Claire-ification

IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR

Are you a member with a question? Contact Claire to find the answer at 800-998-9644, ext. 604 or ClaireP@IABforME.com.

QUESTION:

Are we still required to send privacy notices?

ANSWER:

Yes, you are, but with a possible exception driven by amendments to the applicable federal law and state regulations adopted in the last few years.

Assuming you do not share non-public information outside the permitted exceptions, the following would apply:

▲ The initial notice to consumers (i.e. prospects) is still required. As a producer, you need to provide your privacy notice to your personal lines, WC, and group-benefit consumers no later than at the time the customer relationship is established, such as at the time a binder is issued.

▲ The annual notice to customers: The regulation used to require agencies to provide a privacy notice annually to those same personal lines, WC, and group-benefit customers. However, for Pennsylvania, Maryland, and Delaware policyholders, agencies are no longer required to send an annual notice if:

• the agency does not share nonpublic personal information with nonaffiliated third-parties, or only shares within specifically listed exceptions, and

• the agency has not changed its privacy policies and practices since providing its most recent notice.

If the agency later changes its processes/procedures and no longer meets these criteria, an annual privacy notice will again have to be provided.

This change became effective in 2017 in Maryland and Delaware, and in 2019 in Pennsylvania.

NEED A REFRESHER ON THE TOPIC?

The requirement to send privacy notices stems from the federal Gramm-Leach-Bliley Act (GLBA). In turn, state regulations were adopted spelling out specific requirements to comply. For a complete review of the requirement, including the specifically listed exemptions, access IA&B’s Gramm-Leach-Bliley Act (GLBA) White Paper at IABforME.com/white-papers.

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.