PART II.  PRIVACY AND OPT OUT

NOTICES FOR FINANCIAL INFORMATION

 

§431:3A-201 Initial privacy notice to consumers required.  (a)  A licensee shall provide a clear and conspicuous notice thataccurately reflects its privacy policies and practices to a consumer:

(1)  Not later than when the licensee establishes acustomer relationship, except as provided in subsection (d); and

(2)  Before the licensee discloses any nonpublicpersonal financial information about the consumer to any nonaffiliated thirdparty, if the licensee makes a disclosure other than as authorized by sections431:3A-402 and 431:3A-403.

(b)  Alicensee shall not be required to provide an initial notice to a consumer undersubsection (a)(2) if:

(1)  The licensee does not disclose any nonpublicpersonal financial information about the consumer to any nonaffiliated thirdparty, other than as authorized by sections 431:3A-402 and 431:3A-403, and thelicensee does not have a customer relationship with the consumer; provided thatfor purpose of this paragraph, a licensee establishes a customer relationshipat the time the licensee and the consumer enter into a continuing relationship;and

(2)  A notice has been provided by an affiliatedlicensee, if the notice clearly identifies all licensees to whom the noticeapplies and is accurate with respect to the licensee and the otherinstitutions.

(c)  When an existing customer obtains a newinsurance product or service from a licensee that is to be used primarily forpersonal, family, or household purposes, the licensee shall be deemed tosatisfy the initial notice requirements of subsection (a) if:

(1)  The licensee provides a revised privacy notice,under section 431:3A-205, that covers the customer's new insurance product orservice; or

(2)  The initial, revised, or annual notice that thelicensee most recently provided to that customer was accurate with respect tothe new insurance product or service, in which case the licensee does not needto provide a new privacy notice under subsection (a).

(d)  Alicensee may provide the initial notice under subsection (a)(1) within areasonable time after the licensee establishes a customer relationship if:

(1)  Establishing the customer relationship is not atthe customer’s election; or

(2)  Providing notice not later than when the licenseeestablishes a customer relationship would substantially delay the customer’stransaction and the customer agrees to receive the notice at a later time.

(e)  When alicensee is required to deliver an initial privacy notice by this section, thelicensee shall deliver it according to section 431:3A-206.  If the licenseeuses a short-form initial notice for noncustomers according to section431:3A-203(c), the licensee may deliver its privacy notice according to section431:3A-206. [L 2001, c 220, pt of §1; am L 2003, c 212, §31]