38.2-604 - Notice of information collection and disclosure practices.
§ 38.2-604. Notice of information collection and disclosure practices.
A. An insurance institution or agent shall provide a notice of insuranceinformation practices to all applicants or policyholders in connection withinsurance transactions as provided in this section:
1. In the case of an application for insurance a notice shall be provided nolater than:
a. At the time of the delivery of the insurance policy or certificate whenpersonal information is collected only from the applicant or from publicrecords;
b. At the time the collection of personal information is initiated whenpersonal information is collected from a source other than the applicant orpublic records; or
c. Notwithstanding the provisions of subdivision 1 b of subsection A, when anapplication for insurance is made by telephone and personal information iscollected from a source other than the applicant or public records, thenotice of insurance information practices may be given orally at the time ofapplication, provided that, if a policy is issued, such notice is given inwriting or, if the applicant agrees, in electronic format, no later than atthe time of the delivery of the insurance policy or certificate.
2. In the case of a policy renewal, a notice shall be provided no later thanthe policy renewal date, except that no notice shall be required inconnection with a policy renewal if:
a. Personal information is collected only from the policyholder or frompublic records; or
b. A notice meeting the requirements of this section has been given withinthe previous 24 months; or
3. In the case of a policy reinstatement or change in insurance benefits, anotice shall be provided no later than the time a request for a policyreinstatement or change in insurance benefits is received by the insuranceinstitution, except that no notice shall be required if personal informationis collected only from the policyholder or from public records.
B. The notice required by subsection A of this section shall be in writingor, if the applicant or policyholder agrees, in electronic format, and shallstate:
1. Whether personal information may be collected from persons other than anindividual proposed for coverage;
2. The types of personal information that may be collected and the types ofsources and investigative techniques that may be used to collect suchinformation;
3. The types of disclosures made under subdivisions 1, 2, 3, 4, 5, 8, 10, and12 of subsection B and subdivision 2 of subsection C of § 38.2-613 and thecircumstances under which such disclosures may be made without priorauthorization, however only those circumstances need be described that occurwith such frequency as to indicate a general business practice;
4. A description of the rights established under §§ 38.2-608 and 38.2-609 andthe manner in which those rights may be exercised; and
5. That information obtained from a report prepared by an insurance-supportorganization may be retained by the insurance-support organization anddisclosed to other persons.
C. Instead of the notice prescribed in subsection B of this section, theinsurance institution or agent may provide an abbreviated notice in writingor, if the applicant or policyholder agrees, in electronic format, informingthe applicant or policyholder that:
1. Personal information may be collected from persons other than anindividual proposed for coverage;
2. The information, as well as other personal or privileged informationsubsequently collected by the insurance institution or agent, in certaincircumstances, may be disclosed to third parties without authorization;
3. A right of access and correction exists with respect to all personalinformation collected; and
4. The notice prescribed in subsection B of this section will be furnished tothe applicant or policyholder upon request.
D. The obligations imposed by this section upon an insurance institution oragent may be satisfied by another insurance institution or agent authorizedto act on its behalf.
E. An insurance agent shall not be subject to the requirements of thissection in any instance where the insurance institution on whose behalf theagent is acting otherwise complies with the requirements contained herein,and the agent does not disclose any personal information to any person otherthan the insurance institution or its affiliates, or as permitted by §38.2-613.
F. [Repealed.]
G. An insurance agent seeking to place coverage on behalf of a currentpolicyholder shall be deemed to be in compliance with the requirements ofthis section in any instance where the agent has provided the notice requiredby this section within the previous 12 months.
(1981, c. 389, § 38.1-57.7; 1986, c. 562; 2001, c. 371; 2002, c. 76; 2003, c.266.)