Under the Financial Privacy rule, when must insurers provide consumers with a privacy notice?

• A. At the time the consumer relationship is established and annually thereafter.
• B. Only at policy issue.
• C. Only once, at enrollment.
• D. Whenever the consumer requests it.

Answer: (A)

Under the Financial Privacy Rule, insurers must keep customers informed about their privacy practices by providing a privacy notice when the consumer relationship is established and then every year after that. This ongoing notice ensures you know what information is collected, how it’s used, with whom it’s shared, and how you can exercise your opt-out rights. It isn’t just at policy issue or only once at enrollment, and it isn’t conditional on a request. If the insurer changes its information-sharing practices in a material way, a new notice must also be provided. So you’d receive the notice at the start of your relationship and again each year thereafter.