Notice to consumers regarding request for authorization

1. a. Form of notice. If a licensee is required to provide notice under subsection 1 of section 45-14-01-11, it shall provide a clear and conspicuous notice to each of its consumers that accurately explains the right to authorize disclosures under that section. The notice shall state: (1) That the licensee may only disclose nonpublic personal financial information about its consumer to a nonaffiliated third party if the licensee first obtains authorization from the consumer; and (2) That the consumer has the right to authorize or not to authorize that disclosure. b. Examples: Adequate notice. A licensee provides adequate notice that the consumer has the right to authorize or not to authorize the disclosure of nonpublic personal financial information to a nonaffiliated third party if the licensee: (1) Identifies all of the categories of nonpublic personal financial information that it will disclose if authorization is obtained, and all of the categories of nonaffiliated third parties to which the licensee discloses the information, as described in subdivisions b and c of subsection 1 of section 45-14-01-07, and states that the consumer has the right to authorize or not to authorize the disclosure of that information; and (2) Identifies the insurance products or services that the consumer obtains from the licensee, either singly or jointly, to which the authorization would apply. 2. Same form as initial notice permitted. A licensee may provide the request for authorization together with or on the same written or electronic form as the initial notice the licensee provides in accordance with section 45-14-01-05. 3. Initial notice required when request for authorization delivered subsequent to initial notice. If a licensee provides the notice to consumers regarding request for authorization later than required for the initial notice in accordance with section 45-14-01-05, the licensee shall also include a copy of the initial notice with the notice regarding request for authorization in writing or, if the consumer agrees, electronically. 4. Joint relationships: a. If two or more consumers jointly obtain an insurance product or service from a licensee, the licensee may provide a single notice to the joint consumers. The licensee's notice shall explain how the licensee will treat an authorization by a joint consumer, as explained in subdivision b. b. 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: (1) Send a single authorization notice to John's address. (2) Permit John and Mary to make different authorizations, provided if John provides authorization and Mary does not, the licensee may only disclose nonpublic personal financial information about John, but not about Mary and not about John and Mary jointly. 5. Duration of consumer's authorization. An authorization must specify the length of time for which the authorization is valid. 6. Delivery. When a licensee is required to deliver a notice by this section, the licensee shall deliver it according to section 45-14-01-10.