Privacy of Consumer Financial and Health Information Regulation

What this document is

Privacy of Consumer Financial and Health Information Regulation is a naic model law published by National Association of Insurance Commissioners (NAIC). It is one of the documents that insurance license exam questions are written from, including life & health, personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Section 12A(1)

  “A. (1) Conditions for disclosure. Except as otherwise authorized in this regulation, a licensee may not, directly or through any affiliate, disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party unless: (a) The licensee has provided to the consumer an...”

• Section 5E(1)

  “E. Exceptions to allow subsequent delivery of notice. (1) A licensee may provide the initial notice required by Subsection A(1) of this section within a reasonable time after the licensee establishes a customer relationship if: (a) Establishing the customer relationship is not at the customer’s...”

• Section 8G

  “G. Duration of consumer’s opt out direction. (1) A consumer’s direction to opt out under this section is effective until the consumer revokes it in writing or, if the consumer agrees, electronically. (2) When a customer relationship terminates, the customer’s opt out direction continues to apply to...”

• Section 8D

  “D. Joint relationships. (1) If two (2) or more consumers jointly obtain an insurance product or service from a licensee, the licensee may provide a single opt out notice. The licensee’s opt out notice shall explain how the licensee will treat an opt out direction by a joint consumer (as explained...”

• Section 6C(1)

  “C. (1) Termination of customer relationship. A licensee is not required to provide an annual notice to a former customer. A former customer is an individual with whom a licensee no longer has a continuing relationship.”

• Section 11D

  “D. Oral description of notice insufficient. A licensee may not provide any notice required by this regulation solely by orally explaining the notice, either in person or over the telephone.”

• Section 5A(1)

  “A. Initial notice requirement. A licensee shall provide a clear and conspicuous notice that accurately reflects its privacy policies and practices to: (1) Customer. An individual who becomes the licensee’s customer, not later than when the licensee establishes a customer relationship, except as...”

• Section 13A(1)

  “A. (1) Information the licensee receives under an exception. If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution under an exception in Sections 16 or 17 of this regulation, the licensee’s disclosure and use of that information is limited as...”

• NAIC Model #672, Section 6A(2) (Annual Privacy Notice to Customers Required; Example)

  “as a calendar year and provides the annual notice to the customer once in each calendar year following the calendar year in which the licensee provided the initial notice. For example, if a customer opens an account on any day of year 1, the licensee shall provide an annual notice to that customer...”

• NAIC Model #672, Section 12A(3)(a) (Examples of reasonable opportunity to opt out; by mail)

  “(a) By mail. The licensee mails the notices required in Paragraph (1) of this subsection to the consumer and allows the consumer to opt out by mailing a form, calling a toll-free telephone number or any other reasonable means within thirty (30) days from the date the licensee mailed the notices.”

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