Section R590-206-5 - Required Initial Privacy Notice to Consumers(1) A licensee shall provide a clear and conspicuous notice that accurately reflects its privacy policies and practices to:(a) a customer, no later than when the licensee establishes a customer relationship, except as provided in Subsection (5); and(b) a consumer, before a licensee discloses any nonpublic personal financial information about the consumer to any nonaffiliated third party if the licensee makes a disclosure other than as authorized by Sections R590-206-16 and R590-206-17.(2) A licensee is not required to provide an initial notice to a consumer if:(a) the licensee does not disclose any nonpublic personal financial information about the consumer to a nonaffiliated third party, other than as authorized by Sections R590-206-16 and R590-206-17, and the licensee does not have a customer relationship with the consumer; or(b) a notice has been provided by an affiliated licensee, and the notice clearly identifies all licensees to whom the notice applies and is accurate with respect to the licensee and the other institutions.(3) A licensee establishes a customer relationship: (a) at the time the licensee and the consumer enter into a continuing relationship;(b) when the consumer becomes a policyholder following delivery of an insurance policy or contract to the consumer, or in the case of a licensee that is an insurance producer or insurance broker, obtains insurance through that licensee; or(c) when the consumer agrees to obtain financial, economic, or investment advisory services relating to an insurance product or service for a fee.(4)(a) When an existing customer obtains a new insurance product or service from a licensee that is used primarily for personal, family, or household purposes, the licensee satisfies the initial notice requirements if the licensee provides a revised policy notice, under Section R590-206-9, that covers the customer's new insurance product or service.(b) If the initial, revised, or annual notice most recently provided to the customer was accurate with respect to the new insurance product or service, a new privacy notice is not required.(5) A licensee may provide the initial notice required by Subsection (1)(a) within a reasonable time after the licensee establishes a customer relationship if: (a) establishing the customer relationship is not at the customer's election, such as if a licensee acquires or is assigned a customer's policy from another person and the customer does not have a choice about the acquisition or assignment; or(b) providing notice no later than when the licensee establishes a customer relationship would substantially delay the customer's transaction and the customer agrees to receive the notice later.(6)(a) When a licensee is required to deliver an initial privacy notice by this section, the licensee shall deliver it according to Section R590-206-11.(b) If a licensee uses a short-form initial notice for a consumer according to Subsection R590-206-7(4), the licensee may deliver its privacy notice according to Subsection R590-206-7(4)(c).Utah Admin. Code R590-206-5
Amended by Utah State Bulletin Number 2017-15, effective 7/11/2017Adopted by Utah State Bulletin Number 2023-23, effective 11/21/2023