TN Insurance Bulletin 16-05: Gramm-Leach-Bliley Act Annual Privacy Notices

BILL HASLAM GOVERNOR TO: STATE OF TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE 500 JAMES ROBERTSON PARKWAY NASHVILLE, TENNESSEE 37243-5065 615-741-6007 BULLETIN 16-05 All Tennessee Licensed Insurance Companies JULIE MIX McPEAK COMMISSIONER FROM: Julie Mix McPeak, Commissioner ~ "t; 1U, PtJt Gramm-Leach-Bliley Act Annual Privacy Notices September fl , 2016 RE: DATE: The purpose of this Bulletin is to set forth the views of the Department regarding recent amendments to the federal Gramm-Leach-Bliley Act (GLBA) to eliminate the requirement for redundant GLBA annual privacy notices. On December 4, 2015, the Fixing America's Surface Transportation (FAST) Act was enacted into law and effective immediately. The FAST Act includes amendments to the GLBA to eliminate the requirement for financial institutions to provide GLBA annual privacy notices, provided certain conditions are met. The amendments eliminate a duplicative and costly notification requirement. Financial institutions continue to be required to provide initial privacy notices as required under the GLBA. In line with the recent changes to the GLBA, this Bulletin is intended to clarify that a licensee of the Department, that is subject to the GLBA annual notice requirement, set forth in Tenn. Comp. R. & Regs. 0780-01-72-.06, is not required to provide the annual privacy notice required under Tenn. Comp. R. & Regs. 0780-01-72-.06 provided the licensee: (i) Provides nonpublic personal information to nonaffiliated third parties only in accordance with Tenn. Comp. R. & Regs. 0780-01-72-.14, .15, and .16; and (ii) Has not changed its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed in the most recent disclosure sent to consumers in accordance with Tenn. Comp. R. & Regs. 0780-01-72-.05 or .06. At any time a licensee fails to comply with any of the criteria described in paragraph (i) or (ii), the licensee shall be required to provide the annual privacy notice required under Tenn. Comp. R. & Regs. 0780-01-72-.06. Also, all licensees shall continue to be required to provide GLBA initial privacy notices as required under Tenn. Comp. R. & Regs. 0780-01-72-.05. Any questions regarding the intent of this Bulletin should be directed to the Insurance Division's Policy Analysis Section, 61h Floor, Davy Crockett Tower, 500 James Robertson Parkway, Nashville, Tennessee, 37243, and/or (615) 741-2825. 2