§ 58-39-25. Notice of insurance information practices. - North Carolina Statutes

§ 58‑39‑25. Notice of insurance information practices.

(a)        An insuranceinstitution or agent shall provide a notice of information practices to allapplicants or policyholders in connection with insurance transactions asprovided in this section:

(1)        In the case of anapplication for insurance a notice shall be provided no later than:

a.         At the time of thedelivery of the insurance policy or certificate when personal information iscollected only from the applicant or from public records; or

b.         At the time thecollection of personal information is initiated when personal information iscollected from a source other than the applicant or public records;

(2)        In the case of apolicy renewal, a notice shall be provided no later than the policy renewaldate, except that no notice shall be required in connection with a policyrenewal if:

a.         Personal informationis collected only from the policyholder or from public records; or

b.         A notice meeting therequirements of this section has been given within the previous 24 months; or

(3)        In the case of apolicy reinstatement or change in insurance benefits, a notice shall beprovided no later than the time a request for a policy reinstatement or changein insurance benefits is received by the insurance institution, except that nonotice shall be required if personal information is collected only from thepolicyholder or from public records.

(b)        The notice requiredby subsection (a) of this section shall be in writing and shall state:

(1)        Whether personalinformation may be collected from persons other than the individual orindividuals proposed for coverage;

(2)        The types ofpersonal information that may be collected and the types of sources andinvestigative techniques that may be used to collect such information;

(3)        The types ofdisclosures identified in subsections (2), (3), (4), (5), (6), (9), (11), (12),and (14) of G.S. 58‑39‑75 and the circumstances under which suchdisclosures may be made without prior authorization: Provided, however, onlythose circumstances need be described that occur with such frequency as toindicate a general business practice;

(4)        A description of therights established under G.S. 58‑39‑45 and 58‑39‑50 andthe manner in which such rights may be exercised; and

(5)        That informationobtained from a report prepared by an insurance‑support organization maybe retained by the insurance‑support organization and disclosed to otherpersons.

(c)        In lieu of thenotice prescribed in subsection (b) of this section, the insurance institutionor agent may provide an abbreviated notice informing the applicant orpolicyholder that:

(1)        Personal informationmay be collected from persons other than the individual or individuals proposedfor coverage;

(2)        Such information, aswell as other personal or privileged information subsequently collected by theinsurance institution or agent, in certain circumstances, may be disclosed tothird parties without authorization;

(3)        A right of accessand correction exists with respect to all personal information collected; and

(4)        The noticeprescribed in subsection (b) of this section will be furnished to the applicantor policyholder upon request.

(d)        The obligationsimposed by this section upon an insurance institution or agent may be satisfiedby another insurance institution or agent authorized to act on its behalf. (1981, c. 846, s. 1; 2003‑262,s. 2(1).)