THE SENATE

S.B. NO.

2643

TWENTY-NINTH LEGISLATURE, 2018

S.D. 1

STATE OF HAWAII

H.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO INSURANCE.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Section 431:3A-201, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  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 shall be deemed to satisfy the initial notice requirements of subsection (a) if:

     (1)  The licensee provides a revised privacy notice, under section 431:3A-205, that covers the customer's new insurance product or service; or

     (2)  The initial, revised, or [annual] biennial notice that the licensee most recently provided to that customer was accurate with respect to the new insurance product or service, in which case the licensee does not need to provide a new privacy notice under subsection (a)."

     SECTION 2.  Section 431:3A-202, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§431:3A-202[]]  [Annual] Biennial privacy notice to customers required.  (a)  A licensee shall provide a clear and conspicuous notice to customers that accurately reflects its privacy policies and practices not less than [annually] biennially during the continuation of the customer relationship.  [Annually] For purposes of this section, "biennially" means at least once in any period of [twelve] twenty-four consecutive months during which that relationship exists.  A licensee may define the [twelve consecutive month] twenty-four-consecutive-month period, but the licensee shall apply it to the customer on a consistent basis.

     (b)  A licensee shall not be required to provide [an annual] a biennial notice to a former customer.  A former customer is an individual with whom a licensee no longer has a continuing relationship.

     (c)  If a licensee is required under this section to deliver [an annual] a biennial privacy notice, the licensee shall deliver it according to section 431:3A-206."

     SECTION 3.  Section 431:3A-203, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  The initial, [annual,] biennial, and revised privacy notices that a licensee provides under sections 431:3A-201, 431:3A-202, and 431:3A-205 shall include the following 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:

     (1)  The categories of nonpublic personal financial information that the licensee collects;

     (2)  The categories of nonpublic personal financial information that the licensee discloses;

     (3)  The categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal financial information, other than those parties to whom the licensee discloses information under sections 431:3A-402 and 431:3A-403;

     (4)  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 sections 431:3A-402 and 431:3A-403;

     (5)  A separate description of the categories of information the licensee discloses and the categories of third parties with whom the licensee has contracted, if a licensee discloses nonpublic personal financial information to a nonaffiliated third party under section 431:3A-401 and no other exception in sections 431:3A-402 and 431:3A-403 applies to that disclosure;

     (6)  An explanation of the consumer’s right under section 431:3A-301(a) 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;

     (7)  Any disclosures that the licensee makes under section 603(d)(2)(A)(iii) of the federal Fair Credit Reporting Act, Title 15 United States Code section 1681a(d)(2)(A)(iii), as amended;

     (8)  The licensee’s policies and practices with respect to protecting the confidentiality and security of nonpublic personal information; and

     (9)  Any disclosure that the licensee makes under subsection (b).

     (b)  If a licensee discloses nonpublic personal financial information under sections 431:3A-402 and 431:3A-403, the licensee is not required to list those exceptions in the initial or [annual] biennial privacy notices required by sections 431:3A-201 and 431:3A-202.  When describing the categories of parties to whom disclosure is made, the licensee shall state only that it makes disclosures to other affiliated or nonaffiliated third parties, as applicable, as permitted by law."

     SECTION 4.  Section 431:3A-206, Hawaii Revised Statutes, is amended as follows:

     1.  By amending subsection (b) to read:

     "(b)  A licensee may reasonably expect that a customer will receive actual notice of the licensee's [annual] biennial privacy notice if:

     (1)  The customer uses the licensee's web site to access insurance products and services electronically and agrees to receive notices at the web site and the licensee posts its current privacy notice continuously in a clear and conspicuous manner on the web site; or

     (2)  The customer has requested that the licensee refrain from sending any information regarding the customer relationship, and the licensee's current privacy notice remains available to the customer upon request."

     2.  By amending subsection (d) to read:

     "(d)  For customers only, a licensee shall provide the initial notice required by section 431:3A-201(a), the [annual] biennial notice required by section 431:3A-202(a), and the revised notice required by section 431:3A-205, so that the customer can retain them or obtain them later in writing or, if the customer agrees, electronically."

     3.  By amending subsection (f) to read:

     "(f)  If two or more consumers jointly obtain an insurance product or service from a licensee, the licensee may satisfy the initial, [annual,] biennial, and revised notice requirements of sections 431:3A-201(a), 431:3A-202(a), and 431:3A-205(a), by providing one notice to those consumers jointly."

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.

 

Report Title:

Insurance; Financial Information; Biennial Privacy Notice

 

Description:

Requires an insurer to provide privacy notices on a biennial basis rather than an annual basis.  (SB2643 HD1)

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.