North Carolina General Statutes 58-39-26. Federal privacy disclosure notice requirements
(a) Disclosure Required. – In addition to the notice requirements of N.C. Gen. Stat. § 58-39-25, an insurance institution or agent shall provide, to all applicants and policyholders no later than (i) before the initial disclosure of personal information under N.C. Gen. Stat. § 58-39-75(11) or (ii) the time of the delivery of the insurance policy or certificate, a clear and conspicuous notice, in written or electronic form, of the insurance institution or agent’s policies and practices with respect to:
(1) Disclosing nonpublic personal information to affiliates and nonaffiliated third parties, consistent with section 502 of Public Law 106-102, including the categories of information that may be disclosed.
Terms Used In North Carolina General Statutes 58-39-26
- Agent: has the meaning as set forth in N. See North Carolina General Statutes 58-39-15
- Fair Credit Reporting Act: A federal law, established in 1971 and revised in 1997, that gives consumers the right to see their credit records and correct any mistakes. Source: OCC
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- Insurance institution: means any corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternal benefit society, or other person engaged in the business of insurance, including health maintenance organizations and medical, surgical, hospital, dental, and optometric service plans, governed by Articles 65 through 67 of this Chapter. See North Carolina General Statutes 58-39-15
- Personal information: includes an individual's name and address and medical-record information, but does not include privileged information. See North Carolina General Statutes 58-39-15
- Policyholder: means any person who:
- Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
(2) Disclosing nonpublic personal information of persons who have ceased to be customers of the financial institution.
(3) Protecting the nonpublic personal information of consumers.
These disclosures shall be made in accordance with the regulations prescribed under section 504 of Public Law 106-102.
(b) Information to Be Included. – The disclosure required by subsection (a) of this section shall include:
(1) The policies and practices of the insurance institution or agent with respect to disclosing nonpublic personal information to nonaffiliated third parties, other than agents of the insurance institution or agent, consistent with section 502 of Public Law 106-102, and including:
a. The categories of persons to whom the information is or may be disclosed, other than the persons to whom the information may be provided under section 502(e) of Public Law 106-102.
b. The policies and practices of the insurance institution or agent with respect to disclosing of nonpublic personal information of persons who have ceased to be customers of the insurance institution or agent.
(2) The categories of nonpublic personal information that are collected by the insurance institution or agent.
(3) The policies that the insurance institution or agent maintains to protect the confidentiality and security of nonpublic personal information in accordance with section 501 of Public Law 106-102.
(4) The disclosures required, if any, under section 603(d)(2)(A) (iii) of the Fair Credit Reporting Act.
(c) In the case of a policyholder, the notice required by this section shall be provided not less than annually during the continuation of the policy. As used in this subsection, “annually” means at least once in any period of 12 consecutive months during which the policy is in effect.
(d) Exception to Annual Notice Requirement. – An insurance institution or agent is not required to provide the privacy notice annually as required under subsection (c) of this section if all of the following apply:
(1) The insurance institution or agent provides nonpublic personal information only in accordance with the provisions of sections 502(b)(2) or 502(e) of Public Law 106-102 or regulations prescribed under section 504(b) of Public Law 106-102.
(2) The insurance institution or agent has not changed its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed in the most recent disclosure sent to consumers in accordance with this section.
If, at any time, subdivision (1) or (2) of this subsection no longer applies to an insurance institution or agent, then the insurance institution or agent shall be required to provide the annual privacy notice required under subsection (c) of this section. (2001-351, s. 4; 2003-262, s. 2(1); 2019-179, s. 5.)