38.2-612.1 - Special requirements for providing financial information to nonaffiliated third parties.
§ 38.2-612.1. Special requirements for providing financial information tononaffiliated third parties.
A. Except as otherwise provided in § 38.2-613, no insurance institution,agent, or insurance-support organization may, directly or through anaffiliate, disclose to a nonaffiliated third party financial informationabout an individual collected or received in connection with an insurancetransaction, unless:
1. The individual has been given a clear and conspicuous notice in writing,or in electronic form if the individual agrees, stating that such financialinformation may be disclosed to such nonaffiliated third party;
2. The individual is given an opportunity, before such financial informationis initially disclosed, to direct that such information not be disclosed, andin no case shall the individual be given less than 30 days from the date ofnotice to direct that such information not be disclosed;
3. The individual is given a reasonable means by which to exercise the rightto direct that such information not be disclosed as well as an explanationthat such right may be exercised at any time and that such right remainseffective until revoked by the individual; and
4. The nonaffiliated third party agrees not to disclose such financialinformation to any other person unless such disclosure would otherwise bepermitted by this chapter if made by the insurance institution, agent, orinsurance-support organization.
B. 1. No insurance institution, agent, or insurance-support organization maydisclose to a nonaffiliated third party, directly or through an affiliate,other than to a consumer reporting agency, a policy number or similar form ofaccess number or transaction account of a policyholder or applicant for usein telemarketing, direct mail marketing or other marketing through electronicmail to an applicant or policyholder, other than to:
a. An agent or other person solely for the purpose of marketing the insuranceinstitution's own products or services as long as the agent or other personis not authorized to directly initiate charges to the account; or
b. A participant in a private label credit card program or an affinity orsimilar program where the participants in the program are identified to thepolicyholder or applicant at the time the policyholder or applicant entersthe program.
2. A policy or transaction account shall not include an account to whichthird parties cannot initiate charges.
C. No insurance institution or agent shall unfairly discriminate against anindividual because (i) the individual has directed that his personalinformation not be disclosed pursuant to subsection A of this section or (ii)the individual has refused to grant authorization of the disclosure of hisprivileged information or medical record information by an insuranceinstitution, agent or insurance support organization pursuant to subsection Aof § 38.2-613.
D. The requirements of subsection A of this section may be satisfied byproviding a single notice if two or more applicants or policyholders jointlyobtain or apply for an insurance product. Such notice shall allow oneapplicant or policyholder to direct that financial information not bedisclosed to nonaffiliated third parties on behalf of all of the jointapplicants or policyholders, provided that each applicant or policyholder mayseparately direct that his financial information not be disclosed tononaffiliated third parties.
E. An insurance agent shall not be subject to the requirements of subsectionA of this section in any instance where the insurance institution on whosebehalf the agent is acting otherwise complies with the requirements containedherein, and the agent does not disclose any financial information to anyperson other than the insurance institution or its affiliates, or aspermitted by § 38.2-613.
F. 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.
(2001, c. 371; 2003, c. 266.)