                                 CODE OF VIRGINIA

NOTICE OF FINANCIAL INFORMATION COLLECTION AND DISCLOSURE PRACTICES (§
38.2-604.1)

A. An insurance institution or agent shall provide clear and conspicuous notice
of financial information collection and disclosure practices in connection with
insurance transactions as required by subsection B of this section:

   1. To an applicant before any financial information is disclosed about that
   applicant to any nonaffiliated third party, if the disclosure is made other
   than as permitted under &#xA7; 38.2-613. For purposes of this subdivision, a
   notice provided to an employer benefit plan sponsor, group or blanket
   insurance contract holder, or group annuity contract holder shall satisfy the
   notice requirements of this subdivision for applicants of such plan, policy,
   or annuity, provided the insurance institution or agent does not disclose the
   financial information of those applicants to a nonaffiliated third party,
   other than as permitted under &#xA7; 38.2-613;

   2. To a policyholder no later than delivery or issuance of the policy or any
   other evidence of coverage, or at the later of these events. For purposes of
   this subdivision, a notice provided to an employee benefit plan sponsor, group
   or blanket insurance contract holder, or group annuity contract holder shall
   satisfy the notice requirements of this subdivision for persons covered under
   such plans, policies, or annuities, provided the insurance institution or
   agent does not disclose the financial information of those persons to a
   nonaffiliated third party, other than as permitted under &#xA7; 38.2-613; and

   3. To a policyholder, other than a policyholder of a title insurance policy,
   not less than once in each calendar year. A notice provided to the sponsor of
   an employee benefit plan or the owner of a group or blanket insurance policy
   or group annuity contract shall satisfy the notice requirements of this
   subdivision for persons covered under such plan, policy or contract. For
   purposes of this subdivision only, &#8220;policyholder&#8221; does not include
   a person who owns a policy that is lapsed, expired or otherwise inactive or
   dormant under the insurance institution&#8217;s business practices, and with
   whom the insurance institution has not communicated about the relationship for
   a period of 12 consecutive months, other than annual privacy notices, material
   required by law or regulation, communication at the direction of a state or
   federal authority, or promotional materials. An insurance institution or agent
   that provides nonpublic personal information to nonaffiliated third parties
   only in accordance with &#xA7; 38.2-613 and has not changed its policies and
   practices with regard to disclosing nonpublic financial information from the
   policies and practices that were disclosed in the most recent notice sent to
   the policyholder in accordance with this section shall not be required to
   provide an annual notice under this section until such time as the licensee
   does not comply with any criteria described in this subdivision.

B. Any 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. The types of financial information that may be collected;

   2. The types of financial information that may be disclosed;

   3. The categories of persons to whom financial information may be disclosed;
   however, when disclosures are made pursuant to subsection B of &#xA7;
   38.2-613, the notice is only required to state that disclosures may be made
   without prior authorization as permitted by law;

   4. If financial information is disclosed pursuant to subdivision C 1 of &#xA7;
   38.2-613, the types of financial information that may be disclosed and the
   categories of nonaffiliated third parties to whom financial information may be
   disclosed by contractual agreement;

   5. An explanation of the right to direct that financial information not be
   disclosed to nonaffiliated third parties as provided in &#xA7; 38.2-612.1,
   provided that this explanation shall not be required to be given when
   information is disclosed pursuant to the provisions of &#xA7; 38.2-613;

   6. A description of the policies and practices for protecting the
   confidentiality and security of financial information;

   7. The disclosure required, if any, under Section 603 (d)(2)(A)(iii) of the
   federal Fair Credit Reporting Act (15 U.S.C. &#xA7; 1681 et seq.) pertaining
   to the notices regarding the ability to opt out of disclosure of information
   among affiliates; and

   8. A description of the types of financial information about former
   policyholders that may be disclosed and a description of the types of
   affiliates and nonaffiliated third parties to whom financial information about
   former policyholders may be disclosed; however, when disclosures are made
   pursuant to subsection B of &#xA7; 38.2-613, the notice is only required to
   state that disclosures may be made without prior authorization as permitted by
   law.

C. An insurance institution or agent that does not disclose, and does not wish
to reserve the right to disclose, financial information about policyholders or
former policyholders to affiliates or nonaffiliated third parties except as
authorized in subsection B of § 38.2-613 may satisfy the requirements of this
section by providing a notice, as set forth in subdivisions A 2 and A 3 of this
section, that:

   1. States the foregoing information regarding such insurance institution or
   agent;

   2. Includes the information described in subdivisions B 1 and B 6 of this
   section; and

   3. States that the insurance institution or agent makes disclosures to other
   affiliated or nonaffiliated third parties, as applicable, as permitted by law.

D. An insurance institution or agent may satisfy the notice requirements of
subdivision A 1 of this section by providing a short form notice at the same
time that the insurance institution or agent delivers an opt out notice as
required by &#xA7; 38.2-612.1. Such a short form notice shall: (i) be clear and
conspicuous; (ii) state that the notice prescribed in subsection B of this
section is available upon request; (iii) explain a reasonable means by which the
applicant may obtain that notice; and (iv) be in writing or, if the applicant
agrees, in electronic format. The insurance institution or agent is not required
to deliver the notice prescribed in subsection B of this section with its short
form notice, provided the insurance institution or agent provides the applicant
with a reasonable means to obtain such notice.

E. 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. An insurance institution may provide a joint notice from the
insurance institution and one or more of its affiliates or other financial
institutions, as identified in the notice, if the notice is accurate with
respect to the insurance institution and the other institutions.

F. An insurance institution or agent, prior to disclosing financial information
to a nonaffiliated third party other than as described in the notice prescribed
in subsection B of this section, shall send a revised notice that accurately
describes its information collection and disclosure practices. Such notice shall
comply with the provisions of subsection B of this section.

G. An insurance institution or agent may satisfy the notice requirements of
&#xA7; 38.2-604 and this section through the use of separate notices or a
combined notice.

H. 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 financial information to any person other than the
insurance institution or its affiliates, or as permitted by &#xA7; 38.2-613.

I. 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: 2001, c. 371; 2002, c. 76; 2003, c. 266; 2017, c. 648.