Chapter Ins 25

Ins 25.15(3)(a)3. 3. Information about the consumer’s transactions with nonaffiliated third parties.

Ins 25.15(3)(a)4. 4. Information from a consumer reporting agency.

Ins 25.15(3)(b) (b) Categories of nonpublic personal financial information a licensee discloses.

Ins 25.15(3)(b)1. 1. A licensee satisfies the requirement to categorize nonpublic personal financial information it discloses if the licensee categorizes the information according to source, as described in par. (a), as applicable, and provides at least one example, and additional examples as are reasonably appropriate, to illustrate the types of information in each category. Examples may include any of the following:

Ins 25.15(3)(b)1.a. a. Information from the consumer, including application information, such as assets and income and identifying information, such as name, address and social security number.

Ins 25.15(3)(b)1.b. b. Transaction information, such as information about balances, payment history and parties to the transaction.

Ins 25.15(3)(b)1.c. c. Information from consumer reports, such as a consumer’s creditworthiness and credit history.

Ins 25.15(3)(b)2. 2. A licensee does not adequately categorize the information that it discloses if the licensee uses only general terms, such as transaction information about the consumer.

Ins 25.15(3)(b)3. 3. If a licensee reserves the right to disclose all of the nonpublic personal financial information about consumers that it collects, the licensee may simply state that fact without describing the categories or examples of nonpublic personal financial information that the licensee discloses.

Ins 25.15(3)(c) (c) Categories of affiliates and nonaffiliated third parties to whom the licensee discloses.

Ins 25.15(3)(c)1. 1. A licensee satisfies the requirement to categorize the affiliates and nonaffiliated third parties to which the licensee discloses nonpublic personal financial information about consumers if the licensee identifies the types of businesses in which they engage.

Ins 25.15(3)(c)2. 2. Types of businesses may be described by general terms only if the licensee uses at least one example, and additional examples as are reasonably appropriate, to illustrate the significant lines of business. For example, a licensee may use the term financial products or services if it includes appropriate examples of significant lines of businesses, such as life insurer, automobile insurer, consumer banking or securities brokerage.

Ins 25.15(3)(c)3. 3. A licensee also may categorize the affiliates and nonaffiliated third parties to which it discloses nonpublic personal financial information about consumers using more detailed categories than those described in this paragraph.

Ins 25.15(3)(d) (d) Disclosures under exception for service providers and joint marketers. If a licensee discloses nonpublic personal financial information under the exception in s. Ins 25.50 to a nonaffiliated third party to market products or services that it offers alone or jointly with another financial institution, the licensee satisfies the disclosure requirement of sub. (1) (e) if it does all of the following:

Ins 25.15(3)(d)1. 1. Lists the categories of nonpublic personal financial information it discloses, using the same categories and examples the licensee used to meet the requirements of sub. (1) (b), as applicable.

Ins 25.15(3)(d)2. 2. States whether the third party is any of the following:

Ins 25.15(3)(d)2.a. a. A service provider that performs marketing services on the licensee’s behalf or on behalf of the licensee and another financial institution.

Ins 25.15(3)(d)2.b. b. A financial institution with whom the licensee has a joint marketing agreement.

Ins 25.15(3)(e) (e) Simplified notices. If a licensee does not disclose, and does not wish to reserve the right to disclose, nonpublic personal financial information about customers or former customers to affiliates or nonaffiliated third parties except as authorized under ss. Ins 25.55 and 25.60, the licensee may simply state that fact, in addition to the information it shall provide under sub. (1) (a), (h), and (i) and (2).

Ins 25.15(3)(f) (f) Confidentiality and security. A licensee describes its policies and practices with respect to protecting the confidentiality and security of nonpublic personal financial information if it does all of the following:

Ins 25.15(3)(f)1. 1. Describes in general terms who is authorized to have access to the information.

Ins 25.15(3)(f)2. 2. States whether the licensee has security practices and procedures in place to ensure the confidentiality of the information in accordance with the licensee’s policy. The licensee is not required to describe technical information about the safeguards that it uses.

Ins 25.15(4) (4) Short-form initial notice with opt-out notice for non-customers.

Ins 25.15(4)(a) (a) A licensee may satisfy the initial notice requirements in ss. Ins 25.10 (1) (b) and 25.17 (3) for a consumer who is not a customer by providing a short-form initial notice at the same time as the licensee delivers an opt out notice as required in s. Ins 25.17.

Ins 25.15(4)(b) (b) A short-form initial notice shall comply with all of the following:

Ins 25.15(4)(b)1. 1. It shall be clear and conspicuous.

Ins 25.15(4)(b)2. 2. It shall state that the licensee’s privacy notice is available upon request.

Ins 25.15(4)(b)3. 3. It shall explain a reasonable means by which the consumer may obtain that notice.

Ins 25.15(4)(c) (c) The licensee shall deliver its short-form initial notice according to s. Ins 25.25. The licensee is not required to deliver its privacy notice with its short-form initial notice. The licensee instead may simply provide the consumer a reasonable means to obtain its privacy notice. If a consumer who receives the licensee’s short-form notice requests the licensee’s privacy notice, the licensee shall deliver its privacy notice according to s. Ins 25.25.

Ins 25.15(4)(d) (d) Examples of obtaining privacy notice. The licensee provides a reasonable means by which a consumer may obtain a copy of its privacy notice if the licensee does any of the following:

Ins 25.15(4)(d)1. 1. Provides a toll-free telephone number that the consumer may call to request the notice.

Ins 25.15(4)(d)2. 2. For a consumer who conducts business in person at the licensee’s office, maintains copies of the notice on hand that the licensee provides to the consumer immediately upon request.

Ins 25.15(5) (5) Future disclosures. The licensee’s notice may include any of the following:

Ins 25.15(5)(a) (a) Categories of nonpublic personal financial information that the licensee reserves the right to disclose in the future, but does not currently disclose.

Ins 25.15(5)(b) (b) Categories of affiliates or nonaffiliated third parties to whom the licensee reserves the right in the future to disclose, but to whom the licensee does not currently disclose, nonpublic personal financial information.

Ins 25.15(6) (6) Sample clauses. Sample clauses illustrating some of the notice content required by this section are included in Appendix A of this chapter.

Ins 25.15 History History: Cr. Register, June, 2001, No. 546, eff. 7-1-01.

Ins 25.17 Ins 25.17 Form of opt out notice to consumers and opt out methods.

Ins 25.17(1) (1) Form.

Ins 25.17(1)(a) (a) Form of opt out notice. If a licensee is required to provide an opt out notice under s. Ins 25.30 (1), it shall provide a clear and conspicuous notice to each of its consumers that accurately explains the right to opt out under that section. The notice shall include all of the following:

Ins 25.17(1)(a)1. 1. That the licensee discloses or reserves the right to disclose nonpublic personal financial information about its consumer to a nonaffiliated third party.

Ins 25.17(1)(a)2. 2. That the consumer has the right to opt out of that disclosure.

Ins 25.17(1)(a)3. 3. A reasonable means by which the consumer may exercise the opt out right.

Ins 25.17(1)(b) (b) Examples.

Ins 25.17(1)(b)1. 1. A licensee provides notice that the consumer can opt out of the disclosure of nonpublic personal financial information to a nonaffiliated third party in compliance with this section if the licensee does all of the following:

Ins 25.17(1)(b)1.a. a. Identifies all of the categories of nonpublic personal financial information that it discloses or reserves the right to disclose, and all of the categories of nonaffiliated third parties to which the licensee discloses the information, as described in s. Ins 25.15 (3) (b) and (c), and states that the consumer can opt out of the disclosure of that information.

Ins 25.17(1)(b)1.b. b. Identifies the insurance products or services that the consumer obtains from the licensee, either singly or jointly, to which the opt out direction would apply.

Ins 25.17(1)(b)2. 2. A licensee provides a reasonable means to exercise an opt out right if it does any of the following:

Ins 25.17(1)(b)2.a. a. Designates check-off boxes in a prominent position on the relevant forms with the opt out notice.

Ins 25.17(1)(b)2.b. b. Includes a reply form together with the opt out notice.

Ins 25.17(1)(b)2.c. c. Provides an electronic means to opt out, such as a form that can be sent via electronic mail or a process at the licensee’s web site, if the consumer agrees to the electronic delivery of information.

Ins 25.17(1)(b)2.d. d. Provides a toll-free telephone number that consumers may call to opt out.

Ins 25.17(1)(b)3. 3. A licensee does not provide a reasonable means of opting out if any of the following exist:

Ins 25.17(1)(b)3.a. a. The only means of opting out is for the consumer to write his or her own letter to exercise that opt out right.

Ins 25.17(1)(b)3.b. b. The only means of opting out as described in any notice subsequent to the initial notice is to use a check-off box that the licensee provided with the initial notice but did not include with the subsequent notice.

Ins 25.17(1)(b)4. 4. A licensee may require each consumer to opt out through a specific means, as long as that means is reasonable for that consumer.

Ins 25.17(2) (2) Same form as initial notice permitted. A licensee may provide the opt out notice together with or on the same written or electronic form as the initial notice the licensee provides in accordance with s. Ins 25.10.

Ins 25.17(3) (3) Initial notice required when opt out notice delivered subsequent to initial notice. If a licensee provides the opt out notice later than required for the initial notice in accordance with s. Ins 25.10, the licensee shall also include a copy of the initial notice with the opt out notice in writing or, if the consumer agrees, electronically.

Ins 25.17(4) (4) Joint relationships.

Ins 25.17(4)(a) (a) If two or more consumers jointly obtain an insurance product or service from a licensee, the licensee may provide a single opt out notice. The licensee’s opt out notice shall explain how the licensee will treat an opt out direction by a joint consumer, as explained in par. (e).

Ins 25.17(4)(b) (b) Any of the joint consumers may exercise the right to opt out. The licensee may do either of the following:

Ins 25.17(4)(b)1. 1. Treat an opt out direction by a joint consumer as applying to all of the associated joint consumers.

Ins 25.17(4)(b)2. 2. Permit each joint consumer to opt out separately, subject to par. (c).

Ins 25.17(4)(c) (c) If a licensee permits each joint consumer to opt out separately, the licensee shall permit one of the joint consumers to opt out on behalf of all of the joint consumers.

Ins 25.17(4)(d) (d) A licensee may not require all joint consumers to opt out before it implements any opt out direction.

Ins 25.17(4)(e) (e) Example. If John and Mary are both named policyholders on a homeowner’s insurance policy issued by a licensee and the licensee sends policy statements to John’s address, the licensee may do any of the following, but it shall explain in its opt out notice which opt out policy the licensee will follow:

Ins 25.17(4)(e)1. 1. Send a single opt out notice to John’s address, but the licensee shall accept an opt out direction from either John or Mary.

Ins 25.17(4)(e)2. 2. Treat an opt out direction by either John or Mary as applying to the entire policy. If the licensee does so and John opts out, the licensee may not require Mary to opt out as well before implementing John’s opt out direction.

Ins 25.17(4)(e)3. 3. If the licensee permits John and Mary to make different opt out directions, the licensee shall do all of the following:

Ins 25.17(4)(e)3.a. a. It shall permit John and Mary to opt out for each other.

Ins 25.17(4)(e)3.b. b. If both opt out, the licensee shall permit both of them to notify it in a single response, such as on a form or through a telephone call.

Ins 25.17(4)(e)3.c. c. If John opts out and Mary does not, the licensee may only disclose nonpublic personal financial information about Mary, but not about John and not about John and Mary jointly.

Ins 25.17(5) (5) Time to comply with opt out. A licensee shall comply with a consumer’s opt out direction as soon as reasonably practicable after the licensee receives it.

Ins 25.17(6) (6) Continuing right to opt out. A consumer may exercise the right to opt out at any time.

Ins 25.17(7) (7) Duration of the consumer’s opt out direction.

Ins 25.17(7)(a) (a) A consumer’s direction to opt out under this section is effective until the consumer revokes it in writing or, if the consumer agrees, electronically.

Ins 25.17(7)(b) (b) When a customer relationship terminates, the customer’s opt out direction continues to apply to the nonpublic personal financial information that the licensee collected during or related to that relationship. If the individual subsequently establishes a new customer relationship with the licensee, the opt out direction that applied to the former relationship does not apply to the new relationship.

Ins 25.17(8) (8) Delivery. When a licensee is required to deliver an opt out notice by this section, the licensee shall deliver it according to s. Ins 25.25.

Ins 25.17 History History: Cr. Register, June, 2001, No. 546, eff. 7-01-01.

Ins 25.20 Ins 25.20 Revised privacy notices.

Ins 25.20(1) (1) General rule. Except as otherwise authorized in this chapter, a licensee shall not, directly or through an affiliate, disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party other than as described in the initial notice that the licensee provided to that consumer under s. Ins 25.10, unless all of the following have occurred:

Ins 25.20(1)(a) (a) The licensee has provided to the consumer a clear and conspicuous revised notice that accurately describes its policies and practices.

Ins 25.20(1)(b) (b) The licensee has provided to the consumer a new opt out notice.

Ins 25.20(1)(c) (c) The licensee has given the consumer a reasonable opportunity, before the licensee discloses the information to the nonaffiliated third party, to opt out of the disclosure.

Ins 25.20(1)(d) (d) The consumer does not opt out.

Ins 25.20(2) (2) Examples.

Ins 25.20(2)(a) (a) Except as otherwise permitted by ss. Ins 25.50, 25.55, and 25.60, a licensee shall provide a revised notice before it does any of the following:

Ins 25.20(2)(a)1. 1. Discloses a new category of nonpublic personal financial information to any nonaffiliated third party.

Ins 25.20(2)(a)2. 2. Discloses nonpublic personal financial information to a new category of nonaffiliated third party.