                                 CODE OF VIRGINIA

SPECIAL REQUIREMENTS FOR PROVIDING FINANCIAL INFORMATION TO NONAFFILIATED THIRD
PARTIES (§ 38.2-612.1)

A. Except as otherwise provided in § 38.2-613, no insurance institution, agent,
or insurance-support organization may, directly or through an affiliate,
disclose to a nonaffiliated third party financial information about an
individual collected or received in connection with an insurance transaction,
unless:

   1. The individual has been given a clear and conspicuous notice in writing, or
   in electronic form if the individual agrees, stating that such financial
   information may be disclosed to such nonaffiliated third party;

   2. The individual is given an opportunity, before such financial information
   is initially disclosed, to direct that such information not be disclosed, and
   in no case shall the individual be given less than 30 days from the date of
   notice to direct that such information not be disclosed;

   3. The individual is given a reasonable means by which to exercise the right
   to direct that such information not be disclosed as well as an explanation
   that such right may be exercised at any time and that such right remains
   effective until revoked by the individual; and

   4. The nonaffiliated third party agrees not to disclose such financial
   information to any other person unless such disclosure would otherwise be
   permitted by this article if made by the insurance institution, agent, or
   insurance-support organization.

B. 1. No insurance institution, agent, or insurance-support organization may
disclose to a nonaffiliated third party, directly or through an affiliate, other
than to a consumer reporting agency, a policy number or similar form of access
number or transaction account of a policyholder or applicant for use in
telemarketing, direct mail marketing or other marketing through electronic mail
to an applicant or policyholder, other than to:
			a. An agent or other person solely for the purpose of marketing the insurance
institution&#8217;s own products or services as long as the agent or other
person is not authorized to directly initiate charges to the account; or
			b. A participant in a private label credit card program or an affinity or
similar program where the participants in the program are identified to the
policyholder or applicant at the time the policyholder or applicant enters the
program.

   2. A policy or transaction account shall not include an account to which third
   parties cannot initiate charges.

C. No insurance institution or agent shall unfairly discriminate against an
individual because (i) the individual has directed that his personal information
not be disclosed pursuant to subsection A or (ii) the individual has refused to
grant authorization of the disclosure of his privileged information or medical
record information by an insurance institution, agent or insurance support
organization pursuant to subsection A of &#xA7; 38.2-613.

D. The requirements of subsection A may be satisfied by providing a single
notice if two or more applicants or policyholders jointly obtain or apply for an
insurance product. Such notice shall allow one applicant or policyholder to
direct that financial information not be disclosed to nonaffiliated third
parties on behalf of all of the joint applicants or policyholders, provided that
each applicant or policyholder may separately direct that his financial
information not be disclosed to nonaffiliated third parties.

E. An insurance agent shall not be subject to the requirements of subsection A
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.

F. 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; 2003, c. 266; 2020, c. 264.