2003 Privacy of Nonpublic Personal Information Regulations

STATE OF CALIFORNIA

JOHN GARAMENDI, Insurance Commissioner

DEPARTMENT OF INSURANCE

45 Fremont Street, 23rd Floor

San Francisco, CA 94105

www.insurance.ca.gov

NOTICE

Department of Insurance Privacy Regulations

Became Effective on March 24, 2003

TO:

ALL INSURANCE INSTITUTIONS, AGENTS, AND INSURANCE

SUPPORT ORGANIZATIONS SUBJECT TO CALIFORNIA AND

FEDERAL PRIVACY LAWS

DATE:

March 27, 2003

This Notice is to remind all insurance institutions, agents, and insurance support organizations

(“licensees”) subject to the provisions of the California Insurance Information and Privacy

Protection Act (California Insurance Code Sections 791 – 791.27) and the privacy provisions of

the Federal Gramm-Leach-Bliley Financial Services Modernization Act that California’s

regulations governing the Privacy of Nonpublic Personal Information took effect on March 24,

2003. Those regulations are set forth at Title 10, California Code of Regulations, Sections

2689.1 through 2689.24. A copy of the regulations1 is available on the Department of Insurance

website.

In summary, the regulations provide:

• Licensees generally must provide consumers with a Notice describing the licensee’s privacy

practices at the time of policy application and annually thereafter.

• All Notices must clearly and conspicuously describe the categories of personal information

collected about individuals, the categories of personal information disclosed about

individuals, and the categories of third parties who may receive that information.

• If a licensee wishes to disclose personal financial information to nonaffiliated third parties,

the licensee must provide a clear and conspicuous Opt-Out Notice and a cost-free method for

the consumer to reply.

• The regulations clarify what constitutes a clear and conspicuous notice.

1 The final regulation text as posted on the Department’s website for File Number RH01018269

is entitled “Final Privacy Regulation Text 11-21-02.”

nal financial information to nonaffiliated third parties,

the licensee must provide a clear and conspicuous Opt-Out Notice and a cost-free method for

the consumer to reply.

• The regulations clarify what constitutes a clear and conspicuous notice.

1 The final regulation text as posted on the Department’s website for File Number RH01018269

is entitled “Final Privacy Regulation Text 11-21-02.”

• Insurance producers are responsible for providing notices only if they collect or disclose

information in ways other than as set forth in the insurer’s notice.

• Nonpublic personal medical record information may not be disclosed without prior written

consent.

• Standards are required for the safeguarding of nonpublic personal information.

Licensees not in compliance with all applicable provisions may be subject to enforcement action

in accordance with California Insurance Code Section 791.15 and any other enforcement

provisions available to the Commissioner.

Any questions regarding this Notice or the specific requirements of the regulations can be

addressed to:

Mary Ann Shulman

Staff Counsel

California Department of Insurance

Legal Division, Rate Enforcement Bureau

45 Fremont Street, 21st Floor

San Francisco, CA 94105

(415) 538-4133

JOHN GARAMENDI

Insurance Commissioner

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