Section Ins 25.10 - Initial privacy notice to consumers required(1) INITIAL NOTICE REQUIREMENT. A licensee shall provide a clear and conspicuous notice that accurately reflects its privacy policies and practices regarding nonpublic personal financial information to all of the following: (a) Customer. An individual who becomes the licensee's customer, not later than when the licensee establishes a customer relationship, except as provided in sub. (5).(b) Consumer. A consumer, before the 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 ss. Ins 25.55 and 25.60.(2) WHEN INITIAL NOTICE TO A CONSUMER IS NOT REQUIRED. A licensee is not required to provide an initial notice to a consumer under sub. (1) (b) if any of the following conditions apply: (a) The licensee does not disclose any nonpublic personal financial information about the consumer to any nonaffiliated third party, other than as authorized by ss. Ins 25.55 and 25.60, and the licensee does not have a customer relationship with the consumer.(b) An affiliated licensee has provided a notice, as long as the notice clearly identifies all licensees to whom the notice applies and is accurate with respect to the licensee and the other institutions.(3) WHEN THE LICENSEE ESTABLISHES A CUSTOMER RELATIONSHIP. (a) General rule. A licensee establishes a customer relationship at the time the licensee and the consumer enter into a continuing relationship.(b) Examples of establishing customer relationship. A licensee establishes a customer relationship when the consumer does any of the following: 1. Becomes a policyholder of a licensee that is an insurer when the insurer delivers an insurance policy or contract to the consumer, or in the case of a licensee that is an intermediary who is not acting as agent for an insurer licensee, obtains insurance through that licensee. A licensee does not establish a customer relationship due to issuance of a binder of coverage until the policy is issued, if the licensee allows the consumer to request delivery of the initial notice required under sub. (1) (a) and the licensee delivers the initial notice within a reasonable time after the licensee receives such a request. 2. Agrees to obtain financial, economic or investment advisory services relating to insurance products or services for a fee from the licensee.(4) EXISTING CUSTOMERS. When an existing customer obtains a new insurance product or service from a licensee that is to be used primarily for personal, family or household purposes, the licensee satisfies the initial notice requirements of sub. (1) if any of the following conditions are met:(a) The licensee may provide a revised policy notice, under s. Ins 25.20, that covers the customer's new insurance product or service.(b) If the initial, revised or annual notice that the licensee most recently provided to that customer was accurate with respect to the new insurance product or service, the licensee does not need to provide a new privacy notice under sub. (1). (5) EXCEPTIONS TO ALLOW SUBSEQUENT DELIVERY OF NOTICE.(a) A licensee may provide the initial notice required by sub. (1) (a) within a reasonable time after the licensee establishes a customer relationship if any of the following conditions exist:1. Establishing the customer relationship is not at the customer's election.2. Providing notice not later than when the licensee establishes a customer relationship would substantially delay the customer's transaction and the customer agrees to receive the notice at a later time.(b) The following are examples of when exceptions may or may not apply: 1. Establishing a customer relationship is not at the customer's election if a licensee acquires or is assigned a customer's policy from another financial institution or residual market mechanism and the customer does not have a choice about the licensee's acquisition or assignment.2. Providing notice not later than when a licensee establishes a customer relationship would substantially delay the customer's transaction when the licensee and the individual agree over the telephone to enter into a customer relationship involving prompt delivery of the insurance product or service.3. Providing notice not later than when a licensee establishes a customer relationship would not substantially delay the customer's transaction when the relationship is initiated in person at the licensee's office or through other means by which the customer may view the notice, such as on a web site.(6) DELIVERY. When a licensee is required to deliver an initial privacy notice by this section, the licensee shall deliver it according to s. Ins 25.25. If the licensee uses a short-form initial notice for non-customers according to s. Ins 25.15(4), the licensee may deliver its privacy notice according to s. Ins 25.15(4) (c).Wis. Admin. Code Office of the Commissioner of Insurance Ins 25.10
Cr. Register, June, 2001, No. 546, eff. 7-1-01.