Chapter Ins 25

Ins 25.10(3)(b) (b) Examples of establishing customer relationship. A licensee establishes a customer relationship when the consumer does any of the following:

Ins 25.10(3)(b)1. 1. Becomes a policyholder of a licensee that is an insurer when the insurer delivers an insurance policy or contract to the consumer, or in the case of a licensee that is an intermediary who is not acting as agent for an insurer licensee, obtains insurance through that licensee. A licensee does not establish a customer relationship due to issuance of a binder of coverage until the policy is issued, if the licensee allows the consumer to request delivery of the initial notice required under sub. (1) (a) and the licensee delivers the initial notice within a reasonable time after the licensee receives such a request.

Ins 25.10(3)(b)2. 2. Agrees to obtain financial, economic or investment advisory services relating to insurance products or services for a fee from the licensee.

Ins 25.10(4) (4) Existing customers. 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 satisfies the initial notice requirements of sub. (1) if any of the following conditions are met:

Ins 25.10(4)(a) (a) The licensee may provide a revised policy notice, under s. Ins 25.20, that covers the customer’s new insurance product or service.

Ins 25.10(4)(b) (b) If the initial, revised or annual notice that the licensee most recently provided to that customer was accurate with respect to the new insurance product or service, the licensee does not need to provide a new privacy notice under sub. (1).

Ins 25.10(5) (5) Exceptions to allow subsequent delivery of notice.

Ins 25.10(5)(a) (a) A licensee may provide the initial notice required by sub. (1) (a) within a reasonable time after the licensee establishes a customer relationship if any of the following conditions exist:

Ins 25.10(5)(a)1. 1. Establishing the customer relationship is not at the customer’s election.

Ins 25.10(5)(a)2. 2. Providing notice not later than when the licensee establishes a customer relationship would substantially delay the customer’s transaction and the customer agrees to receive the notice at a later time.

Ins 25.10(5)(b) (b) The following are examples of when exceptions may or may not apply:

Ins 25.10(5)(b)1. 1. Establishing a customer relationship is not at the customer’s election if a licensee acquires or is assigned a customer’s policy from another financial institution or residual market mechanism and the customer does not have a choice about the licensee’s acquisition or assignment.

Ins 25.10(5)(b)2. 2. Providing notice not later than when a licensee establishes a customer relationship would substantially delay the customer’s transaction when the licensee and the individual agree over the telephone to enter into a customer relationship involving prompt delivery of the insurance product or service.

Ins 25.10(5)(b)3. 3. Providing notice not later than when a licensee establishes a customer relationship would not substantially delay the customer’s transaction when the relationship is initiated in person at the licensee’s office or through other means by which the customer may view the notice, such as on a web site.

Ins 25.10(6) (6) Delivery. When a licensee is required to deliver an initial privacy notice by this section, the licensee shall deliver it according to s. Ins 25.25. If the licensee uses a short-form initial notice for non-customers according to s. Ins 25.15 (4), the licensee may deliver its privacy notice according to s. Ins 25.15 (4) (c).

Ins 25.10 History History: Cr. Register, June, 2001, No. 546, eff. 7-1-01.

Ins 25.13 Ins 25.13 Annual privacy notice to customers required.

Ins 25.13(1) (1) Annual notice.

Ins 25.13(1)(a) (a) General rule. A licensee shall provide a clear and conspicuous notice to customers that accurately reflects its privacy policies and practices with regard to nonpublic personal financial information not less than annually during the continuation of the customer relationship. Annually means at least once in any period of twelve consecutive months during which that relationship exists. A licensee may define the twelve consecutive-month period, but the licensee shall apply it to the customer on a consistent basis.

Ins 25.13(1)(b) (b) Example. A licensee provides a notice annually if it defines the twelve consecutive-month period as a calendar year and provides the annual notice to the customer once in each calendar year following the calendar year in which the licensee provided the initial notice. For example, if a customer opens an account on any day of year 1, the licensee shall provide an annual notice to that customer by December 31 of year 2.

Ins 25.13(2) (2) Terminated customer.

Ins 25.13(2)(a) (a) Termination of customer relationship. A licensee is not required to provide an annual notice to a former customer. A former customer is an individual with whom a licensee no longer has a continuing relationship.

Ins 25.13(2)(b) (b) Examples. The following are examples of the termination of a customer relationship:

Ins 25.13(2)(b)1. 1. A licensee no longer has a continuing relationship with an individual if the individual no longer is a current policyholder of an insurance product or no longer obtains insurance services with or through the licensee.

Ins 25.13(2)(b)2. 2. A licensee no longer has a continuing relationship with an individual 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 customer about the relationship for a period of twelve consecutive months, other than to provide annual privacy notices, material required by law or regulation, or promotional materials.

Ins 25.13(2)(b)3. 3. For the purposes of this chapter, a licensee no longer has a continuing relationship with an individual if the individual’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 individual have been unsuccessful.

Ins 25.13(2)(b)4. 4. A licensee no longer has a continuing relationship with a customer in the case of providing real estate settlement services, at the time the customer completes execution of all documents related to the real estate closing, payment for those services has been received, or the licensee has completed all of its responsibilities with respect to the settlement, including filing documents on the public record, whichever is later.

Ins 25.13(3) (3) Delivery. When a licensee is required by this section to deliver an annual privacy notice, the licensee shall deliver it according to s. Ins 25.25.

Ins 25.13(4) (4) exceptions. The annual privacy notice requirement in this section does not apply when a licensee complies with either of the following:

Ins 25.13(4)(a) (a) When a licensee provides nonpublic personal financial information to any person described by s. Ins 25.50 (1) (a) 2.

Ins 25.13(4)(b) (b) When both of the following conditions are met:

Ins 25.13(4)(b)1. 1. The licensee provides nonpublic personal information only in accordance with the provisions of this chapter.

Ins 25.13(4)(b)2. 2. The licensee has not changed its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed in the licensee’s most recent disclosure to consumers in accordance with this section.

Ins 25.13 History History: Cr. Register, June, 2001, No. 546, eff. 7-1-01; CR 03-083: cr. (4) Register March 2004 No. 579, eff. 4-1-04; CR 17-039: am. (4) (title), renum and am. (4) to (4) (intro.), (a), cr. (4) (b), Register February 2018 No. 746 eff. 3-1-18.

Ins 25.15 Ins 25.15 Information to be included in privacy notices.

Ins 25.15(1) (1) General rule. The initial, annual and revised privacy notices that a licensee provides under ss. Ins 25.10, 25.13, and 25.20 shall include all of the following items of information, in addition to any other information the licensee wishes to provide, that applies to the licensee and to the consumers to whom the licensee sends its privacy notice:

Ins 25.15(1)(a) (a) The categories of nonpublic personal financial information that the licensee collects.

Ins 25.15 Note Note: See sample clause A-1 in Appendix A

Ins 25.15(1)(b) (b) The categories of nonpublic personal financial information that the licensee discloses.

Ins 25.15 Note Note: See sample clauses A-2 and A-3 in Appendix A

Ins 25.15(1)(c) (c) The categories of affiliates and nonaffiliated third parties to which the licensee discloses nonpublic personal financial information, other than those parties to whom the licensee discloses information under ss. Ins 25.55 and 25.60.

Ins 25.15 Note Note: See sample clauses A-2, A-3 and A-4 in Appendix A

Ins 25.15(1)(d) (d) The categories of nonpublic personal financial information about the licensee’s former customers that the licensee discloses and the categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information about the licensee’s former customers, other than those parties to whom the licensee discloses information under ss. Ins 25.55 and 25.60.

Ins 25.15 Note Note: See sample clauses A-2 and A-3 in Appendix A

Ins 25.15(1)(e) (e) If a licensee discloses nonpublic personal financial information to a nonaffiliated third party under s. Ins 25.50 (and no other exception in ss. Ins 25.55 and 25.60 applies to that disclosure), a separate description of the categories of information the licensee discloses and the categories of third parties with whom the licensee has contracted.

Ins 25.15 Note Note: See sample clauses A-5 in Appendix A

Ins 25.15(1)(f) (f) An explanation of the consumer’s right under s. Ins 25.30 (1) to opt out of the disclosure of nonpublic personal financial information to nonaffiliated third parties, including the methods by which the consumer may exercise that right at that time.

Ins 25.15 Note Note: See sample clauses A-6 in Appendix A

Ins 25.15(1)(g) (g) Any disclosures that the licensee makes under Section 603(d)(2)(A)(iii) of the federal Fair Credit Reporting Act (15 USC 1681a(d)(2)(A)(iii)) (that is, notices regarding the ability to opt out of disclosures of information among affiliates).

Ins 25.15(1)(h) (h) The licensee’s policies and practices with respect to protecting the confidentiality and security of nonpublic personal financial information.

Ins 25.15 Note Note: See sample clauses A-7 in Appendix A

Ins 25.15(1)(i) (i) Any disclosure that the licensee makes under sub. (2).

Ins 25.15(2) (2) Description of parties subject to exceptions. If a licensee discloses nonpublic personal financial information as authorized under ss. Ins 25.55 and 25.60, the licensee is not required to list those exceptions in the initial or annual privacy notices required by ss. Ins 25.10 and 25.13. When describing the categories of parties to whom disclosure is made, the licensee is required to state only that it makes disclosures to other affiliated or nonaffiliated third parties, as applicable, as permitted by law.

Ins 25.15(3) (3) Examples.

Ins 25.15(3)(a) (a) Categories of nonpublic personal financial information that the licensee collects. A licensee satisfies the requirement to categorize the nonpublic personal financial information it collects if the licensee categorizes it according to all of the following sources of the information:

Ins 25.15(3)(a)1. 1. Information from the consumer.

Ins 25.15(3)(a)2. 2. Information about the consumer’s transactions with the licensee or its affiliates.

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.