                                 CODE OF VIRGINIA

NOTICE OF INFORMATION COLLECTION AND DISCLOSURE PRACTICES (§ 38.2-604)

A. An insurance institution or agent shall provide a notice of insurance
information practices to all applicants or policyholders in connection with
insurance transactions as provided in this section:

   1. In the case of an application for insurance a notice shall be provided no
   later than:
   				a. At the time of the delivery of the insurance policy or certificate when
   personal information is collected only from the applicant or from public
   records;
   				b. At the time the collection of personal information is initiated when
   personal information is collected from a source other than the applicant or
   public records; or
   				c. Notwithstanding the provisions of subdivision 1 b of subsection A, when
   an application for insurance is made by telephone and personal information is
   collected from a source other than the applicant or public records, the notice
   of insurance information practices may be given orally at the time of
   application, provided that, if a policy is issued, such notice is given in
   writing or, if the applicant agrees, in electronic format, no later than at
   the time of the delivery of the insurance policy or certificate.

   2. In the case of a policy renewal, a notice shall be provided no later than
   the policy renewal date, except that no notice shall be required in connection
   with a policy renewal if:
   				a. Personal information is collected only from the policyholder or from
   public records; or
   				b. A notice meeting the requirements of this section has been given within
   the previous 24 months; or

   3. In the case of a policy reinstatement or change in insurance benefits, a
   notice shall be provided no later than the time a request for a policy
   reinstatement or change in insurance benefits is received by the insurance
   institution, except that no notice shall be required if personal information
   is collected only from the policyholder or from public records.

B. The notice required by subsection A of this section shall be in writing or,
if the applicant or policyholder agrees, in electronic format, and shall state:

   1. Whether personal information may be collected from persons other than an
   individual proposed for coverage;

   2. The types of personal information that may be collected and the types of
   sources and investigative techniques that may be used to collect such
   information;

   3. The types of disclosures made under subdivisions 1, 2, 3, 4, 5, 8, 10, and
   12 of subsection B and subdivision 2 of subsection C of &#xA7; 38.2-613 and
   the circumstances under which such disclosures may be made without prior
   authorization, however only those circumstances need be described that occur
   with such frequency as to indicate a general business practice;

   4. A description of the rights established under &#xA7;&#xA7; 38.2-608 and
   38.2-609 and the manner in which those rights may be exercised; and

   5. That information obtained from a report prepared by an insurance-support
   organization may be retained by the insurance-support organization and
   disclosed to other persons.

C. Instead of the notice prescribed in subsection B of this section, the
insurance institution or agent may provide an abbreviated notice in writing or,
if the applicant or policyholder agrees, in electronic format, informing the
applicant or policyholder that:

   1. Personal information may be collected from persons other than an individual
   proposed for coverage;

   2. The information, as well as other personal or privileged information
   subsequently collected by the insurance institution or agent, in certain
   circumstances, may be disclosed to third parties without authorization;

   3. A right of access and correction exists with respect to all personal
   information collected; and

   4. The notice prescribed in subsection B of this section will be furnished to
   the applicant or policyholder upon request.

D. The obligations imposed by this section upon an insurance institution or
agent may be satisfied by another insurance institution or agent authorized to
act on its behalf.

E. An insurance agent shall not be subject to the requirements of this section
in any instance where the insurance institution on whose behalf the agent is
acting otherwise complies with the requirements contained herein, and the agent
does not disclose any personal information to any person other than the
insurance institution or its affiliates, or as permitted by &#xA7; 38.2-613.

F. [Repealed.]

G. An insurance agent seeking to place coverage on behalf of a current
policyholder shall be deemed to be in compliance with the requirements of this
section in any instance where the agent has provided the notice required by this
section within the previous 12 months.

HISTORY: 1981, c. 389, § 38.1-57.7; 1986, c. 562; 2001, c. 371; 2002, c. 76;
2003, c. 266.