NAC679B.846. Information to be included in privacy notices: General items; description of parties subject to exceptions; categories of information collected and disclosed; categories of affiliates and nonaffiliated third parties to whom information disclosed.

     1. In addition to any other information the licensee wishes to provide that applies to the licensee and to the consumers to whom the licensee sends a privacy notice, the initial, annual and revised privacy notices that a licensee provides pursuant to NAC 679B.842, 679B.844 and 679B.860, respectively, must include the following items of information:

     (a) The categories of nonpublic personal financial information that the licensee collects.

     (b) The categories of nonpublic personal financial information about the customers and former customers of the licensee that the licensee discloses.

     (c) The categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information, other than those parties to whom the licensee discloses information pursuant to NAC 679B.872 and 679B.874.

     (d) The categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information about the former customers of the licensee, other than those parties to whom the licensee discloses information pursuant to NAC 679B.872 and 679B.874.

     (e) If a licensee discloses nonpublic personal financial information to a nonaffiliated third party pursuant to NAC 679B.870, and no other exception in NAC 679B.872 and 679B.874 applies to that disclosure, a separate description of the categories of information the licensee discloses and the categories of third parties with whom the licensee has contracted.

     (f) An explanation of the right of the consumer pursuant to NAC 679B.864 to opt out of the disclosure of nonpublic personal financial information to nonaffiliated third parties, including, without limitation, the methods by which the consumer may exercise that right at that time.

     (g) Any disclosures that the licensee makes pursuant to 15 U.S.C. § 1681a(d)(2)(A)(iii) of the Fair Credit Reporting Act, which concerns notices of the ability to opt out of disclosures of information among certain affiliates.

     (h) The policies and practices of the licensee with respect to protecting the confidentiality and security of nonpublic personal financial information.

     (i) Any disclosure that the licensee makes pursuant to subsection 2.

     2. If a licensee discloses nonpublic personal financial information as authorized pursuant to NAC 679B.872 and 679B.874, the licensee is not required to list those exceptions in the initial or annual privacy notices required by NAC 679B.842 and 679B.844, respectively.

     3. When describing the categories of parties to whom a disclosure is made, a licensee is required to state only that the disclosures are made to other affiliated or nonaffiliated third parties, if applicable, as permitted by law.

     4. A licensee satisfies the requirement to categorize the nonpublic personal financial information collected by the licensee if the licensee categorizes the information according to the source of the information as follows:

     (a) Information from the consumer;

     (b) Information about the transactions of the consumer with the licensee or affiliates of the licensee;

     (c) Information about the transactions of the consumer with nonaffiliated third parties; and

     (d) Information from a consumer reporting agency.

     5. A licensee satisfies the requirement to categorize nonpublic personal financial information disclosed by the licensee if the licensee categorizes the information according to the source of the information, as described in subsection 4, as applicable, and provides examples to illustrate the types of information in each category. These may include:

     (a) Information from the consumer, including application information, such as assets and income, and identifying information, such as name, address and social security number;

     (b) Transaction information, such as information about balances, payment history and parties to the transaction; and

     (c) Information from consumer reports, such as a consumer’s creditworthiness and credit history.

     6. A licensee does not adequately categorize the information that it discloses if the licensee uses only general terms, such as transaction information about the consumer.

     7. If a licensee reserves the right to disclose all the nonpublic personal financial information about consumers that it collects, the licensee may simply state that fact without describing the categories or examples of nonpublic personal financial information that the licensee discloses.

     8. A licensee satisfies the requirement to categorize the affiliates and nonaffiliated third parties to which the licensee discloses nonpublic personal financial information about consumers if the licensee identifies the types of businesses in which they engage. The types of businesses may be described in general terms only if the licensee uses illustrative examples of significant lines of business. A licensee may use the term “financial products or services” if it includes appropriate examples of significant lines of businesses, including, without limitation:

     (a) A life insurer;

     (b) An automobile insurer; or

     (c) A consumer banking or securities brokerage.

     9. A licensee may categorize the affiliates and nonaffiliated third parties to which it discloses nonpublic personal financial information about consumers using more detailed categories.

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