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Gov. Body : Interior PERSONAL INFORMATION PROTECTION ACTSearch by Pages ※ The links provided by an automatic program for the convenience of users may have some errors. In 1999, Congress enacted the Gramm-Leach-Bliley Act (GLBA), which requires state insurance authorities to adopt requirements regarding the privacy and disclosure of nonpublic personal financial information applicable to the insurance industry. In an effort to aid the states in adopting consistent privacy requirements applicable to the insurance industry, the National Association of Insurance Commissioners
(NAIC) developed and adopted a model privacy regulation. Additionally, in 2001, the 77th Texas Legislature enacted SB 712 (codified in Chapter 601 of the Texas Insurance Code), which requires the Commissioner of Insurance to adopt rules consistent with the federal requirements of GLBA. The Department's permanent consumer financial information privacy rules became effective December 17, 2001. For more information, email . Frequently Asked Questions about Financial Privacy Requirements under SB 712 (28 TAC §§22.1-22.26)Please Note: These FAQs are intended to provide helpful guidance and information. They are not intended to replace or supplement the rules issued by the Department, nor are they intended to limit the applicability of the rules in any way. GeneralQ. Why did the Department adopt these rules? Q. What is nonpublic personal financial information, as is referenced in the rules? The rules, however, do provide for certain exceptions. Health information and information that is publicly available, such as in a phone book or a government record that is open to the public, is not nonpublic personal financial information. Q. Who must comply with the rules? The rules do not apply to information about companies or about individuals who obtain products or services for business, commercial, or agricultural purposes. Additionally, some covered entities may be exempted from the rules' requirements in certain circumstances. Many of these exceptions are explained herein. Q. What do the rules require a covered entity to do? Additionally, the rules specify that only certain individuals must be provided with these privacy notices and methods of "opting out." The rules define which individuals must be provided with these privacy notices and methods of "opting out" by classifying the individuals as "consumers" or "customers." Q. What does "opting out" mean? Q. Once an individual "opts out," how long does that direction last? Q. What's an affiliate? What's a non-affiliate? How do the rules apply to these entities? In contrast, a "non-affiliate" is an entity that is not an affiliate of, or related to by common ownership or affiliated by corporate control with, the covered entity. The rules apply to the sharing and disclosure of nonpublic personal financial information to non-affiliated third parties. Q. What must a notice look like?
The rules also contain sample notice forms that a covered entity may use, provided that the form accurately reflects the covered entity's actual privacy policies. Q. If a covered entity does not share or disclose an individual's nonpublic personal financial information, do the rules still apply to that
covered entity? Q. Does a covered entity have to send a notice to every person the entity has ever had contact with? Q. What happens if a covered entity does not provide a notice? Q. Are there times when a covered entity may share or disclose information without providing the notices required by the rules? Q. What about health information? Consumers, customers, beneficiaries, & claimantsQ. What is a consumer? What notice must a consumer receive under the rules? The rules require a covered entity to provide a notice to a consumer before the covered entity discloses any nonpublic personal financial information about the consumer to any non-affiliated third parties. The notice must include, among other items, the categories of information the covered entity collects, its policy for maintaining and sharing the information, and an explanation of the consumer's rights to "opt out" of any disclosures to non-affiliated parties. Q. What is a customer? What notice must a customer receive under the rules? The rules require a covered entity to provide a notice to a customer not later than when the covered entity establishes a customer relationship. The notice must include, among other items, the categories of information the covered entity collects, its policy for maintaining and sharing the information, and an explanation of the customer's rights to "opt out" of any disclosures to non-affiliated third parties. Additionally, a covered entity is required to provide an annual notice to a customer throughout the continuance of the customer relationship. The rules also require a covered entity to provide a revised notice to a customer if its privacy policy changes between the initial notice and the first annual notice sent to a customer or between two annual notices sent to a customer. Likewise, if any change in a covered entity's privacy policy requires a consumer to "opt out" to prevent the covered entity from sharing any information beyond what the consumer has already opted out of previously, the covered entity must provide the customer with a new opportunity to "opt out" of the disclosure of the additional information, as well. Q. How do the rules relate to a beneficiary or a person who has filed a claim against a policy issued by a covered entity (a claimant)? HMOsQ. Do the rules adopted pursuant to SB 712 apply to HMOs? URAs, TPAs and IROsQ. Are utilization review agents (URAs), third party administrators (TPAs) and independent review organizations (IROs) required to send out notices under the rules? If a covered entity, such as a TPA or URA, does not provide notices to individuals in reliance on the exception described above, but subsequently shares or discloses any nonpublic personal financial information it receives about an individual from another financial institution, that disclosure will be deemed in violation of the rules. Independent Review Organizations (IROs) don't generally provide personal, family, or household products or services to individuals and don't act on behalf of other covered entities. Additionally, IROs are prohibited from disclosing any personal financial information they receive about an individual whose care is subject to their review by both the Insurance Code and the IRO rules, located at 28 TAC Chapter 12. As such, IROs are not required to provide notices under the rules. Agents and adjustersQ. Do the rules apply to agents and adjusters? If the agent or adjuster shares or discloses any nonpublic personal financial information with anyone other than the entity on whose behalf the information was collected, the agent or adjuster must then comply with the rules' requirements and provide the appropriate notices required by the rules. Additionally, if an agent, for a fee, provides any other services to an individual, including financial services, investment services, or economic advisory services, the agent must provide all the required notices about the agent's privacy policy to that individual. Q. How will an agent know which entities have complied with the rules' requirements so the agent doesn't have to comply with them
separately? Q. What about independent agents that share or disclose information to several entities in order to obtain the best price quote for a client? If the agent discloses the nonpublic personal financial information to any party other than the entities on whose behalf the information was collected, the agent must then provide that individual with all appropriate notices. Farm and ranchQ. Do the rules apply
to Farm & Ranch policies? What is the name of the law that requires insurers to disclose?Consumer privacy. In 1999, Congress enacted the Gramm-Leach-Bliley Act (GLBA), which requires state insurance authorities to adopt requirements regarding the privacy and disclosure of nonpublic personal financial information applicable to the insurance industry.
What is the insured expected to disclose?Insurance contracts are contracts of the utmost good faith. This means that the insured has a duty to disclose to the insurer all material facts and circumstances of which the insured has actual or constructive knowledge.
What is the terminology used in insurance to disclose facts about the insurer?Definition: Getting into a contract with a person or a company on false grounds by making statements that are not in accordance with the facts is known as misrepresentation. In an insurance policy, misrepresentation on the behalf of the insured gives the insurance company a right to terminate the policy.
Which of the following individuals does not require an insurance agents license in North Carolina?Which of the following individuals does not require an insurance agent's license in North Carolina? Employees of insurance producers do not require an agent's license as long as they do not receive commissions from policies written or sold in the state.
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