NAC679B.685. Notice of practices for gathering information; retention and disclosure of certain information.

     1. An insurance institution or agent shall provide a notice explaining its practices for gathering information to all applicants and policyholders in connection with insurance transactions pursuant to the following standards:

     (a) In the case of an application for insurance, the notice must be provided no later than:

          (1) The date on which the insurance policy or certificate is delivered when personal information is collected only from the applicant or from public records; or

          (2) The commencement of collecting personal information from a source other than the applicant or public records.

     (b) In the case of the renewal of a policy, the notice must be provided no later than the renewal date of the policy, except that no notice is required if:

          (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 provided to the policyholder within the previous 24 months.

     (c) In the case of the reinstatement of a policy or change in insurance benefits, the notice must be provided no later than the time a request for reinstatement or a change in insurance benefits is received by the insurance institution, except that no notice is required if personal information is collected only from the policyholder or from public records.

     2. The notice required by subsection 1 must be in writing and state:

     (a) Whether personal information may be collected from persons other than the natural person or natural persons proposed for coverage.

     (b) The types of personal information that may be collected and the types of sources and investigative techniques that may be used to collect the information.

     (c) The types of disclosures identified in subsections 2 to 6, inclusive, 9, 11, 12 and 14 of NAC 679B.730 and the circumstances under which those disclosures may be made without first obtaining authorization. Only circumstances which occur frequently enough to indicate a general business practice may be described.

     (d) A description of the rights established under NAC 679B.705 and 679B.710 and the manner in which those rights may be exercised.

     3. Information obtained from a report prepared by an insurance-support organization may be retained by the insurance-support organization and disclosed to other persons.

     4. In lieu of the notice required by subsection 1, the insurance institution or agent may provide an abbreviated notice informing the applicant or policyholder that:

     (a) Personal information may be collected from persons other than the natural person or natural persons proposed for coverage;

     (b) The information as well as other personal or privileged information subsequently collected by the insurance institution or agent may in certain circumstances be disclosed to third parties without authorization;

     (c) A right of access and correction exists with respect to all personal information collected; and

     (d) The notice prescribed in subsection 2 will be furnished to the applicant or policyholder upon request.

     5. The obligations imposed by this section upon an insurance institution or agent may be satisfied by another insurance institution or agent authorized to act on its behalf.

     (Added to NAC by Comm’r of Insurance, 10-4-88, eff. 1-1-89)