.
(2) "Collect" means to obtain information
that the licensee organizes or can retrieve by the name of an individual or by
identifying number, symbol, or other identifying particular assigned to the
individual, irrespective of the source of the underlying information.
(3) "Company" means a corporation, limited
liability company, business trust, general or limited partnership, association,
sole proprietorship, or similar organization.
(4)
(a)
"Consumer" means an individual who seeks to obtain, obtains, or has obtained an
insurance product or service from a licensee that is used primarily for a
personal, family, or household purpose, and about whom the licensee has
nonpublic personal information, or that individual's legal
representative.
(b) "Consumer"
includes:
(i) an individual who provides
nonpublic personal information to a licensee in connection with obtaining or
seeking to obtain financial, investment, or economic advisory services relating
to an insurance product or service;
(ii) an applicant for insurance before the
start of insurance coverage;
(iii)
an individual who is a beneficiary of a life insurance policy underwritten by
the licensee;
(iv) an individual
who is a claimant under an insurance policy issued by a licensee;
(v) an individual who is an insured or an
annuitant under an insurance policy or an annuity; and
(vi) an individual who is a mortgagor under a
mortgage insurance policy.
(c) "Consumer" does not include:
(i) an individual who is a consumer of
another financial institution, solely because the licensee acts as agent for,
or provides processing or other services to, that financial
institution;
(ii) a participant or
a beneficiary of an employee benefit plan that the licensee administers or
sponsors or for which the licensee acts as a trustee, insurer, or
fiduciary;
(iii) a person covered
under a group or blanket insurance policy or group annuity contract;
(iv) a claimant covered by a workers'
compensation plan;
(v) an
individual, solely because the individual is a beneficiary of a trust for which
the licensee is a trustee; or
(vi)
an individual, solely because the individual designates the licensee as trustee
for a trust.
(5) "Consumer reporting agency" has the same
meaning as in the Fair Credit Reporting Act,
15 U.S.C.
1681a(f).
(6) "Control," for purposes of this rule,
means:
(a) ownership, control, or power to
vote 25% or more of the outstanding shares of a class of voting security of a
company, directly or indirectly, or acting through one or more other
persons;
(b) control over the
election of a majority of the directors, trustees or general partners, or
individuals exercising similar functions, of a company; or
(c) the power to exercise, directly or
indirectly, a controlling influence over the management or policies of a
company, as the commissioner determines.
(7) "Customer" means a consumer who has a
customer relationship with a licensee.
(8)
(a)
"Customer relationship" means a continuing relationship between a consumer and
a licensee under which the licensee provides one or more insurance products or
services to the consumer that are used primarily for a personal, family, or
household purpose.
(b) "Customer
relationship" includes a consumer having a continuing relationship with a
licensee if:
(i) the consumer is a current
policyholder of an insurance product issued by or through the licensee;
or
(ii) the consumer obtains
financial, investment, or economic advisory services relating to an insurance
product or service from the licensee for a fee.
(c) "Customer relationship" does not exist
if:
(i) a consumer applies for insurance but
does not purchase the insurance;
(ii) a licensee sells a consumer airline
travel insurance in an isolated transaction;
(iii) an individual is no longer a current
policyholder of an insurance product or no longer obtains insurance services
with or through the licensee;
(iv)
a consumer is a beneficiary or a claimant under a policy and submitted a claim
under the policy choosing a settlement option involving an ongoing relationship
with the licensee;
(v) a consumer
is a beneficiary or a claimant under a policy and submitted a claim under the
policy choosing a lump sum settlement option;
(vi) a customer'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
12 consecutive months, other than annual privacy notices, material required by
law or rule, communication at the direction of a state or federal authority, or
promotional materials;
(vii) an
individual is an insured or an annuitant under an insurance policy or annuity
but is not the policyholder or owner of the insurance policy or annuity;
or
(viii) mail sent to an
individual's last known address according to the licensee's records is returned
by the postal authorities as undeliverable, and subsequent attempts by the
licensee to obtain a current valid address for the individual are
unsuccessful.
(9)
(a)
"Financial institution" means an institution that engages in activities that
are financial in nature or incidental to financial activities described in
Section 4(k) of the Bank Holding Company Act of 1956,
12 U.S.C.
1843(k).
(b) "Financial institution" does not mean:
(i) a person or entity that is subject to the
jurisdiction of the Commodity Futures Trading Commission under the Commodity
Exchange Act, 7 U.S.C.
1 et seq.;
(ii) the Federal Agricultural Mortgage
Corporation or any entity charged and operating under the Farm Credit Act of
1971, 12 U.S.C.
2001 et seq.; or
(iii) an institution chartered by Congress
specifically to engage in securitizations, secondary market sales, including
sales of servicing rights, or a similar transaction related to a transaction of
a consumer, if the institution does not sell or transfer nonpublic personal
information to a nonaffiliated third party.
(10)
(a)
"Financial product or service" means a product or service that a financial
holding company offers by engaging in an activity that is financial in nature
or incidental to a financial activity under Section 4(k) of the Bank Holding
Company Act of 1956, 12
U.S.C. 1843(k).
(b) "Financial product or service" includes a
financial institution's evaluation or brokerage of information that the
financial institution collects in connection with a request or an application
from a consumer for a financial product or service.
(11) "Health care," for purposes of this
rule, means:
(a) any preventive, diagnostic,
therapeutic, rehabilitative, maintenance or palliative care, service,
procedure, test, or counseling that:
(i)
relates to the physical, mental, or behavioral condition of an individual;
or
(ii) affects the structure or
function of the human body or any part of the human body, including banking of
blood, sperm, organs, or any other tissue; or
(b) prescribing, dispensing, or furnishing to
an individual:
(i) drugs or
biologicals;
(ii) medical devices;
or
(iii) health care equipment and
supplies.
(12)
"Health care provider," for purposes of this rule, means:
(a) a physician or other health care
practitioner who is licensed, accredited, or certified to perform specified
health services consistent with state law; or
(b) a health care facility.
(13) "Health information" means
information or data, except age or gender, whether oral or recorded in any form
or medium, created by or derived from a health care provider or a consumer,
that relates to:
(a) the past, present, or
future physical, mental, or behavioral health or condition of an
individual;
(b) the provision of
health care to an individual; or
(c) payment for the provision of health care
to an individual.
(14)
(a) "Insurance product or service" means a
product or service offered by a licensee.
(b) "Insurance product or service" includes a
licensee's evaluation, brokerage, or distribution of information that the
licensee collects in connection with a request or an application from a
consumer for an insurance product or service.
(15) "Joint agreement" means a written
contract where a licensee and one or more financial institutions jointly offer,
endorse, or sponsor a financial product or service.
(16)
(a)
"Licensee" means a licensed insurer, producer, or other person licensed or
required to be licensed, or authorized or required to be authorized, or
registered or required to be registered, in this state.
(b) A licensee is not subject to the notice
and opt out requirements for nonpublic personal financial information in
Sections R590-206-4 through
R590-206-17 if the licensee is
an employee, agent, or other representative of another licensee, the principal,
and:
(i) the principal complies with and
provides the notice required by this rule; and
(ii) the licensee does not disclose nonpublic
personal information to a person other than the principal or its affiliates in
a manner permitted by this rule.
(c)
(i)
Subject to Subsection
R590-206-3(16)(c)(ii),
"licensee" includes an unauthorized insurer that accepts business placed
through a licensed surplus lines broker in this state, but only in regard to
the surplus lines placements placed pursuant to Section
31A-15-103.
(ii) A surplus lines broker or surplus lines
insurer is compliant with the notice and opt out requirements for nonpublic
personal financial information under Sections
R590-206-4 through
R590-206-17 provided:
(A) the broker or insurer does not disclose
nonpublic personal financial information of a consumer or a customer to a
nonaffiliated third party for any purpose, including joint servicing or
marketing under Section
R590-206-15, except as permitted
by Section R590-206-16 or
R590-206-17; and
(B) the broker or insurer delivers a notice
to the consumer at the time a customer relationship is established on which the
following is printed in 16-point type:
PRIVACY NOTICE
"NEITHER THE U.S. BROKERS THAT HANDLED THIS INSURANCE NOR THE INSURERS THAT HAVE UNDERWRITTEN THIS INSURANCE WILL DISCLOSE NONPUBLIC PERSONAL INFORMATION CONCERNING THE BUYER TO NONAFFILIATES OF THE BROKERS OR INSURERS EXCEPT AS PERMITTED BY LAW."
(17)
(a)
"Nonaffiliated third party" means a company that is an affiliate solely by
virtue of the direct or indirect ownership or control of the company by the
licensee or its affiliate in conducting merchant banking or investment banking
activities or insurance company investment activities under the Bank Holding
Company Act, 12 U.S.C.
1843(k) (4)(H) and
(I).
(b) "Nonaffiliated third
party" does not include:
(i) an affiliate;
or
(ii) a person employed jointly
by a licensee and a company that is not an affiliate, but nonaffiliated third
party includes the other company that jointly employs the
person.
(18)
"Nonpublic personal information" means nonpublic personal financial information
and nonpublic personal health information.
(19)
(a)
"Nonpublic personal financial information" means:
(i) personally identifiable financial
information; and
(ii) any list,
description, or other grouping of consumer information and publicly available
information pertaining to the consumer, that is derived using any personally
identifiable financial information that is not publicly
available.
(b) "Nonpublic
personal financial information" includes any list of individuals' names and
street addresses that is derived in whole or in part using personally
identifiable financial information that is not publicly available, such as an
account number.
(c) "Nonpublic
personal financial information" does not include:
(i) health information;
(ii) publicly available
information;
(iii) a list,
description, or other grouping of consumer information;
(iv) publicly available information
pertaining to a consumer that is derived without using personally identifiable
financial information that is not publicly available; or
(v) a list of names and addresses that
contains only publicly available information, is not derived in whole or in
part using personally identifiable financial information that is not publicly
available, and is not disclosed in a manner that indicates that any of the
individuals on the list is a consumer of a financial institution.
(20) "Nonpublic personal
health information" means health information:
(a) that identifies an individual who is the
subject of the information; or
(b)
that could reasonably be used to identify an individual.
(21)
(a)
"Personally identifiable financial information" means any information:
(i) a consumer provides to a licensee to
obtain an insurance product or service;
(ii) about a consumer resulting from a
transaction involving an insurance product or service between a licensee and a
consumer; or
(iii) obtained by a
licensee about a consumer in connection with providing an insurance product or
service to that consumer.
(b) "Personally identifiable financial
information" includes:
(i) information a
consumer provides to a licensee on an application to obtain an insurance
product or service;
(ii) account
balance information and payment history;
(iii) information that an individual is or
has been a customer or has obtained an insurance product or service from the
licensee;
(iv) information about a
consumer if it is disclosed in a manner that indicates that the individual is
or has been a consumer of the licensee;
(v) information that a consumer provides to a
licensee or that the licensee or its agent otherwise obtains in connection with
collecting on a loan or servicing a loan;
(vi) information the licensee collects
through the internet, cookies, or an information-collecting device from a web
server; and
(vii) information from
a consumer report.
(c)
"Personally identifiable financial information" does not include:
(i) health information;
(ii) a list of names and addresses of
customers of an entity that is not a financial institution; and
(iii) information that does not identify a
consumer, such as aggregate information or blind data that does not contain
personal identifiers such as account numbers, names, or addresses.
(22)
(a) "Publicly available information" means
any information that a licensee has a reasonable basis to believe is lawfully
made available to the general public from:
(i) federal, state, or local government
records;
(ii) widely distributed
media;
(iii) disclosures to the
public that are required to be made by federal, state, or local law;
(iv) information that is available to the
public;
(v) information that an
individual can direct to not be made available to the public, and the
individual has not done so;
(vi)
government real estate records and security interest filings; and
(vii) widely distributed media including
information from:
(A) a telephone
book;
(B) television;
(C) a radio program;
(D) a newspaper; or
(E) a website that is available to the
general public.
Notes
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