Section 26-A3602. ANNUAL PRIVACY NOTICE TO CUSTOMERS REQUIRED

 

3602.1A licensee shall provide a clear and conspicuous notice to all customers for whom the licensee possesses the name and address that accurately reflects the licensee's privacy policies and practices not less than annually during the continuation of the customer relationship. Annually means at least once during any period of 12 consecutive months during which that relationship exists. A licensee may define the 12 consecutive month period, but the licensee shall apply it to the customer on a consistent basis.

 

3602.2A licensee shall provide the annual notice required by § 3602.1 to a customer using a means permitted for providing the initial notice to that customer under § 3601.

 

3602.3A licensee is not required to provide an annual notice to a customer with whom it no longer has a continuing relationship.

 

3602.4A licensee no longer has a continuing relationship with an individual if:

 

(a)The insurance policy has been declared dormant under the insurance company's policies;

 

(b)The licensee sells the insurance policy without retaining any continuing income;

 

(c)The licensee no longer provides any statements or notices to the consumer concerning that relationship;

 

(d)For other types of relationships, a licensee has not communicated with the consumer about the relationship for a period of 12 consecutive months, other than to provide annual notices of privacy policies and practices;

 

(e)For the purposes of this regulation, a licensee no longer has a continuing relationship with an individual if the individual's last known address according to the licensee's records is deemed invalid. An address of record is deemed invalid if mail sent to that address by the licensee has been returned by the postal authorities as undeliverable and if subsequent attempts by the licensee to obtain a current valid address for the individual have been unsuccessful; or

 

(f)A licensee no longer has a continuing relationship with a customer in the case of providing real estate settlement services, at the time the customer completes execution of all documents related to the real estate closing, payment for those services has been received, or the licensee has completed all of its responsibilities with respect to the settlement, including filing documents on the public record, whichever is later.

 

3602.5The licensee shall have presented the information in the notice required in this section in clear, concise sentences, paragraphs and sections, if the notice is written:

 

(a)Using short explanatory sentences or bulleted lists, whenever possible;

 

(b)Using definite, concrete, everyday words and active voice whenever possible;

 

(c)Avoiding the use of multiple negatives;

 

(d)Avoiding the use of legal and highly technical business terminology whenever possible; and

 

(e)Avoiding the use of boilerplate explanations that are imprecise and readily subject to different interpretations.

 

3602.6A licensee shall have designed its notice to call attention to the nature and significance of the information contained in the notice, if the notice is written:

 

(a)Using a plain-language heading to call attention to the notice;

 

(b)Using a typeface and type size that are easy to read; and

 

(c)Providing wide margins and ample line spacing.

 

3602.7If a licensee provides a notice on the same form as another notice or other document, it shall have designed the notice to call attention to the nature and significance of the information contained in the notice, if the notice is written using:

 

(a)Larger type size(s), boldface or italics in the text;

 

(b)Wider margins and line spacing in the notice; and

 

(c)Shading or sidebars to highlight the notice, whenever possible.

 

3602.8If a licensee provides a notice on a web page, it shall have designed the notice to call attention to the nature and significance of the information contained in the notice, the notice is written:

 

(a)Using text or visual cues to encourage scrolling down the page if necessary to view the entire notice;

 

(b)Ensuring that other elements on the web site such as text, graphics, hyperlinks, or sound do not distract attention from the notice; and

 

(c)Placing the notice on a screen that consumers frequently access, such as a home page or a page on which transactions are conducted; or

 

(d)Placing a link on a screen that consumers frequently access, such as a home page or a page on which transactions are conducted, that connects directly to the notice and is labeled appropriately to convey the importance, nature, and relevance of the notice.

 

3602.9The annual notice required under this section may be provided by an affiliate as long as the notice clearly identifies all licensees or affiliates to which the notice applies, and complies with all other provisions of these regulations.

 

source

Emergency Rulemaking published at 47 DCR 9052(November 10, 2000) [EXPIRED]; Emergency Rulemaking published at 48 DCR 2356(March 16, 2001) [EXPIRED]; as Emergency Rulemaking published at 48 DCR 6119(July 1, 2001) [EXPIRED]; as Final Rulemaking published at 48 DCR 8005 (August 24, 2001).