NAC679B.842. Initial privacy notice to consumers required.

     1. Except as otherwise provided in this section, a licensee shall provide a clear and conspicuous notice that accurately reflects the privacy policies and practices of the licensee to:

     (a) A natural person who becomes a customer of the licensee not later than when the licensee establishes a customer relationship.

     (b) If the licensee makes a disclosure other than as authorized by NAC 679B.872 and 679B.874, a consumer before the licensee discloses any nonpublic personal financial information about the consumer to a nonaffiliated third party.

     2. A licensee is not required to provide an initial notice to a consumer pursuant to paragraph (b) of subsection 1 if:

     (a) A notice has been provided by an affiliated licensee, which notice clearly and accurately identifies all licensees and other institutions to whom the notice applies; or

     (b) The licensee does not:

          (1) Disclose any nonpublic personal financial information about the consumer to any nonaffiliated third party, other than a disclosure authorized by NAC 679B.872 and 679B.874; and

          (2) Have a customer relationship with the consumer.

     3. When an existing customer obtains a new insurance product or service from a licensee that is to be used primarily for personal, family or household purposes, the licensee satisfies the initial notice requirements of subsection 1 by providing a revised policy notice pursuant to NAC 679B.860 that covers the new insurance product or service obtained by the customer.

     4. If the initial, revised or annual notice that the licensee most recently provided to that customer was accurate with respect to the new insurance product or service, the licensee is not required to provide a new privacy notice pursuant to subsection 1.

     5. A licensee may provide the initial notice required by paragraph (a) of subsection 1 within a reasonable time after the licensee establishes a customer relationship if:

     (a) Establishing the customer relationship is not at the election of the customer; or

     (b) Providing a notice not later than when the licensee establishes a customer relationship:

          (1) Would substantially delay the transaction of the customer; and

          (2) The customer agrees to receive the notice at a later time.

     6. For the purposes of subsection 5:

     (a) A notice provided not later than when a licensee establishes a customer relationship substantially delays the transaction of a customer if the licensee and the natural person agree over the telephone to enter into a customer relationship involving the prompt delivery of the insurance product or service.

     (b) A notice provided not later than when a licensee establishes a customer relationship does not substantially delay the transaction of a customer if the relationship is initiated in person at the office of the licensee or through other means by which the customer may view the notice, including, without limitation, a website containing the notice.

     7. If a licensee is required to deliver an initial privacy notice pursuant to this section, the licensee shall deliver the notice in the manner provided in NAC 679B.862.

     8. If a licensee uses a short form initial notice for noncustomers pursuant to NAC 679B.848, the licensee may deliver its privacy notice in the manner provided in NAC 679B.862.

     9. For the purposes of this section, a customer relationship is not established at the election of a customer if:

     (a) A licensee acquires or is assigned a policy of a customer from another financial institution or residual market mechanism; and

     (b) The customer does not have a choice about the acquisition or assignment of the policy by the licensee.

     (Added to NAC by Comm’r of Insurance by R130-01, eff. 12-17-2002)