Michigan Laws 500.509 – Customer relationship; time of establishment; continuing relationship; revised privacy notice for new insurance product or service
Current as of: 2024 | Check for updates
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(1) A licensee establishes a customer relationship at the time the licensee and the consumer enter into a continuing relationship. A continuing relationship includes, but is not limited to, all of the following:
(a) For an insurer, when the consumer receives the delivery of an insurance policy or contract.
Terms Used In Michigan Laws 500.509
- Annual notice: means the privacy notice required in section 513. See Michigan Laws 500.503
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Consumer: includes , but is not limited to, all of the following:
(A) An individual who provides nonpublic personal information to a licensee in connection with obtaining or seeking to obtain financial, investment, or economic advisory services relating to an insurance product or service. See Michigan Laws 500.503Contract: A legal written agreement that becomes binding when signed. Customer: means a consumer who has a customer relationship with a licensee. See Michigan Laws 500.503 Insurance product or service: means any product or service that is offered by a licensee pursuant to the insurance laws of this state or pursuant to a federal insurance program. See Michigan Laws 500.503 Insurer: means an individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds organization, fraternal benefit society, or other legal entity, engaged or attempting to engage in the business of making insurance or surety contracts. See Michigan Laws 500.106 Licensee: means a licensed insurer or producer, and other persons licensed or required to be licensed, authorized or required to be authorized, registered or required to be registered, or holding or required to hold a certificate of authority under this act. See Michigan Laws 500.503 Producer: means a person required to be licensed under this act to sell, solicit, or negotiate insurance. See Michigan Laws 500.503 state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(b) For a producer, when the consumer obtains insurance through that licensee.
(c) When the consumer agrees to obtain financial, economic, or investment advisory services relating to insurance products or services for a fee from the licensee.
(2) An individual does not have a continuing relationship with a licensee as follows:
(a) If the individual’s policy is lapsed, expired, or otherwise inactive or dormant under the licensee’s business practices and the licensee has not communicated with the individual about the policy for a period of 12 consecutive months, other than to provide annual privacy notices, material required by law or regulation, communication at the direction of a state or federal authority, or promotional materials.
(b) If the individual is an insured or an annuitant under an insurance policy or annuity, but is not the policyholder or owner of the insurance policy or annuity.
(c) If the individual’s last known address according to the licensee’s records is invalid. An address of record is considered invalid if mail sent to that address by the licensee has been returned by the postal authorities as undeliverable and if subsequent attempts by the licensee to obtain a current, valid address for the individual have been unsuccessful.
(3) Except as otherwise provided in this subsection, when an existing customer obtains a new insurance product or service from a licensee that is to be used primarily for personal, family, or household purposes, the licensee shall provide a revised privacy notice that meets the requirements of section 525 and that covers the customer’s new insurance product or service. If the initial, revised, or annual notice that the licensee most recently provided to that customer under this chapter is accurate with respect to the new insurance product or service, the licensee does not need to provide a new privacy notice under this subsection.