THE SENATE

S.B. NO.

2643

TWENTY-NINTH LEGISLATURE, 2018

S.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO INSURANCE.

 

 

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

 

     SECTION 1.  The legislature finds that Hawaii law requires insurers to send annual privacy notices to all individuals covered by a group policy rather than to just the group policyholder, which results in insurers spending an extraordinary amount of time sending notices to individuals in the State.

     The purpose of this Act is to clarify the requirements for additional privacy notices that an insurer must send by:

     (1)  Permitting an insurer to send a privacy notice every five years, if the relationship between the insurer and a customer is renewed annually or less than annually and the insurer has not changed its policies and practices regarding disseminating customers' nonpublic personal financial information to nonaffiliated third parties;

     (2)  Requiring an insurer to provide an additional privacy notice upon renewal of a relationship between an insurer and a customer that lasts longer than a year; and

     (3)  Requiring an insurer that changes its policies and practices to send an additional notice to customers after the change to the policies and practices.

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

     "[[]§431:3A-202[]  Annual] Additional 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 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.] For a customer relationship between a licensee and a customer that is renewed annually or less than annually, a licensee may provide a clear and conspicuous notice to customers that accurately reflects its privacy policies and practices every five years, if the licensee:

     (1)  Has provided nonpublic personal financial information to nonaffiliated third parties in accordance with section 431:3A-401, 431:3A-402, or 431:3A-403; and

     (2)  Has not changed its policies and practices relating to the disclosure of nonpublic personal financial information from the most recent notice sent to customers in accordance with this section or section 431:3A-201.

     (b)  For a customer relationship between a licensee and a customer that lasts longer than a year and is renewed, a licensee shall provide an additional clear and conspicuous notice to the customer upon the renewal of the customer relationship that accurately reflects the licensee's privacy policies and practices.

     (c)  A licensee that changes its policies and practices relating to the disclosure of nonpublic personal financial information from the most recent notice sent to customers in accordance with this section or section 431:3A-201 shall send an additional clear and conspicuous notice to the customer after the change to the policies and practices that accurately reflects the licensee's updated privacy policies and practices.

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

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

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

 

 

Report Title:

Insurance; Financial Information; Privacy Notice; Policies and Practices

 

Description:

Permits an insurer to send a privacy notice every five years, if the relationship between the insurer and a customer is renewed annually or less than annually and the insurer has not changed its policies and practices regarding disseminating customers' nonpublic personal financial information to nonaffiliated third parties.  Requires an insurer to provide an additional privacy notice upon renewal of a relationship between an insurer and a customer that lasts longer than a year.  Requires an insurer that changes its policies and practices to send an additional notice to customers after the change to the policies and practices.  Effective 7/1/2050.  (SD1)

 

 

 

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