Senate Introduced Bill B00431

SENATE BILL No. 431

April 26, 2001, Introduced by Senator BULLARD and referred to the Committee on Financial Services.

A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

(MCL 500.100 to 500.8302) by adding chapter 5.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 CHAPTER 5

2 PRIVACY OF FINANCIAL INFORMATION

3 SEC. 501. (1) THIS CHAPTER APPLIES TO THE TREATMENT OF NON-

4 PUBLIC PERSONAL FINANCIAL INFORMATION ABOUT INDIVIDUALS WHO

5 OBTAIN OR ARE CLAIMANTS OR BENEFICIARIES OF PRODUCTS OR SERVICES

6 PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES FROM

7 LICENSEES WHETHER THROUGH AN INDIVIDUAL OR GROUP PLAN. THIS

8 CHAPTER DOES NOT APPLY TO INFORMATION ABOUT COMPANIES OR ABOUT

9 INDIVIDUALS WHO OBTAIN PRODUCTS OR SERVICES FOR BUSINESS,

10 COMMERCIAL, OR AGRICULTURAL PURPOSES.

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1 (2) THIS CHAPTER DOES NOT MODIFY, LIMIT, OR SUPERSEDE

2 STATUTE OR RULES GOVERNING THE CONFIDENTIALITY OR PRIVACY OF

3 INDIVIDUALLY IDENTIFIABLE HEALTH AND MEDICAL INFORMATION, INCLUD-

4 ING, BUT NOT LIMITED TO, ALL OF THE FOLLOWING:

5 (A) SECTION 2157 OF THE REVISED JUDICATURE ACT OF 1961, 1961

6 PA 236, MCL 600.2157.

7 (B) SECTION 1750 OF THE MENTAL HEALTH CODE, 1974 PA 258, MCL

8 330.1750.

9 (C) SECTIONS 2631, 2637, 6111, 6521, 17078, 17752, 18117,

10 18237, 20175, 20201, 21515, AND 21743 OF THE PUBLIC HEALTH CODE,

11 1978 PA 368, MCL 333.2631, 333.2637, 333.6111, 333.6521,

12 333.17078, 333.17752, 333.18117, 333.18237, 333.20175, 333.20201,

13 333.21515, AND 333.21743.

14 (D) SECTION 406 OF THE NONPROFIT HEALTH CARE CORPORATION

15 REFORM ACT, 1980 PA 350, MCL 550.1406.

16 (E) SECTIONS 410 AND 492A OF THE MICHIGAN PENAL CODE, 1931

17 PA 328, MCL 750.410 AND 750.492A.

18 (F) SECTION 13 OF THE FREEDOM OF INFORMATION ACT, 1976 PA

19 442, MCL 15.243.

20 (G) SECTION 34 OF THE THIRD PARTY ADMINISTRATOR ACT, 1984 PA

21 218, MCL 550.934.

22 SEC. 503. AS USED IN THIS CHAPTER:

23 (A) "AFFILIATE" MEANS ANY COMPANY THAT CONTROLS, IS CON-

24 TROLLED BY, OR IS UNDER COMMON CONTROL WITH ANOTHER COMPANY.

25 (B) "ANNUAL NOTICE" MEANS THE PRIVACY NOTICE REQUIRED IN

26 SECTION 513.

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1 (C) "CLEAR AND CONSPICUOUS" MEANS THAT A NOTICE IS

2 REASONABLY UNDERSTANDABLE AND DESIGNED TO CALL ATTENTION TO THE

3 NATURE AND SIGNIFICANCE OF THE INFORMATION IN THE NOTICE.

4 (D) "COLLECT" MEANS TO OBTAIN INFORMATION THAT THE LICENSEE

5 ORGANIZES OR CAN RETRIEVE BY THE NAME OF AN INDIVIDUAL OR BY

6 IDENTIFYING NUMBER, SYMBOL, OR OTHER IDENTIFYING PARTICULAR

7 ASSIGNED TO THE INDIVIDUAL, IRRESPECTIVE OF THE SOURCE OF THE

8 UNDERLYING INFORMATION.

9 (E) "COMPANY" MEANS ANY CORPORATION, LIMITED LIABILITY COM-

10 PANY, BUSINESS TRUST, GENERAL OR LIMITED PARTNERSHIP, ASSOCIA-

11 TION, SOLE PROPRIETORSHIP, OR SIMILAR ORGANIZATION.

12 (F) "CONSUMER" MEANS AN INDIVIDUAL, OR THE INDIVIDUAL'S

13 LEGAL REPRESENTATIVE, WHO SEEKS TO OBTAIN, OBTAINS, OR HAS

14 OBTAINED AN INSURANCE PRODUCT OR SERVICE FROM A LICENSEE THAT IS

15 TO BE USED PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD

16 PURPOSES. AS USED IN THIS CHAPTER:

17 (i) "CONSUMER" INCLUDES, BUT IS NOT LIMITED TO, ALL OF THE

18 FOLLOWING:

19 (A) AN INDIVIDUAL WHO PROVIDES NONPUBLIC PERSONAL INFORMA-

20 TION TO A LICENSEE IN CONNECTION WITH OBTAINING OR SEEKING TO

21 OBTAIN FINANCIAL, INVESTMENT, OR ECONOMIC ADVISORY SERVICES

22 RELATING TO AN INSURANCE PRODUCT OR SERVICE. AN INDIVIDUAL IS A

23 CONSUMER UNDER THIS SUBPARAGRAPH REGARDLESS OF WHETHER THE

24 LICENSEE ESTABLISHES AN ONGOING ADVISORY RELATIONSHIP.

25 (B) AN APPLICANT FOR INSURANCE PRIOR TO THE INCEPTION OF

26 INSURANCE COVERAGE.

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1 (C) A BENEFICIARY OF A LIFE INSURANCE POLICY UNDERWRITTEN BY

2 THE LICENSEE.

3 (D) A CLAIMANT UNDER AN INSURANCE POLICY ISSUED BY THE

4 LICENSEE.

5 (E) AN INSURED UNDER AN INSURANCE POLICY OR AN ANNUITANT

6 UNDER AN ANNUITY ISSUED BY THE LICENSEE.

7 (F) A MORTGAGOR OF A MORTGAGE COVERED UNDER A MORTGAGE

8 INSURANCE POLICY.

9 (G) AN INDIVIDUAL ABOUT WHICH THE LICENSEE DISCLOSES NONPUB-

10 LIC PERSONAL FINANCIAL INFORMATION TO A NONAFFILIATED THIRD PARTY

11 OTHER THAN AS PERMITTED UNDER SECTIONS 535, 537, AND 539.

12 (ii) UNLESS OTHERWISE SPECIFICALLY PROVIDED, "CONSUMER" DOES

13 NOT INCLUDE AN INDIVIDUAL SOLELY BECAUSE HE OR SHE MEETS 1 OF THE

14 FOLLOWING:

15 (A) IS A PARTICIPANT OR A BENEFICIARY OF AN EMPLOYEE BENEFIT

16 PLAN THAT THE LICENSEE ADMINISTERS OR SPONSORS OR FOR WHICH THE

17 LICENSEE ACTS AS A TRUSTEE, INSURER, OR FIDUCIARY.

18 (B) IS COVERED UNDER A GROUP OR BLANKET INSURANCE POLICY OR

19 GROUP ANNUITY CONTRACT ISSUED BY THE LICENSEE.

20 (C) IS A BENEFICIARY IN A WORKER'S COMPENSATION PLAN.

21 (D) IS A BENEFICIARY OF A TRUST FOR WHICH THE LICENSEE IS A

22 TRUSTEE.

23 (E) HAS DESIGNATED THE LICENSEE AS TRUSTEE FOR A TRUST.

24 (G) "CONSUMER REPORTING AGENCY" HAS THE SAME MEANING AS IN

25 SECTION 603(f) OF THE FEDERAL FAIR CREDIT REPORTING ACT, TITLE VI

26 OF THE CONSUMER CREDIT ACT, PUBLIC LAW 90-321, 15 U.S.C. 1681a.

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1 (H) "CONTROL", FOR THE PURPOSE OF THIS CHAPTER ONLY, MEANS 1

2 OR MORE OF THE FOLLOWING:

3 (i) OWNERSHIP, CONTROL, OR POWER TO VOTE 25% OR MORE OF THE

4 OUTSTANDING SHARES OF ANY CLASS OF VOTING SECURITY OF THE COM-

5 PANY, DIRECTLY OR INDIRECTLY, OR ACTING THROUGH 1 OR MORE OTHER

6 PERSONS.

7 (ii) CONTROL IN ANY MANNER OVER THE ELECTION OF A MAJORITY

8 OF THE DIRECTORS, TRUSTEES, OR GENERAL PARTNERS OR INDIVIDUALS

9 EXERCISING SIMILAR FUNCTIONS OF THE COMPANY.

10 (iii) THE POWER TO EXERCISE, DIRECTLY OR INDIRECTLY, A CON-

11 TROLLING INFLUENCE OVER THE MANAGEMENT OR POLICIES OF THE COM-

12 PANY, AS THE COMMISSIONER DETERMINES.

13 (I) "CUSTOMER" MEANS A CONSUMER WHO HAS A CUSTOMER RELATION-

14 SHIP WITH A LICENSEE. CUSTOMER DOES NOT INCLUDE A THIRD PARTY

15 CONSUMER SOLELY BY VIRTUE OF HIS OR HER STATUS AS A THIRD PARTY

16 CONSUMER.

17 (J) "CUSTOMER RELATIONSHIP" MEANS A CONTINUING RELATIONSHIP

18 BETWEEN A CONSUMER AND A LICENSEE UNDER WHICH THE LICENSEE PRO-

19 VIDES 1 OR MORE INSURANCE PRODUCTS OR SERVICES TO THE CONSUMER

20 THAT ARE TO BE USED PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD

21 PURPOSES.

22 (K) "INITIAL NOTICE" MEANS THE PRIVACY NOTICE REQUIRED IN

23 SECTION 507.

24 (l) "INSURANCE PRODUCT OR SERVICE" MEANS ANY PRODUCT OR

25 SERVICE THAT IS OFFERED BY A LICENSEE PURSUANT TO THE INSURANCE

26 LAWS OF THIS STATE. INSURANCE SERVICE INCLUDES A LICENSEE'S

27 EVALUATION, BROKERAGE, OR DISTRIBUTION OF INFORMATION THAT THE

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1 LICENSEE COLLECTS IN CONNECTION WITH A REQUEST OR AN APPLICATION

2 FROM A CONSUMER FOR AN INSURANCE PRODUCT OR SERVICE.

3 (M) "LICENSEE" MEANS A LICENSED INSURER OR PRODUCER, AND

4 OTHER PERSONS LICENSED OR REQUIRED TO BE LICENSED, AUTHORIZED OR

5 REQUIRED TO BE AUTHORIZED, REGISTERED OR REQUIRED TO BE REGIS-

6 TERED, OR HOLDING OR REQUIRED TO HOLD A CERTIFICATE OF AUTHORITY

7 UNDER THIS ACT. LICENSEE INCLUDES A NONPROFIT HEALTH CARE CORPO-

8 RATION OPERATING PURSUANT TO THE NONPROFIT HEALTH CARE CORPORA-

9 TION REFORM ACT, 1980 PA 350, MCL 550.1101 TO 550.1704. LICENSEE

10 INCLUDES AN UNAUTHORIZED INSURER WHO PLACES BUSINESS THROUGH A

11 LICENSED SURPLUS LINE AGENT OR BROKER IN THIS STATE, BUT ONLY FOR

12 THE SURPLUS LINE PLACEMENTS PLACED UNDER CHAPTER 19.

13 (N) "NONAFFILIATED THIRD PARTY" MEANS ANY PERSON EXCEPT A

14 LICENSEE'S AFFILIATE OR A PERSON EMPLOYED JOINTLY BY A LICENSEE

15 AND ANY COMPANY THAT IS NOT THE LICENSEE'S AFFILIATE.

16 NONAFFILIATED THIRD PARTY INCLUDES THE OTHER COMPANY THAT JOINTLY

17 EMPLOYS A PERSON WITH A LICENSEE. NONAFFILIATED THIRD PARTY ALSO

18 INCLUDES ANY COMPANY THAT IS AN AFFILIATE SOLELY BY VIRTUE OF THE

19 DIRECT OR INDIRECT OWNERSHIP OR CONTROL OF THE COMPANY BY THE

20 LICENSEE OR ITS AFFILIATE IN CONDUCTING MERCHANT BANKING OR

21 INVESTMENT BANKING ACTIVITIES OF THE TYPE DESCRIBED IN SECTION

22 4(k)(4)(H) OF THE BANK HOLDING COMPANY ACT OF 1956, CHAPTER 240,

23 70 STAT. 135, 12 U.S.C. 1843, OR INSURANCE COMPANY INVESTMENT

24 ACTIVITIES OF THE TYPE DESCRIBED IN SECTION 4(k)(4)(I) OF THE

25 BANK HOLDING COMPANY ACT OF 1956, CHAPTER 240, 70 STAT. 135, 12

26 U.S.C. 1843.

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1 (O) "NONPUBLIC PERSONAL FINANCIAL INFORMATION" MEANS

2 PERSONALLY IDENTIFIABLE FINANCIAL INFORMATION AND ANY LIST,

3 DESCRIPTION, OR OTHER GROUPING OF CONSUMERS AND PUBLICLY AVAIL-

4 ABLE INFORMATION PERTAINING TO THEM THAT IS DERIVED USING ANY

5 PERSONALLY IDENTIFIABLE FINANCIAL INFORMATION THAT IS NOT PUB-

6 LICLY AVAILABLE. NONPUBLIC PERSONAL FINANCIAL INFORMATION DOES

7 NOT INCLUDE ANY OF THE FOLLOWING:

8 (i) HEALTH INFORMATION.

9 (ii) PUBLICLY AVAILABLE INFORMATION.

10 (iii) ANY LIST, DESCRIPTION, OR OTHER GROUPING OF CONSUMERS

11 AND PUBLICLY AVAILABLE INFORMATION PERTAINING TO THEM THAT IS

12 DERIVED WITHOUT USING ANY PERSONALLY IDENTIFIABLE FINANCIAL

13 INFORMATION THAT IS NOT PUBLICLY AVAILABLE.

14 (P) "OPT OUT" MEANS A DIRECTION BY THE CONSUMER THAT THE

15 LICENSEE NOT DISCLOSE NONPUBLIC PERSONAL FINANCIAL INFORMATION

16 ABOUT THAT CONSUMER TO A NONAFFILIATED THIRD PARTY, OTHER THAN AS

17 PERMITTED BY SECTIONS 535, 537, AND 539.

18 (Q) "PERSONALLY IDENTIFIABLE FINANCIAL INFORMATION" MEANS

19 ANY OF THE FOLLOWING:

20 (i) INFORMATION A CONSUMER PROVIDES TO A LICENSEE TO OBTAIN

21 AN INSURANCE PRODUCT OR SERVICE FROM THE LICENSEE.

22 (ii) INFORMATION ABOUT A CONSUMER RESULTING FROM ANY TRANS-

23 ACTION INVOLVING AN INSURANCE PRODUCT OR SERVICE BETWEEN A

24 LICENSEE AND A CONSUMER.

25 (iii) INFORMATION THE LICENSEE OTHERWISE OBTAINS ABOUT A

26 CONSUMER IN CONNECTION WITH PROVIDING AN INSURANCE PRODUCT OR

27 SERVICE TO THAT CONSUMER.

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1 (R) "PRODUCER" MEANS A PERSON REQUIRED TO BE LICENSED UNDER

2 THIS ACT TO SELL, SOLICIT, OR NEGOTIATE INSURANCE.

3 (S) "PUBLICLY AVAILABLE INFORMATION" MEANS ANY INFORMATION

4 THAT A LICENSEE HAS A REASONABLE BASIS TO BELIEVE IS LAWFULLY

5 MADE AVAILABLE TO THE GENERAL PUBLIC FROM FEDERAL, STATE, OR

6 LOCAL GOVERNMENT RECORDS BY WIDE DISTRIBUTION BY THE MEDIA OR BY

7 DISCLOSURES TO THE GENERAL PUBLIC THAT ARE REQUIRED TO BE MADE BY

8 FEDERAL, STATE, OR LOCAL LAW. A LICENSEE HAS A REASONABLE BASIS

9 TO BELIEVE THAT INFORMATION IS LAWFULLY MADE AVAILABLE TO THE

10 GENERAL PUBLIC IF BOTH OF THE FOLLOWING APPLY:

11 (i) THE LICENSEE HAS TAKEN STEPS TO DETERMINE THAT THE

12 INFORMATION IS OF THE TYPE THAT IS AVAILABLE TO THE GENERAL

13 PUBLIC.

14 (ii) IF AN INDIVIDUAL CAN DIRECT THAT THE INFORMATION NOT BE

15 MADE AVAILABLE TO THE GENERAL PUBLIC, THAT THE LICENSEE'S CON-

16 SUMER HAS NOT DIRECTED THAT THE INFORMATION NOT BE MADE AVAILABLE

17 TO THE GENERAL PUBLIC.

18 (T) "REVISED NOTICE" MEANS THE PRIVACY NOTICE REQUIRED IN

19 SECTION 525.

20 SEC. 505. (1) A LICENSEE THAT IS A PRODUCER IS SUBJECT TO

21 ALL THE REQUIREMENTS OF THIS CHAPTER, EXCEPT AS FOLLOWS:

22 (A) IF THE PRODUCER IS EMPLOYED BY A LICENSEE AS A COMMON

23 LAW EMPLOYEE OR A STATUTORY EMPLOYEE AS DEFINED UNDER SECTION

24 3121 OF THE FEDERAL INSURANCE CONTRIBUTIONS ACT, SUBCHAPTER C OF

25 CHAPTER 21 OF SUBTITLE C OF THE INTERNAL REVENUE CODE OF 1986, 26

26 U.S.C. 3121.

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1 (B) IF THE PRODUCER DISCLOSES NONPUBLIC PERSONAL FINANCIAL

2 INFORMATION ON BEHALF OF OR AT THE DIRECTION OF A LICENSEE.

3 (2) A LICENSEE IS NOT REQUIRED TO PROVIDE THE NOTICE AND OPT

4 OUT REQUIREMENTS FOR NONPUBLIC PERSONAL FINANCIAL INFORMATION

5 UNDER THIS CHAPTER IF THE LICENSEE IS AN EMPLOYEE, AGENT, OR

6 OTHER REPRESENTATIVE OF A PRINCIPAL AND ALL OF THE FOLLOWING ARE

7 MET:

8 (A) THE PRINCIPAL IS ANOTHER LICENSEE.

9 (B) THE PRINCIPAL OTHERWISE COMPLIES WITH AND PROVIDES THE

10 NOTICES REQUIRED BY THIS CHAPTER.

11 (C) THE LICENSEE DOES NOT DISCLOSE ANY NONPUBLIC PERSONAL

12 INFORMATION TO ANY PERSON OTHER THAN THE PRINCIPAL OR ITS AFFILI-

13 ATES AS PROVIDED IN THIS CHAPTER.

14 (3) A SURPLUS LINES BROKER OR SURPLUS LINES INSURER IS CON-

15 SIDERED TO BE IN COMPLIANCE WITH THE NOTICE AND OPT OUT REQUIRE-

16 MENTS FOR NONPUBLIC PERSONAL FINANCIAL INFORMATION UNDER THIS

17 CHAPTER IF ALL OF THE FOLLOWING ARE MET:

18 (A) THE BROKER OR INSURER DOES NOT DISCLOSE NONPUBLIC PER-

19 SONAL INFORMATION OF A CONSUMER OR A CUSTOMER TO NONAFFILIATED

20 THIRD PARTIES FOR ANY PURPOSE, INCLUDING JOINT SERVICING OR MAR-

21 KETING UNDER SECTION 535, EXCEPT AS PERMITTED BY SECTION 537 OR

22 539.

23 (B) THE BROKER OR INSURER DELIVERS A NOTICE TO THE CONSUMER

24 AT THE TIME A CUSTOMER RELATIONSHIP IS ESTABLISHED ON WHICH THE

25 FOLLOWING IS PRINTED IN 16-POINT TYPE:

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1 PRIVACY NOTICE

2 "NEITHER THE U.S. BROKERS THAT HANDLED THIS INSURANCE NOR

3 THE INSURERS THAT HAVE UNDERWRITTEN THIS INSURANCE WILL DISCLOSE

4 NONPUBLIC PERSONAL INFORMATION CONCERNING THE BUYER TO NONAFFILI-

5 ATES OF THE BROKERS OR INSURERS EXCEPT AS PERMITTED BY LAW.".

6 SEC. 507. (1) BEGINNING JULY 1, 2001, A LICENSEE SHALL PRO-

7 VIDE A CLEAR AND CONSPICUOUS NOTICE THAT ACCURATELY REFLECTS ITS

8 PRIVACY POLICIES AND PRACTICES TO ALL OF THE FOLLOWING:

9 (A) AN INDIVIDUAL WHO ON OR AFTER JULY 1, 2001 BECOMES THE

10 LICENSEE'S CUSTOMER, NOT LATER THAN WHEN THE LICENSEE ESTABLISHES

11 A CUSTOMER RELATIONSHIP, EXCEPT AS PROVIDED IN SECTION 511.

12 (B) AN INDIVIDUAL WHO WAS THE LICENSEE'S CUSTOMER BEFORE

13 JULY 1, 2001, AT THE NEXT REGULARLY SCHEDULED CONTACT WITH THAT

14 CUSTOMER BUT NOT LATER THAN JULY 1, 2002, SO LONG AS THE LICENSEE

15 DOES NOT DISCLOSE ANY NONPUBLIC PERSONAL FINANCIAL INFORMATION,

16 WHICH DISCLOSURE THE CUSTOMER MAY OPT OUT OF UNDER THIS CHAPTER.

17 (C) A CONSUMER, BEFORE THE LICENSEE DISCLOSES ANY NONPUBLIC

18 PERSONAL FINANCIAL INFORMATION ABOUT THE CONSUMER TO ANY NONAF-

19 FILIATED THIRD PARTY, IF THE LICENSEE MAKES SUCH A DISCLOSURE

20 OTHER THAN AS AUTHORIZED BY SECTIONS 537 AND 539.

21 (2) A LICENSEE IS NOT REQUIRED TO PROVIDE AN INITIAL NOTICE

22 TO A CONSUMER UNDER SUBSECTION (1) IF THE LICENSEE MEETS ANY OF

23 THE FOLLOWING:

24 (A) THE LICENSEE DOES NOT DISCLOSE ANY NONPUBLIC PERSONAL

25 FINANCIAL INFORMATION ABOUT THAT CONSUMER TO ANY NONAFFILIATED

26 THIRD PARTY, OTHER THAN AS AUTHORIZED BY SECTIONS 537 AND 539,

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1 AND THE LICENSEE DOES NOT HAVE A CUSTOMER RELATIONSHIP WITH THE

2 CONSUMER.

3 (B) A NOTICE HAS BEEN PROVIDED TO THAT CONSUMER BY AN AFFIL-

4 IATED LICENSEE, AS LONG AS THE NOTICE CLEARLY IDENTIFIES ALL

5 LICENSEES TO WHOM THE NOTICE APPLIES AND IS ACCURATE WITH RESPECT

6 TO THE LICENSEE AND THE OTHER INSTITUTIONS.

7 SEC. 509. (1) A LICENSEE ESTABLISHES A CUSTOMER RELATION-

8 SHIP AT THE TIME THE LICENSEE AND THE CONSUMER ENTER INTO A CON-

9 TINUING RELATIONSHIP. A CONTINUING RELATIONSHIP INCLUDES, BUT IS

10 NOT LIMITED TO, ALL OF THE FOLLOWING:

11 (A) FOR AN INSURER, WHEN THE CONSUMER RECEIVES THE DELIVERY

12 OF AN INSURANCE POLICY OR CONTRACT.

13 (B) FOR A PRODUCER, WHEN THE CONSUMER OBTAINS INSURANCE

14 THROUGH THAT LICENSEE.

15 (C) WHEN THE CONSUMER AGREES TO OBTAIN FINANCIAL, ECONOMIC,

16 OR INVESTMENT ADVISORY SERVICES RELATING TO INSURANCE PRODUCTS OR

17 SERVICES FOR A FEE FROM THE LICENSEE.

18 (2) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, WHEN AN

19 EXISTING CUSTOMER OBTAINS A NEW INSURANCE PRODUCT OR SERVICE FROM

20 A LICENSEE THAT IS TO BE USED PRIMARILY FOR PERSONAL, FAMILY, OR

21 HOUSEHOLD PURPOSES, THE LICENSEE SHALL PROVIDE A REVISED PRIVACY

22 NOTICE THAT MEETS THE REQUIREMENTS OF SECTION 525 AND THAT COVERS

23 THE CUSTOMER'S NEW INSURANCE PRODUCT OR SERVICE. IF THE INITIAL,

24 REVISED, OR ANNUAL NOTICE THAT THE LICENSEE MOST RECENTLY PRO-

25 VIDED TO THAT CUSTOMER UNDER THIS CHAPTER IS ACCURATE WITH

26 RESPECT TO THE NEW INSURANCE PRODUCT OR SERVICE, THE LICENSEE

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1 DOES NOT NEED TO PROVIDE A NEW PRIVACY NOTICE UNDER THIS

2 SUBSECTION.

3 SEC. 511. (1) A LICENSEE MAY PROVIDE THE INITIAL NOTICE

4 WITHIN A REASONABLE TIME AFTER THE LICENSEE ESTABLISHES A CUS-

5 TOMER RELATIONSHIP IF ESTABLISHING THE CUSTOMER RELATIONSHIP IS

6 NOT AT THE CUSTOMER'S ELECTION OR PROVIDING NOTICE NOT LATER THAN

7 WHEN THE LICENSEE ESTABLISHES A CUSTOMER RELATIONSHIP WOULD SUB-

8 STANTIALLY DELAY THE CUSTOMER'S TRANSACTION AND THE CUSTOMER

9 AGREES TO RECEIVE THE NOTICE AT A LATER TIME.

10 (2) WHEN A LICENSEE IS REQUIRED TO DELIVER AN INITIAL NOTICE

11 UNDER THIS SECTION, THE LICENSEE SHALL DELIVER IT ACCORDING TO

12 SECTION 527. IF THE LICENSEE USES A SHORT-FORM INITIAL NOTICE

13 FOR NONCUSTOMERS ACCORDING TO SECTION 517, THE LICENSEE MAY

14 DELIVER ITS PRIVACY NOTICE ACCORDING TO SECTION 517(3).

15 SEC. 513. (1) A LICENSEE SHALL PROVIDE A CLEAR AND CONSPIC-

16 UOUS NOTICE TO CUSTOMERS THAT ACCURATELY REFLECTS ITS PRIVACY

17 POLICIES AND PRACTICES NOT LESS THAN ANNUALLY DURING THE CONTINU-

18 ATION OF THE CUSTOMER RELATIONSHIP. AS USED IN THIS SECTION,

19 "ANNUALLY" MEANS AT LEAST ONCE IN ANY PERIOD OF 12 CONSECUTIVE

20 MONTHS DURING WHICH THAT CUSTOMER RELATIONSHIP EXISTS. A

21 LICENSEE MAY DEFINE THE 12-CONSECUTIVE-MONTH PERIOD, BUT THE

22 LICENSEE SHALL APPLY IT TO THE CUSTOMER ON A CONSISTENT BASIS.

23 (2) A LICENSEE IS NOT REQUIRED TO PROVIDE AN ANNUAL NOTICE

24 UNDER SUBSECTION (1) TO A FORMER CUSTOMER.

25 SEC. 515. (1) THE INITIAL, ANNUAL, AND REVISED NOTICES

26 SHALL INCLUDE EACH OF THE FOLLOWING ITEMS OF INFORMATION, IN

27 ADDITION TO ANY OTHER INFORMATION THE LICENSEE WISHES TO PROVIDE,

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1 THAT APPLY TO THE LICENSEE AND TO THE CONSUMERS TO WHOM THE

2 LICENSEE SENDS ITS PRIVACY NOTICE:

3 (A) THE CATEGORIES OF NONPUBLIC PERSONAL FINANCIAL INFORMA-

4 TION THAT THE LICENSEE COLLECTS.

5 (B) THE CATEGORIES OF NONPUBLIC PERSONAL FINANCIAL INFORMA-

6 TION THAT THE LICENSEE DISCLOSES.

7 (C) THE CATEGORIES OF AFFILIATES AND NONAFFILIATED THIRD

8 PARTIES TO WHOM THE LICENSEE DISCLOSES NONPUBLIC PERSONAL FINAN-

9 CIAL INFORMATION, OTHER THAN THOSE PARTIES TO WHOM THE LICENSEE

10 DISCLOSES INFORMATION UNDER SECTIONS 537 AND 539.

11 (D) THE CATEGORIES OF NONPUBLIC PERSONAL FINANCIAL INFORMA-

12 TION ABOUT THE LICENSEE'S FORMER CUSTOMERS THAT THE LICENSEE DIS-

13 CLOSES AND THE CATEGORIES OF AFFILIATES AND NONAFFILIATED THIRD

14 PARTIES TO WHOM THE LICENSEE DISCLOSES NONPUBLIC PERSONAL FINAN-

15 CIAL INFORMATION ABOUT THE LICENSEE'S FORMER CUSTOMERS, OTHER

16 THAN THOSE PARTIES TO WHOM THE LICENSEE DISCLOSES INFORMATION

17 UNDER SECTIONS 537 AND 539.

18 (E) IF A LICENSEE DISCLOSES NONPUBLIC PERSONAL FINANCIAL

19 INFORMATION TO A NONAFFILIATED THIRD PARTY UNDER SECTION 535 AND

20 NO OTHER EXCEPTION IN SECTION 537 OR 539 APPLIES TO THAT DISCLO-

21 SURE, A SEPARATE DESCRIPTION OF THE CATEGORIES OF INFORMATION THE

22 LICENSEE DISCLOSES AND THE CATEGORIES OF THIRD PARTIES WITH WHOM

23 THE LICENSEE HAS CONTRACTED.

24 (F) AN EXPLANATION OF THE CONSUMER'S RIGHT UNDER SECTION 529

25 TO OPT OUT OF THE DISCLOSURE OF NONPUBLIC PERSONAL FINANCIAL

26 INFORMATION TO NONAFFILIATED THIRD PARTIES, INCLUDING THE METHOD

27 BY WHICH THE CONSUMER MAY EXERCISE THAT RIGHT AT THAT TIME.

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1 (G) ANY DISCLOSURES THAT THE LICENSEE MAKES UNDER SECTION

2 603(d)(2)(A)(iii) OF THE FAIR CREDIT REPORTING ACT, TITLE VI OF

3 THE CONSUMER CREDIT PROTECTION ACT, PUBLIC LAW 90-321, 15

4 U.S.C. 1681a.

5 (H) THE LICENSEE'S POLICIES AND PRACTICES WITH RESPECT TO

6 PROTECTING THE CONFIDENTIALITY AND SECURITY OF NONPUBLIC PERSONAL

7 FINANCIAL INFORMATION.

8 (I) ANY DISCLOSURE THAT THE LICENSEE MAKES UNDER SUBSECTION

9 (2).

10 (2) IF A LICENSEE DISCLOSES NONPUBLIC PERSONAL FINANCIAL

11 INFORMATION AS AUTHORIZED UNDER SECTIONS 537 AND 539, THE

12 LICENSEE IS NOT REQUIRED TO LIST THOSE EXCEPTIONS IN THE INITIAL

13 OR ANNUAL NOTICES. WHEN DESCRIBING THE CATEGORIES OF PARTIES TO

14 WHOM DISCLOSURE IS MADE, THE LICENSEE IS REQUIRED TO STATE ONLY

15 THAT IT MAKES DISCLOSURES TO OTHER AFFILIATED OR NONAFFILIATED

16 THIRD PARTIES, AS APPLICABLE, AS PERMITTED BY LAW.

17 SEC. 517. (1) A LICENSEE MAY SATISFY THE INITIAL NOTICE

18 REQUIREMENTS IN SECTIONS 507 AND 519(3) FOR A CONSUMER WHO IS NOT

19 A CUSTOMER BY PROVIDING A SHORT-FORM INITIAL NOTICE AT THE SAME

20 TIME AS THE LICENSEE DELIVERS AN OPT OUT NOTICE AS REQUIRED IN

21 SECTION 519.

22 (2) A SHORT-FORM INITIAL NOTICE UNDER SUBSECTION (1) SHALL

23 BE CLEAR AND CONSPICUOUS, STATE THAT THE LICENSEE'S PRIVACY

24 NOTICE IS AVAILABLE UPON REQUEST, AND EXPLAIN A REASONABLE MEANS

25 BY WHICH THE CONSUMER MAY OBTAIN THAT NOTICE.

26 (3) THE LICENSEE SHALL DELIVER ITS SHORT-FORM INITIAL NOTICE

27 ACCORDING TO SECTION 527. THE LICENSEE IS NOT REQUIRED TO

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1 DELIVER ITS PRIVACY NOTICE WITH ITS SHORT-FORM INITIAL NOTICE AND

2 MAY PROVIDE THE CONSUMER A REASONABLE MEANS TO OBTAIN ITS PRIVACY

3 NOTICE. IF A CONSUMER WHO RECEIVES THE LICENSEE'S SHORT-FORM

4 NOTICE REQUESTS THE LICENSEE'S PRIVACY NOTICE, THE LICENSEE SHALL

5 DELIVER ITS PRIVACY NOTICE ACCORDING TO SECTION 527.

6 (4) THE LICENSEE'S SHORT-FORM INITIAL NOTICE UNDER SUBSEC-

7 TION (1) MAY INCLUDE CATEGORIES OF NONPUBLIC PERSONAL FINANCIAL

8 INFORMATION THAT THE LICENSEE RESERVES THE RIGHT TO DISCLOSE IN

9 THE FUTURE BUT DOES NOT CURRENTLY DISCLOSE, AND CATEGORIES OF

10 AFFILIATES OR NONAFFILIATED THIRD PARTIES TO WHOM THE LICENSEE

11 RESERVES THE RIGHT IN THE FUTURE TO DISCLOSE BUT TO WHOM THE

12 LICENSEE DOES NOT CURRENTLY DISCLOSE, NONPUBLIC PERSONAL FINAN-

13 CIAL INFORMATION.

14 SEC. 519. (1) IF A LICENSEE IS REQUIRED TO PROVIDE AN OPT

15 OUT NOTICE UNDER SECTION 529, IT SHALL PROVIDE A CLEAR AND CON-

16 SPICUOUS NOTICE TO EACH OF ITS CONSUMERS THAT ACCURATELY EXPLAINS

17 THE RIGHT TO OPT OUT UNDER THAT SECTION. THE NOTICE SHALL STATE

18 ALL OF THE FOLLOWING:

19 (A) THAT THE LICENSEE DISCLOSES OR RESERVES THE RIGHT TO

20 DISCLOSE NONPUBLIC PERSONAL FINANCIAL INFORMATION ABOUT ITS CON-

21 SUMER TO A NONAFFILIATED THIRD PARTY.

22 (B) THAT THE CONSUMER HAS THE RIGHT TO OPT OUT OF THAT

23 DISCLOSURE.

24 (C) A REASONABLE MEANS BY WHICH THE CONSUMER MAY EXERCISE

25 THE OPT OUT RIGHT.

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1 (2) A LICENSEE MAY PROVIDE THE REQUIRED OPT OUT NOTICE

2 TOGETHER WITH OR ON THE SAME WRITTEN OR ELECTRONIC FORM AS THE

3 INITIAL NOTICE.

4 (3) IF A LICENSEE PROVIDES THE OPT OUT NOTICE LATER THAN

5 REQUIRED FOR THE INITIAL NOTICE, THE LICENSEE SHALL ALSO INCLUDE

6 A COPY OF THE INITIAL NOTICE WITH THE OPT OUT NOTICE IN WRITING

7 OR, IF THE CONSUMER AGREES, ELECTRONICALLY.

8 SEC. 521. (1) IF 2 OR MORE CONSUMERS JOINTLY OBTAIN AN

9 INSURANCE PRODUCT OR SERVICE FROM A LICENSEE, THE LICENSEE MAY

10 PROVIDE A SINGLE OPT OUT NOTICE. THE LICENSEE'S OPT OUT NOTICE

11 SHALL EXPLAIN HOW THE LICENSEE WILL TREAT AN OPT OUT DIRECTION BY

12 A JOINT CONSUMER AND MAY EITHER TREAT AN OPT OUT DIRECTION BY A

13 JOINT CONSUMER AS APPLYING TO ALL OF THE ASSOCIATED JOINT CONSUM-

14 ERS OR PERMIT EACH JOINT CONSUMER TO OPT OUT SEPARATELY.

15 (2) IF A LICENSEE PERMITS UNDER SUBSECTION (1) EACH JOINT

16 CONSUMER TO OPT OUT SEPARATELY, THE LICENSEE SHALL PERMIT 1 OF

17 THE JOINT CONSUMERS TO OPT OUT ON BEHALF OF ALL OF THE JOINT

18 CONSUMERS. A LICENSEE MAY NOT REQUIRE ALL JOINT CONSUMERS TO OPT

19 OUT BEFORE IT IMPLEMENTS ANY OPT OUT DIRECTION.

20 SEC. 523. (1) A LICENSEE SHALL COMPLY WITH A CONSUMER'S OPT

21 OUT DIRECTION AS SOON AS REASONABLY PRACTICABLE AFTER THE

22 LICENSEE RECEIVES IT.

23 (2) A CONSUMER MAY EXERCISE THE RIGHT TO OPT OUT AT ANY

24 TIME. A CONSUMER'S DIRECTION TO OPT OUT UNDER THIS SUBSECTION IS

25 EFFECTIVE UNTIL THE CONSUMER REVOKES IT IN WRITING OR, IF THE

26 CONSUMER AGREES, REVOKES IT ELECTRONICALLY.

03083'01

1 (3) IF A CUSTOMER RELATIONSHIP TERMINATES, THE CUSTOMER'S

2 OPT OUT DIRECTION SHALL CONTINUE TO APPLY TO THE NONPUBLIC

3 PERSONAL FINANCIAL INFORMATION THAT THE LICENSEE COLLECTED DURING

4 OR RELATED TO THAT RELATIONSHIP. IF THE INDIVIDUAL SUBSEQUENTLY

5 ESTABLISHES A NEW CUSTOMER RELATIONSHIP WITH THE LICENSEE, THE

6 OPT OUT DIRECTION THAT APPLIED TO THE FORMER RELATIONSHIP DOES

7 NOT APPLY TO THE NEW RELATIONSHIP.

8 SEC. 525. EXCEPT AS OTHERWISE AUTHORIZED IN THIS CHAPTER, A

9 LICENSEE SHALL NOT, DIRECTLY OR THROUGH ANY AFFILIATE, DISCLOSE

10 ANY NONPUBLIC PERSONAL FINANCIAL INFORMATION ABOUT A CONSUMER TO

11 A NONAFFILIATED THIRD PARTY OTHER THAN AS DESCRIBED IN THE INI-

12 TIAL NOTICE UNLESS ALL OF THE FOLLOWING HAVE BEEN MET:

13 (A) THE LICENSEE HAS PROVIDED TO THE CONSUMER A CLEAR AND

14 CONSPICUOUS REVISED NOTICE THAT ACCURATELY DESCRIBES ITS POLICIES

15 AND PRACTICES.

16 (B) THE LICENSEE HAS PROVIDED TO THE CONSUMER A NEW OPT OUT

17 NOTICE.

18 (C) THE LICENSEE HAS GIVEN THE CONSUMER A REASONABLE OPPOR-

19 TUNITY, BEFORE THE LICENSEE DISCLOSES THE INFORMATION TO THE NON-

20 AFFILIATED THIRD PARTY, TO OPT OUT OF THE DISCLOSURE, AND THE

21 CONSUMER DOES NOT OPT OUT.

22 SEC. 527. (1) A LICENSEE SHALL PROVIDE ANY NOTICE REQUIRED

23 UNDER THIS CHAPTER SO THAT EACH CONSUMER CAN REASONABLY BE

24 EXPECTED TO RECEIVE ACTUAL NOTICE IN WRITING OR, IF THE CONSUMER

25 AGREES, ELECTRONICALLY. A LICENSEE MAY REASONABLY EXPECT THAT A

26 CONSUMER WILL RECEIVE ACTUAL NOTICE IF THE LICENSEE DOES ANY OF

27 THE FOLLOWING:

03083'01

1 (A) HAND DELIVERS A PRINTED COPY OF THE NOTICE TO THE

2 CONSUMER.

3 (B) MAILS A PRINTED COPY OF THE NOTICE TO THE LAST KNOWN

4 ADDRESS OF THE CONSUMER SEPARATELY, OR IN A POLICY, BILLING, OR

5 OTHER WRITTEN COMMUNICATION.

6 (C) FOR A CONSUMER WHO CONDUCTS TRANSACTIONS ELECTRONICALLY,

7 POSTS THE NOTICE ON THE ELECTRONIC SITE AND REQUIRES THE CONSUMER

8 TO ACKNOWLEDGE RECEIPT OF THE NOTICE AS A NECESSARY STEP TO

9 OBTAINING A PARTICULAR INSURANCE PRODUCT OR SERVICE.

10 (D) FOR AN ISOLATED TRANSACTION WITH A CONSUMER, SUCH AS THE

11 LICENSEE PROVIDING AN INSURANCE QUOTE OR SELLING THE CONSUMER

12 TRAVEL INSURANCE, POSTS THE NOTICE AND REQUIRES THE CONSUMER TO

13 ACKNOWLEDGE RECEIPT OF THE NOTICE AS A NECESSARY STEP TO OBTAIN-

14 ING THE PARTICULAR INSURANCE PRODUCT OR SERVICE.

15 (2) THE FOLLOWING DO NOT PROVIDE A REASONABLE EXPECTATION

16 THAT A CONSUMER WILL RECEIVE ACTUAL NOTICE OF A LICENSEE'S PRI-

17 VACY POLICIES AND PRACTICES UNDER SUBSECTION (1):

18 (A) THE LICENSEE ONLY POSTS A SIGN IN ITS OFFICE OR GENER-

19 ALLY PUBLISHES ADVERTISEMENTS OF ITS PRIVACY POLICIES AND

20 PRACTICES.

21 (B) THE LICENSEE SENDS THE NOTICE VIA ELECTRONIC MAIL TO A

22 CONSUMER WHO DOES NOT OBTAIN AN INSURANCE PRODUCT OR SERVICE FROM

23 THE LICENSEE ELECTRONICALLY.

24 (3) A LICENSEE MAY REASONABLY EXPECT THAT A CUSTOMER WILL

25 RECEIVE ACTUAL NOTICE OF THE LICENSEE'S ANNUAL NOTICE IN EITHER

26 OF THE FOLLOWING CASES:

03083'01

1 (A) THE CUSTOMER USES THE LICENSEE'S WEBSITE TO ACCESS

2 INSURANCE PRODUCTS AND SERVICES ELECTRONICALLY AND AGREES TO

3 RECEIVE NOTICES AT THE WEBSITE AND THE LICENSEE POSTS ITS CURRENT

4 PRIVACY NOTICE CONTINUOUSLY IN A CLEAR AND CONSPICUOUS MANNER ON

5 THE WEBSITE.

6 (B) THE CUSTOMER HAS REQUESTED THAT THE LICENSEE REFRAIN

7 FROM SENDING ANY INFORMATION REGARDING THE CUSTOMER RELATIONSHIP,

8 AND THE LICENSEE'S CURRENT PRIVACY NOTICE REMAINS AVAILABLE TO

9 THE CUSTOMER UPON REQUEST.

10 (4) A LICENSEE SHALL NOT PROVIDE ANY NOTICE REQUIRED BY THIS

11 CHAPTER SOLELY BY ORALLY EXPLAINING THE NOTICE, EITHER IN PERSON

12 OR OVER THE TELEPHONE.

13 (5) FOR CUSTOMERS ONLY, A LICENSEE SHALL PROVIDE THE INITIAL

14 ANNUAL AND REVISED NOTICES SO THAT THE CUSTOMER CAN RETAIN THEM

15 OR OBTAIN THEM LATER IN WRITING OR, IF THE CUSTOMER AGREES,

16 ELECTRONICALLY. A LICENSEE PROVIDES AN INITIAL, ANNUAL, OR

17 REVISED NOTICE TO THE CUSTOMER SO THAT THE CUSTOMER CAN RETAIN IT

18 OR OBTAIN IT LATER IF THE LICENSEE DOES ANY OF THE FOLLOWING:

19 (A) HAND DELIVERS A PRINTED COPY OF THE NOTICE TO THE

20 CUSTOMER.

21 (B) MAILS A PRINTED COPY OF THE NOTICE TO THE LAST KNOWN

22 ADDRESS OF THE CUSTOMER.

23 (C) MAKES THE CURRENT INITIAL, ANNUAL, OR REVISED NOTICE

24 AVAILABLE ON A WEBSITE OR A LINK TO ANOTHER WEBSITE FOR THE CUS-

25 TOMER WHO OBTAINS AN INSURANCE PRODUCT OR SERVICE ELECTRONICALLY

26 AND AGREES TO RECEIVE THE NOTICE AT THE WEBSITE.

03083'01

1 (6) A LICENSEE MAY PROVIDE A JOINT NOTICE FROM THE LICENSEE

2 AND 1 OR MORE OF ITS AFFILIATES OR OTHER FINANCIAL INSTITUTIONS,

3 AS IDENTIFIED IN THE NOTICE, IF THE NOTICE IS ACCURATE WITH

4 RESPECT TO THE LICENSEE AND THE OTHER INSTITUTIONS. A LICENSEE

5 MAY ALSO PROVIDE A NOTICE ON BEHALF OF ANOTHER FINANCIAL INSTITU-

6 TION, AS IDENTIFIED IN THE NOTICE, IF THE NOTICE IS ACCURATE WITH

7 RESPECT TO THE LICENSEE AND THE OTHER INSTITUTION.

8 (7) IF 2 OR MORE CONSUMERS JOINTLY OBTAIN AN INSURANCE PRO-

9 DUCT OR SERVICE FROM A LICENSEE, THE LICENSEE MAY SATISFY THE

10 INITIAL, ANNUAL, AND REVISED NOTICE REQUIREMENTS BY PROVIDING 1

11 NOTICE TO THOSE CONSUMERS JOINTLY.

12 SEC. 529. (1) EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER,

13 A LICENSEE SHALL NOT, DIRECTLY OR THROUGH ANY AFFILIATE, DISCLOSE

14 ANY NONPUBLIC PERSONAL FINANCIAL INFORMATION ABOUT A CONSUMER TO

15 A NONAFFILIATED THIRD PARTY UNLESS ALL OF THE FOLLOWING ARE MET:

16 (A) THE LICENSEE HAS PROVIDED TO THE CONSUMER AN INITIAL

17 NOTICE.

18 (B) THE LICENSEE HAS PROVIDED TO THE CONSUMER AN OPT OUT

19 NOTICE AS REQUIRED IN SECTION 519.

20 (C) THE LICENSEE HAS GIVEN THE CONSUMER A REASONABLE OPPOR-

21 TUNITY, BEFORE IT DISCLOSES THE INFORMATION TO THE NONAFFILIATED

22 THIRD PARTY, TO OPT OUT OF THE DISCLOSURE AND THE CONSUMER DOES

23 NOT OPT OUT.

24 (2) A LICENSEE PROVIDES A CONSUMER WITH A REASONABLE OPPOR-

25 TUNITY TO OPT OUT UNDER SUBSECTION (1) IN ANY OF THE FOLLOWING

26 WAYS:

03083'01

1 (A) IF THE LICENSEE MAILS THE NOTICES REQUIRED IN SUBSECTION

2 (1) TO THE CONSUMER AND ALLOWS THE CONSUMER TO OPT OUT BY MAILING

3 A FORM, CALLING A TOLL-FREE TELEPHONE NUMBER, OR ANY OTHER REA-

4 SONABLE MEANS WITHIN 45 DAYS FROM THE DATE THE LICENSEE MAILED

5 THE NOTICES.

6 (B) A CUSTOMER OPENS AN ON-LINE ACCOUNT WITH A LICENSEE AND

7 AGREES TO RECEIVE THE NOTICES REQUIRED IN SUBSECTION (1) ELEC-

8 TRONICALLY, AND THE LICENSEE ALLOWS THE CUSTOMER TO OPT OUT BY

9 ANY REASONABLE MEANS WITHIN 45 DAYS AFTER THE DATE THAT THE CUS-

10 TOMER ACKNOWLEDGES RECEIPT OF THE NOTICES IN CONJUNCTION WITH

11 OPENING THE ACCOUNT.

12 (C) FOR AN ISOLATED TRANSACTION SUCH AS PROVIDING THE CON-

13 SUMER WITH AN INSURANCE QUOTE, IF THE LICENSEE PROVIDES THE

14 NOTICES REQUIRED IN SUBSECTION (1) AT THE TIME OF THE TRANSACTION

15 AND REQUESTS THAT THE CONSUMER DECIDE, AS A NECESSARY PART OF THE

16 TRANSACTION, WHETHER TO OPT OUT BEFORE COMPLETING THE

17 TRANSACTION.

18 (3) THIS SECTION APPLIES TO A LICENSEE WHETHER OR NOT THE

19 LICENSEE AND THE CONSUMER HAVE ESTABLISHED A CUSTOMER

20 RELATIONSHIP.

21 (4) UNLESS A LICENSEE COMPLIES WITH THIS SECTION, THE

22 LICENSEE SHALL NOT, DIRECTLY OR THROUGH ANY AFFILIATE, DISCLOSE

23 ANY NONPUBLIC PERSONAL FINANCIAL INFORMATION ABOUT A CONSUMER

24 THAT THE LICENSEE HAS COLLECTED, REGARDLESS OF WHETHER THE

25 LICENSEE COLLECTED IT BEFORE OR AFTER RECEIVING THE DIRECTION TO

26 OPT OUT FROM THE CONSUMER.

03083'01

1 (5) A LICENSEE MAY ALLOW A CONSUMER TO SELECT CERTAIN

2 NONPUBLIC PERSONAL FINANCIAL INFORMATION OR CERTAIN NONAFFILIATED

3 THIRD PARTIES WITH RESPECT TO WHICH THE CONSUMER WISHES TO OPT

4 OUT.

5 SEC. 531. (1) IF A LICENSEE RECEIVES NONPUBLIC PERSONAL

6 FINANCIAL INFORMATION FROM A NONAFFILIATED FINANCIAL INSTITUTION

7 UNDER AN EXCEPTION IN SECTION 537 OR 539, THE LICENSEE'S DISCLO-

8 SURE AND USE OF THAT INFORMATION IS LIMITED AS FOLLOWS:

9 (A) THE LICENSEE MAY DISCLOSE THE INFORMATION TO THE AFFILI-

10 ATES OF THE FINANCIAL INSTITUTION FROM WHICH THE LICENSEE

11 RECEIVED THE INFORMATION.

12 (B) THE LICENSEE MAY DISCLOSE THE INFORMATION TO ITS AFFILI-

13 ATES, BUT THE LICENSEE'S AFFILIATES MAY, IN TURN, DISCLOSE AND

14 USE THE INFORMATION ONLY TO THE EXTENT THAT THE LICENSEE MAY DIS-

15 CLOSE AND USE THE INFORMATION.

16 (C) THE LICENSEE MAY DISCLOSE AND USE THE INFORMATION PURSU-

17 ANT TO AN EXCEPTION IN SECTION 537 OR 539 IN THE ORDINARY COURSE

18 OF BUSINESS TO CARRY OUT THE ACTIVITY COVERED BY THE EXCEPTION

19 UNDER WHICH THE LICENSEE RECEIVED THE INFORMATION.

20 (2) IF A LICENSEE RECEIVES NONPUBLIC PERSONAL FINANCIAL

21 INFORMATION FROM A NONAFFILIATED FINANCIAL INSTITUTION OTHER THAN

22 UNDER AN EXCEPTION IN SECTION 537 OR 539, THE LICENSEE MAY DIS-

23 CLOSE THE INFORMATION ONLY AS FOLLOWS:

24 (A) TO THE AFFILIATES OF THE FINANCIAL INSTITUTION FROM

25 WHICH THE LICENSEE RECEIVED THE INFORMATION.

03083'01

1 (B) TO ITS AFFILIATES, BUT ITS AFFILIATES MAY, IN TURN,

2 DISCLOSE THE INFORMATION ONLY TO THE EXTENT THAT THE LICENSEE MAY

3 DISCLOSE THE INFORMATION.

4 (C) TO ANY OTHER PERSON, IF THE DISCLOSURE WOULD BE LAWFUL

5 IF MADE DIRECTLY TO THAT PERSON BY THE FINANCIAL INSTITUTION FROM

6 WHICH THE LICENSEE RECEIVED THE INFORMATION.

7 (3) IF A LICENSEE DISCLOSES NONPUBLIC PERSONAL FINANCIAL

8 INFORMATION TO A NONAFFILIATED THIRD PARTY UNDER AN EXCEPTION IN

9 SECTION 537 OR 539, THE THIRD PARTY MAY DISCLOSE AND USE THAT

10 INFORMATION ONLY AS FOLLOWS:

11 (A) TO THE LICENSEE'S AFFILIATES.

12 (B) TO ITS AFFILIATES, BUT ITS AFFILIATES MAY, IN TURN, DIS-

13 CLOSE AND USE THE INFORMATION ONLY TO THE EXTENT THAT THE THIRD

14 PARTY MAY DISCLOSE AND USE THE INFORMATION.

15 (C) PURSUANT TO AN EXCEPTION IN SECTION 537 OR 539 IN THE

16 ORDINARY COURSE OF BUSINESS TO CARRY OUT THE ACTIVITY COVERED BY

17 THE EXCEPTION UNDER WHICH IT RECEIVED THE INFORMATION.

18 (4) IF A LICENSEE DISCLOSES NONPUBLIC PERSONAL FINANCIAL

19 INFORMATION TO A NONAFFILIATED THIRD PARTY OTHER THAN UNDER AN

20 EXCEPTION IN SECTION 537 OR 539, THE THIRD PARTY MAY DISCLOSE THE

21 INFORMATION ONLY AS FOLLOWS:

22 (A) TO THE LICENSEE'S AFFILIATES.

23 (B) TO THE THIRD PARTY'S AFFILIATES, BUT THE THIRD PARTY'S

24 AFFILIATES MAY, IN TURN, DISCLOSE THE INFORMATION ONLY TO THE

25 EXTENT THE THIRD PARTY CAN DISCLOSE THE INFORMATION.

26 (C) TO ANY OTHER PERSON, IF THE DISCLOSURE WOULD BE LAWFUL

27 IF THE LICENSEE MADE IT DIRECTLY TO THAT PERSON.

03083'01

1 SEC. 533. (1) A LICENSEE SHALL NOT, DIRECTLY OR THROUGH AN

2 AFFILIATE, DISCLOSE, OTHER THAN TO A CONSUMER REPORTING AGENCY, A

3 POLICY OR ACCOUNT NUMBER OR OTHER ACCESS NUMBER OR ACCESS CODE

4 FOR A CONSUMER'S POLICY, CREDIT CARD ACCOUNT, DEPOSIT ACCOUNT, OR

5 TRANSACTION ACCOUNT TO ANY NONAFFILIATED THIRD PARTY FOR USE IN

6 TELEMARKETING, DIRECT MAIL MARKETING, OR OTHER MARKETING THROUGH

7 ELECTRONIC MAIL TO THE CONSUMER.

8 (2) SUBSECTION (1) DOES NOT APPLY IF A LICENSEE DISCLOSES A

9 POLICY OR ACCOUNT NUMBER OR OTHER ACCESS NUMBER OR ACCESS CODE AS

10 FOLLOWS:

11 (A) TO THE LICENSEE'S SERVICE PROVIDER SOLELY IN ORDER TO

12 PERFORM MARKETING FOR THE LICENSEE'S OWN PRODUCTS OR SERVICES, AS

13 LONG AS THE SERVICE PROVIDER IS NOT AUTHORIZED TO DIRECTLY INITI-

14 ATE CHARGES TO THE ACCOUNT.

15 (B) TO A LICENSEE WHO IS A PRODUCER SOLELY IN ORDER TO PER-

16 FORM MARKETING FOR THE LICENSEE'S OWN PRODUCTS OR SERVICES.

17 (C) TO A PARTICIPANT IN AN AFFINITY OR SIMILAR PROGRAM WHERE

18 THE PARTICIPANTS IN THE PROGRAM ARE IDENTIFIED TO THE CUSTOMER

19 WHEN THE CUSTOMER ENTERS INTO THE PROGRAM.

20 (3) SUBSECTIONS (1) AND (2) DO NOT APPLY IF THE POLICY OR

21 ACCOUNT NUMBER, OR OTHER ACCESS NUMBER OR ACCESS CODE, DOES NOT

22 INCLUDE A NUMBER OR CODE IN AN ENCRYPTED FORM, AS LONG AS THE

23 LICENSEE DOES NOT PROVIDE THE RECIPIENT WITH A MEANS TO DECODE

24 THE NUMBER OR CODE.

25 (4) AS USED IN THIS SECTION, "TRANSACTION ACCOUNT" MEANS AN

26 ACCOUNT OTHER THAN A DEPOSIT ACCOUNT OR A CREDIT CARD ACCOUNT. A

03083'01

1 TRANSACTION ACCOUNT DOES NOT INCLUDE AN ACCOUNT TO WHICH THIRD

2 PARTIES CANNOT INITIATE CHARGES.

3 SEC. 535. (1) THE OPT OUT REQUIREMENTS IN SECTIONS 519 AND

4 529 DO NOT APPLY WHEN A LICENSEE PROVIDES NONPUBLIC PERSONAL

5 FINANCIAL INFORMATION TO A NONAFFILIATED THIRD PARTY TO PERFORM

6 SERVICES FOR THE LICENSEE OR FUNCTIONS ON THE LICENSEE'S BEHALF,

7 IF THE LICENSEE DOES BOTH OF THE FOLLOWING:

8 (A) PROVIDES THE INITIAL NOTICE.

9 (B) ENTERS INTO A CONTRACTUAL AGREEMENT WITH THE THIRD PARTY

10 THAT PROHIBITS THE THIRD PARTY FROM DISCLOSING OR USING THE

11 INFORMATION OTHER THAN TO CARRY OUT THE PURPOSES FOR WHICH THE

12 LICENSEE DISCLOSED THE INFORMATION, INCLUDING USE UNDER AN EXCEP-

13 TION IN SECTION 537 OR 539 IN THE ORDINARY COURSE OF BUSINESS TO

14 CARRY OUT THOSE PURPOSES.

15 (2) THE SERVICES A NONAFFILIATED THIRD PARTY PERFORMS FOR A

16 LICENSEE UNDER SUBSECTION (1) MAY INCLUDE MARKETING OF THE

17 LICENSEE'S OWN PRODUCTS OR SERVICES OR MARKETING OF INSURANCE

18 PRODUCTS OR SERVICES OFFERED PURSUANT TO JOINT AGREEMENTS BETWEEN

19 THE LICENSEE AND 1 OR MORE FINANCIAL INSTITUTIONS.

20 (3) AS USED IN THIS SECTION, "JOINT AGREEMENT" MEANS A WRIT-

21 TEN CONTRACT PURSUANT TO WHICH A LICENSEE AND 1 OR MORE FINANCIAL

22 INSTITUTIONS JOINTLY OFFER, ENDORSE, OR SPONSOR A FINANCIAL PRO-

23 DUCT OR SERVICE.

24 SEC. 537. (1) SECTIONS 507(1)(C), 519, 529, AND 535 DO NOT

25 APPLY IF THE LICENSEE DISCLOSES NONPUBLIC PERSONAL FINANCIAL

26 INFORMATION AS NECESSARY TO EFFECT, ADMINISTER, OR ENFORCE A

03083'01

1 TRANSACTION THAT A CONSUMER REQUESTS OR AUTHORIZES, OR IN

2 CONNECTION WITH ANY OF THE FOLLOWING:

3 (A) SERVICING OR PROCESSING AN INSURANCE PRODUCT OR SERVICE

4 THAT A CONSUMER REQUESTS OR AUTHORIZES.

5 (B) MAINTAINING OR SERVICING THE CONSUMER'S ACCOUNT WITH A

6 LICENSEE, OR WITH ANOTHER ENTITY AS PART OF A PRIVATE LABEL

7 CREDIT CARD PROGRAM OR OTHER EXTENSION OF CREDIT ON BEHALF OF

8 THAT ENTITY.

9 (C) A PROPOSED OR ACTUAL SECURITIZATION, SECONDARY MARKET

10 SALE INCLUDING SALES OF SERVICING RIGHTS, OR SIMILAR TRANSACTION

11 RELATED TO A TRANSACTION OF THE CONSUMER.

12 (D) REINSURANCE OR STOP LOSS OR EXCESS LOSS INSURANCE.

13 (2) AS USED IN SUBSECTION (1), "NECESSARY TO EFFECT, ADMIN-

14 ISTER, OR ENFORCE A TRANSACTION" MEANS THAT THE DISCLOSURE IS

15 EITHER OF THE FOLLOWING:

16 (A) REQUIRED OR IS 1 OF THE LAWFUL OR APPROPRIATE METHODS TO

17 ENFORCE THE LICENSEE'S RIGHTS OR THE RIGHTS OF OTHER PERSONS

18 ENGAGED IN CARRYING OUT THE FINANCIAL TRANSACTION OR PROVIDING

19 THE PRODUCT OR SERVICE.

20 (B) REQUIRED OR IS A USUAL, APPROPRIATE, OR ACCEPTABLE

21 METHOD FOR ANY OF THE FOLLOWING:

22 (i) TO CARRY OUT THE TRANSACTION OR THE PRODUCT OR SERVICE

23 BUSINESS OF WHICH THE TRANSACTION IS A PART, AND RECORD, SERVICE,

24 OR MAINTAIN THE CONSUMER'S ACCOUNT IN THE ORDINARY COURSE OF PRO-

25 VIDING THE INSURANCE PRODUCT OR SERVICE.

03083'01

1 (ii) TO ADMINISTER OR SERVICE BENEFITS OR CLAIMS RELATING TO

2 THE TRANSACTION OR THE PRODUCT OR SERVICE BUSINESS OF WHICH IT IS

3 A PART.

4 (iii) TO PROVIDE A CONFIRMATION, STATEMENT, OR OTHER RECORD

5 OF THE TRANSACTION, OR INFORMATION ON THE STATUS OR VALUE OF THE

6 INSURANCE PRODUCT OR SERVICE TO THE CONSUMER OR THE CONSUMER'S

7 AGENT OR BROKER.

8 (iv) TO ACCRUE OR RECOGNIZE INCENTIVES OR BONUSES ASSOCIATED

9 WITH THE TRANSACTION THAT ARE PROVIDED BY A LICENSEE OR ANY OTHER

10 PARTY.

11 (v) TO UNDERWRITE INSURANCE AT THE CONSUMER'S REQUEST OR FOR

12 ANY OF THE FOLLOWING PURPOSES AS THEY RELATE TO A CONSUMER'S

13 INSURANCE: ACCOUNT ADMINISTRATION, REPORTING, INVESTIGATING, OR

14 PREVENTING FRAUD OR MATERIAL MISREPRESENTATION, PROCESSING PRE-

15 MIUM PAYMENTS, PROCESSING INSURANCE CLAIMS, ADMINISTERING INSUR-

16 ANCE BENEFITS INCLUDING UTILIZATION REVIEW ACTIVITIES, PARTICI-

17 PATING IN RESEARCH PROJECTS, OR AS OTHERWISE REQUIRED OR SPECIFI-

18 CALLY PERMITTED BY FEDERAL OR STATE LAW.

19 (vi) IN CONNECTION WITH ANY OF THE FOLLOWING:

20 (A) THE AUTHORIZATION, SETTLEMENT, BILLING, PROCESSING,

21 CLEARING, TRANSFERRING, RECONCILING, OR COLLECTION OF AMOUNTS

22 CHARGED, DEBITED, OR OTHERWISE PAID USING A DEBIT, CREDIT, OR

23 OTHER PAYMENT CARD, CHECK, OR ACCOUNT NUMBER, OR BY OTHER PAYMENT

24 MEANS.

25 (B) THE TRANSFER OF RECEIVABLES, ACCOUNTS, OR INTERESTS IN

26 RECEIVABLES OR ACCOUNTS.

03083'01

1 (C) THE AUDIT OF DEBIT, CREDIT, OR OTHER PAYMENT

2 INFORMATION.

3 SEC. 539. SECTIONS 507(1)(C), 519, 529, AND 535 DO NOT

4 APPLY WHEN A LICENSEE DISCLOSES NONPUBLIC PERSONAL FINANCIAL

5 INFORMATION AS FOLLOWS:

6 (A) WITH THE CONSENT OR AT THE DIRECTION OF THE CONSUMER,

7 PROVIDED THAT THE CONSUMER HAS NOT REVOKED THE CONSENT OR

8 DIRECTION.

9 (B) TO PROTECT THE CONFIDENTIALITY OR SECURITY OF A

10 LICENSEE'S RECORDS PERTAINING TO THE CONSUMER, SERVICE, PRODUCT,

11 OR TRANSACTION.

12 (C) TO PROTECT AGAINST OR PREVENT ACTUAL OR POTENTIAL FRAUD

13 OR UNAUTHORIZED TRANSACTIONS.

14 (D) FOR REQUIRED INSTITUTIONAL RISK CONTROL OR FOR RESOLVING

15 CONSUMER DISPUTES OR INQUIRIES.

16 (E) TO PERSONS HOLDING A LEGAL OR BENEFICIAL INTEREST RELAT-

17 ING TO THE CONSUMER.

18 (F) TO PERSONS ACTING IN A FIDUCIARY OR REPRESENTATIVE

19 CAPACITY ON BEHALF OF THE CONSUMER.

20 (G) TO PROVIDE INFORMATION TO INSURANCE RATE ADVISORY ORGAN-

21 IZATIONS, GUARANTY FUNDS OR AGENCIES, AGENCIES THAT ARE RATING A

22 LICENSEE, PERSONS THAT ARE ASSESSING THE LICENSEE'S COMPLIANCE

23 WITH INDUSTRY STANDARDS, OR THE LICENSEE'S ATTORNEYS, ACCOUN-

24 TANTS, AND AUDITORS.

25 (H) TO THE EXTENT SPECIFICALLY PERMITTED OR REQUIRED UNDER

26 OTHER PROVISIONS OF LAW AND IN ACCORDANCE WITH THE RIGHT TO

27 PRIVACY ACT OF 1978, TITLE XI OF THE FINANCIAL INSTITUTIONS

03083'01

1 REGULATORY AND INTEREST RATE CONTROL ACT OF 1978, PUBLIC LAW

2 95-630, 12 U.S.C. 3401 TO 3420 AND 3422, TO LAW ENFORCEMENT AGEN-

3 CIES INCLUDING THE FEDERAL RESERVE BOARD, OFFICE OF THE COMPTROL-

4 LER OF THE CURRENCY, FEDERAL DEPOSIT INSURANCE CORPORATION,

5 OFFICE OF THRIFT SUPERVISION, NATIONAL CREDIT UNION ADMINISTRA-

6 TION, THE SECURITIES AND EXCHANGE COMMISSION, THE SECRETARY OF

7 THE TREASURY, WITH RESPECT TO SUBCHAPTER II OF CHAPTER 53 OF SUB-

8 TITLE IV OF TITLE 31 OF THE UNITED STATES CODE, 31 U.S.C. 5311

9 AND 5330, AND SECTIONS 121 TO 129 OF CHAPTER 2 OF TITLE I OF

10 PUBLIC LAW 91-508, 12 U.S.C. 1951 TO 1959, THE FEDERAL TRADE COM-

11 MISSION, A STATE INSURANCE AUTHORITY, SELF-REGULATORY ORGANIZA-

12 TIONS, OR FOR AN INVESTIGATION ON A MATTER RELATED TO PUBLIC

13 SAFETY.

14 (I) TO A CONSUMER REPORTING AGENCY IN ACCORDANCE WITH THE

15 FAIR CREDIT REPORTING ACT, TITLE VI OF THE CONSUMER CREDIT PRO-

16 TECTION ACT, PUBLIC LAW 90-321, 15 U.S.C. 1681 TO 1681u.

17 (J) FROM A CONSUMER REPORT REPORTED BY A CONSUMER REPORTING

18 AGENCY.

19 (K) IN CONNECTION WITH A PROPOSED OR ACTUAL SALE, MERGER,

20 TRANSFER, OR EXCHANGE OF ALL OR A PORTION OF A BUSINESS OR OPER-

21 ATING UNIT OF THE LICENSEE IF THE DISCLOSURE OF NONPUBLIC PER-

22 SONAL FINANCIAL INFORMATION CONCERNS SOLELY CONSUMERS OF THAT

23 BUSINESS OR UNIT.

24 (l) TO COMPLY WITH FEDERAL, STATE, OR LOCAL LAWS, RULES, AND

25 OTHER APPLICABLE LEGAL REQUIREMENTS.

03083'01

1 (M) TO COMPLY WITH A PROPERLY AUTHORIZED CIVIL, CRIMINAL, OR

2 REGULATORY INVESTIGATION, SUBPOENA, OR SUMMONS BY A FEDERAL,

3 STATE, OR LOCAL AUTHORITY.

4 (N) TO RESPOND TO JUDICIAL PROCESS OR A GOVERNMENT REGULA-

5 TORY AUTHORITY HAVING JURISDICTION OVER A LICENSEE FOR EXAMINA-

6 TION, COMPLIANCE, OR OTHER PURPOSES AS AUTHORIZED BY LAW.

7 (O) FOR PURPOSES RELATED TO THE REPLACEMENT OF A GROUP BENE-

8 FIT PLAN, A GROUP HEALTH PLAN, A GROUP WELFARE PLAN, OR WORKER'S

9 COMPENSATION PLAN TO THE EXTENT NECESSARY TO EFFECTUATE THE

10 REPLACEMENT.

11 SEC. 541. NOTHING IN THIS CHAPTER SHALL BE CONSTRUED TO

12 MODIFY, LIMIT, OR SUPERSEDE THE OPERATION OF THE FAIR CREDIT

13 REPORTING ACT, TITLE VI OF THE CONSUMER CREDIT PROTECTION ACT,

14 PUBLIC LAW 90-321, 15 U.S.C. 1681 TO 1681u, AND NO INFERENCE

15 SHALL BE DRAWN ON THE BASIS OF THE PROVISIONS OF THIS CHAPTER

16 REGARDING WHETHER INFORMATION IS TRANSACTION OR EXPERIENCE INFOR-

17 MATION UNDER SECTION 603 OF THE FAIR CREDIT REPORTING ACT, TITLE

18 VI OF THE CONSUMER CREDIT PROTECTION ACT, PUBLIC LAW 90-321, 15

19 U.S.C. 1681a.

20 SEC. 543. A LICENSEE SHALL NOT DISCRIMINATE AGAINST ANY

21 CONSUMER BECAUSE THAT CONSUMER HAS OPTED OUT OR INTENDS TO OPT

22 OUT FROM THE DISCLOSURE OF HIS OR HER NONPUBLIC PERSONAL FINAN-

23 CIAL INFORMATION PURSUANT TO THE PROVISIONS OF THIS CHAPTER.

24 SEC. 545. UNTIL JULY 1, 2002, A CONTRACT THAT A LICENSEE

25 HAS ENTERED INTO WITH A NONAFFILIATED THIRD PARTY TO PERFORM

26 SERVICES FOR THE LICENSEE OR FUNCTIONS ON THE LICENSEE'S BEHALF

27 SATISFIES THE PROVISIONS OF SECTION 535(1)(B), EVEN IF THE

03083'01

1 CONTRACT DOES NOT INCLUDE A REQUIREMENT THAT THE THIRD PARTY

2 MAINTAIN THE CONFIDENTIALITY OF NONPUBLIC PERSONAL FINANCIAL

3 INFORMATION, AS LONG AS THE LICENSEE ENTERED INTO THE AGREEMENT

4 ON OR BEFORE JULY 1, 2000.

5 SEC. 547. THE COMMISSIONER SHALL PROMULGATE RULES PURSUANT

6 TO THE ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306, MCL

7 24.201 TO 24.328, FOR ADMINISTRATIVE, TECHNICAL, AND PHYSICAL

8 SAFEGUARDS THAT PROTECT THE SECURITY, CONFIDENTIALITY, AND INTEG-

9 RITY OF CUSTOMER INFORMATION, PURSUANT TO SECTIONS 501, 505(b),

10 AND 507 OF THE GRAMM-LEACH-BLILEY ACT, PUBLIC LAW 106-102, 113

11 STAT. 1338, 15 U.S.C. 6801, 6805(b), AND 6807. RULES PROMULGATED

12 UNDER THIS SECTION SHALL NOT BE MORE RESTRICTIVE THAN THE INTER-

13 AGENCY GUIDELINES ESTABLISHING STANDARDS FOR SAFEGUARDING CUS-

14 TOMER INFORMATION, 66 F.R.P. 8616 (FEBRUARY 1, 2001).

15 SEC. 549. A VIOLATION OF THIS CHAPTER OR A RULE PROMULGATED

16 UNDER THIS CHAPTER SHALL BE CONSIDERED AN UNFAIR METHOD OF COMPE-

17 TITION AND AN UNFAIR OR DECEPTIVE ACT OR PRACTICE UNDER

18 CHAPTER 20 AND IS SUBJECT TO THE PROCEDURES AND PENALTIES PRO-

19 VIDED FOR IN CHAPTER 20.

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