NAC679B.844. Annual privacy notice to customers required.

     1. A licensee shall provide a clear and conspicuous notice to customers that accurately reflects privacy policies and practices of the licensee not less than annually during the continuation of the customer relationship. A licensee may define the beginning of the period of 12 consecutive months, but the licensee must apply the period to customers on a consistent basis.

     2. A licensee provides a notice annually if the licensee:

     (a) Defines the period of 12 consecutive months as a calendar year; and

     (b) Provides the annual notice to the customer once in each calendar year following the calendar year in which the licensee provided the initial notice.

     3. A licensee is not required to provide an annual notice to a former customer.

     4. A licensee no longer has a continuing relationship with a natural person if:

     (a) The natural person no longer is a current policyholder of an insurance product or no longer obtains insurance services with or through the licensee.

     (b) The policy of a natural person has lapsed, expired or is otherwise inactive or dormant pursuant to the business practices of the licensee, and the licensee has not communicated with the customer about the relationship for a period of 12 consecutive months, other than to provide annual privacy notices, material required by law or regulation, or promotional materials.

     (c) The last known address of a natural person according to the records of the licensee is invalid.

     5. A licensee no longer has a “continuing relationship” with a customer in the case of providing real estate settlement services if, at the time the customer completes execution of all documents related to the real estate closing:

     (a) Payment for those services has been received; or

     (b) The licensee has completed all of his or her responsibilities with respect to the settlement, including, without limitation, filing documents on the public record,

Ê whichever occurs later.

     6. A licensee shall deliver the annual privacy notice required pursuant to this section in the manner provided by NAC 679B.862.

     7. For purposes of this section:

     (a) “A former customer” is a natural person with whom a licensee no longer has a continuing relationship.

     (b) “Annually” means at least once in any period of 12 consecutive months during which the customer relationship exists.

     (c) An address of record shall be deemed “invalid” if:

          (1) Mail sent to that address by the licensee has been returned as undeliverable; and

          (2) Subsequent attempts by the licensee to obtain a current valid address for the natural person have been unsuccessful.

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