§2206. Notice of insurance information practices






The following requirements apply to notices provided by regulated insurance entities. [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]








1. Written notice. 
A regulated insurance entity shall provide a written notice of information practices
to the applicant, policyholder or claimant in connection with all consumer insurance
transactions in accordance with the following.





A. In the case of an application for insurance, the notice must be provided no later
than:



(1) The time of the delivery of the insurance policy or certificate when personal
information is collected only from the applicant or from public records;






(2) The time the collection of personal information is initiated when personal information
is collected from a source other than the applicant or public records; or






(3) The time of initial notification to the consumer when the insurance transaction
is not initiated by the consumer and the consumer was selected based on specific criteria
derived from personal information obtained from any source. [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]














B. In the case of a policy renewal, the notice must be provided no later than the policy
renewal date, unless:



(1) Personal information is collected only from the policyholder or from public
records; or






(2) A notice meeting the requirements of this section has been given within the
previous 24 months. [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]














C. In the case of a policy reinstatement or change in insurance benefits, the notice
must be provided no later than the time the request for reinstatement or change in
benefits is received by the carrier, unless personal information is collected only
from the policyholder or from public records. [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]








[
1997, c. 677, §3 (NEW);
1997, c. 677, §5 (AFF)
.]








2. Required provisions. 
The notice must state:





A. Whether personal information may be collected from persons other than the insurance
consumer or consumers proposed for coverage; [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]











B. The types of personal information that may be collected and the types of sources
and investigative techniques that may be used to collect such information; [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]











C. The types of disclosures that may be made without prior authorization under section
2215 and the circumstances under which any such disclosures may be made without prior
authorization, except that only those circumstances need be described that occur with
such frequency as to indicate a general business practice; [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]











D. A description of the rights established under sections 2210 and 2211 and the manner
in which those rights may be exercised; [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]











E. That information obtained from a report prepared by an insurance support organization
may be retained by the insurance support organization and disclosed to other persons;
and [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]











F. A description of the types of persons who may have access to the insurance consumer's
personal information. [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]








[
1997, c. 677, §3 (NEW);
1997, c. 677, §5 (AFF)
.]








3. Abbreviated notice. 
In lieu of the notice prescribed in subsection 2, the regulated insurance entity
may provide an abbreviated notice informing the applicant or policyholder that:





A. Personal information may be collected from persons other than the insurance consumer
or consumers proposed for coverage; [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]











B. Information described in paragraph A as well as other personal information subsequently
collected by the regulated insurance entity may in certain circumstances be disclosed
to 3rd parties without authorization pursuant to section 2215; [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]











C. A right of access and correction exists with respect to all personal information
collected; and [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]











D. The notice prescribed in subsection 2 will be furnished to the applicant or policyholder
upon request. [1997, c. 677, §3 (NEW); 1997, c. 677, §5 (AFF).]








[
1997, c. 677, §3 (NEW);
1997, c. 677, §5 (AFF)
.]








4. Satisfaction by other carrier, producer or administrator. 
The notice requirements imposed by this section upon a regulated insurance entity
may be satisfied by a carrier, producer or administrator authorized to act on the
entity's behalf.


[
1997, c. 677, §3 (NEW);
1997, c. 677, §5 (AFF)
.]








5. Standard notice forms. 
All carriers shall develop and use standard notice forms, but are not required to
use the same form as other carriers.


[
1997, c. 677, §3 (NEW);
1997, c. 677, §5 (AFF)
.]





SECTION HISTORY

1997, c. 677, §3 (NEW).
1997, c. 677, §5 (AFF).