Wisconsin Legislature: Ins 25.04(9)

(6)

(a) “Consumer” means an individual about whom a licensee has nonpublic personal information, who:

1. Seeks to obtain, obtains or has obtained an insurance product or service from a licensee that is to be used primarily for personal, family or household purposes;

2. Is a claimant under a workers’ compensation policy;

3. Is insured under a group health plan; or

4. Is a third-party claimant under an insurance product or service obtained for business, commercial or agricultural purposes,.

(b) The following are examples of consumers:

1. 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 is a consumer regardless of whether the licensee establishes an ongoing advisory relationship.

2. An applicant for insurance prior to the inception of insurance coverage is a licensee’s consumer.

3. An individual is a licensee’s consumer if all of the following conditions exist:

a. The individual is a beneficiary of a life insurance policy underwritten by the licensee, a claimant under an insurance policy issued by the licensee, a named insured or an annuitant under an insurance policy or an annuity, respectively, issued by the licensee, or a mortgagor of a mortgage covered under a mortgage insurance policy.

b. The licensee discloses nonpublic personal financial information about the individual to a nonaffiliated third party other than as permitted under ss. Ins 25.50, 25.55, and 25.60.

1. Provided that the licensee provides the initial notice under s. Ins 25.10 to the plan sponsor, group or blanket insurance policyholder, group annuity contract-holder, or workers’ compensation policyholder and that the licensee does not disclose to a nonaffiliated third party nonpublic personal financial information about such an individual other than as permitted under ss. Ins 25.50, 25.55, and 25.60, an individual is not the consumer of the licensee solely because the individual is any of the following:

a. A participant or a beneficiary of an employee benefit plan that the licensee administers or sponsors or for which the licensee acts as a trustee, insurer or fiduciary.

b. Covered under a group or blanket insurance policy or group annuity contract issued by the licensee.

c. A claimant under a workers’ compensation policy.

a. The individuals described in subd. 1. a. to c. are consumers of a licensee if the licensee does not meet all the conditions of subd. 1.

b. In no event shall the individuals, solely by virtue of the status described in subd. 1. a. to c., be deemed to be customers for purposes of this chapter.

3. An individual is not a licensee’s consumer solely because he or she is a beneficiary of a trust for which the licensee is a trustee.

4. An individual is not a licensee’s consumer solely because he or she has designated the licensee as trustee for a trust.

5. An individual who is a consumer of another financial institution is not a licensee’s consumer solely because the licensee is acting as agent for, or provides processing or other services to, that financial institution.

(d) “Consumer” includes the legal representative of an individual who is a consumer.

(7) “Consumer reporting agency” has the same meaning as in Section 603(f) of the federal Fair Credit Reporting Act (15 USC 1681a(f)).

(8) “Control” means any of the following:

(a) Ownership, control or power to vote 25 % or more of the outstanding shares of any class of voting security of the company, directly or indirectly, or acting through one or more other persons.

(b) Control in any manner over the election of a majority of the directors, trustees or general partners, or individuals exercising similar functions, of the company or by an agreement establishing an attorney in fact for a reciprocal as defined by s. 600.03 (41), Stats.

(c) The power to exercise, directly or indirectly, a controlling influence over the management or policies of the company.

(9) “Customer” means a consumer who has a customer relationship with a licensee.

(10)

(a) “Customer relationship” means a continuing relationship between a consumer and a licensee under which the licensee provides one or more insurance products or services to the consumer that are to be used primarily for personal, family or household purposes.

(b) The following are examples relating to customer relationship:.

1. A consumer has a continuing relationship with a licensee if any of the following conditions exist:

a. The consumer is a current policyholder of an insurance product issued by or through the licensee.

b. The consumer obtains financial, investment or economic advisory services relating to an insurance product or service from the licensee for a fee.

2. A consumer does not have a continuing relationship with a licensee under any of the following conditions:

a. The consumer applies for insurance but does not purchase the insurance.

b. The licensee sells the consumer airline travel insurance in an isolated transaction.

c. The consumer is no longer a current policyholder of an insurance product or no longer obtains insurance services with or through the licensee.

d. The consumer is a beneficiary or claimant under a policy and has submitted a claim under that policy, choosing a settlement option involving an ongoing relationship with the licensee.

e. The consumer is a beneficiary or a claimant under a policy and has submitted a claim under that policy, choosing a lump sum settlement option.

f. The customer’s policy is lapsed, expired, or otherwise inactive or dormant under the licensee’s business practices, and the licensee has not communicated with the customer about the relationship for a period of twelve 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.

g. The consumer is an insured or an annuitant under an insurance policy or annuity, respectively, but is not the policyholder or owner of the insurance policy or annuity.

h. The consumer’s last known address according to the licensee’s records is deemed invalid. An address of record is deemed 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 consumer have been unsuccessful.

(11)

(a) “Financial institution” means any institution the business of which is engaging in activities that are financial in nature or incidental to such financial activities as described in Section 4(k) of the Bank Holding Company Act of 1956 (12 USC 1843(k)).

(b) Financial institution does not include any of the following:

1. Any person or entity with respect to any financial activity that is subject to the jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act (7 USC 1 et seq.).

2. The Federal Agricultural Mortgage Corporation or any entity charged and operating under the Farm Credit Act of 1971 (12 USC 2001 et seq.).

3. Institutions chartered by Congress specifically to engage in securitizations, secondary market sales, including sales of servicing rights, or similar transactions related to a transaction of a consumer, as long as the institutions do not sell or transfer nonpublic personal information to a nonaffiliated third party.

(12)

(a) “Financial product or service” means any product or service that a financial holding company could offer by engaging in an activity that is financial in nature or incidental to such a financial activity under Section 4(k) of the Bank Holding Company Act of 1956 (12 USC 1843(k)).

(b) Financial service includes a financial institution’s evaluation or brokerage of information that the financial institution collects in connection with a request or an application from a consumer for a financial product or service.

(13) “Health care” means any of the following:

(a) Preventive, diagnostic, therapeutic, rehabilitative, maintenance or palliative care, services, procedures, tests or counseling that involves any of the following:

1. It relates to the physical, mental or behavioral condition of an individual.

2. It affects the structure or function of the human body or any part of the human body, including the banking of blood, sperm, organs or any other tissue.

(b) Prescribing, dispensing or furnishing to an individual drugs or biologicals, or medical devices or health care equipment and supplies.

(14) “Health care provider” means a physician or other health care practitioner licensed, accredited or certified to perform specified health services consistent with state law, or a health care facility.

(15) “Health information” means any information or data except age or gender, whether oral or recorded in any form or medium, created by or derived from a health care provider or the consumer that relates to any of the following:

(a) The past, present or future physical, mental or behavioral health or condition of an individual.

(b) The provision of health care to an individual.

(16)

(a) “Insurance product or service” means any product or service that is offered by a licensee pursuant to the insurance laws of this state.

(b) Insurance service includes a licensee’s evaluation, brokerage or distribution of information that the licensee collects in connection with a request or an application from a consumer for an insurance product or service.

(17)

(a) “Licensee” means all insurers, intermediaries, third party administrators and other persons licensed or required to be licensed, or authorized or required to be authorized, or registered or required to be registered under chs. 600 to 655, Stats.

(b) A licensee is not subject to the notice and opt out requirements for nonpublic personal financial information set forth in subchs. I to IV if the licensee is an employee, agent or other representative of another licensee (“the principal”) and all of the following conditions exist:

1. The principal otherwise complies with, and provides the notices required by, the provisions of this chapter.

2. The licensee does not disclose any nonpublic personal financial information to any person other than the principal or its affiliates in a manner permitted by this chapter.

(c)

1. Subject to subd. 2., “licensee” also includes an unauthorized insurer that accepts business placed through a licensed surplus lines broker or agent in this state, but only in regard to placements placed pursuant to s. 618.41, Stats.

2. A surplus lines broker or agent or surplus lines insurer shall be deemed to be in compliance with the notice and opt out requirements for nonpublic personal financial information set forth in subchs. I to IV provided all of the following occur:

a. The broker, agent or insurer does not disclose nonpublic personal financial information of a consumer or a customer to nonaffiliated third parties for any purpose, including joint servicing or marketing under s. Ins 25.50, except as permitted by s. Ins 25.55 or 25.60.

b. The broker, agent or insurer delivers a notice to the consumer at the time a customer relationship is established on which the following is printed in 16-point type:

PRIVACY NOTICE

NEITHER THE U.S. BROKERS THAT HANDLED THIS INSURANCE NOR THE INSURERS THAT HAVE UNDERWRITTEN THIS INSURANCE WILL DISCLOSE NONPUBLIC PERSONAL FINANCIAL INFORMATION CONCERNING THE BUYER TO NONAFFILIATES OF THE BROKERS OR INSURERS EXCEPT AS PERMITTED BY LAW.

(18)

(a) “Nonaffiliated third party” means any person except any of the following:

1. A licensee’s affiliate.

2. A person employed jointly by a licensee and any company that is not the licensee’s affiliate. Under these circumstances “nonaffiliated third party” does include the other company that jointly employs the person.

(b) “Nonaffiliated third party” includes any company that is an affiliate solely by virtue of the direct or indirect ownership or control of the company by the licensee or its affiliate in conducting merchant banking or investment banking activities of the type described in Section 4(k)(4)(H) or insurance company investment activities of the type described in Section 4(k)(4)(I) of the federal Bank Holding Company Act (12 USC 1843(k)(4)(H) and (I)).

(19) “Nonpublic personal information” means nonpublic personal financial information and nonpublic personal health information.

(20)

(a) “Nonpublic personal financial information” means all of the following:

1. Personally identifiable financial information.

2. Any list, description or other grouping of consumers, and publicly available information pertaining to them, that is derived using any personally identifiable financial information that is not publicly available.