| (a) The term consumer includes, but is not limited to:
(1) an individual who provides nonpublic personal financial
information to a covered entity in connection with obtaining or seeking to
obtain financial, investment or economic advisory services relating to an
insurance product or service regardless of whether the covered entity establishes
an ongoing relationship.
(2) an applicant for insurance prior to the inception of insurance
coverage.
(3) an individual, if the covered entity discloses nonpublic
personal financial information about the individual to a nonaffiliated third
party other than as permitted under §22.17 of this title (relating to
Exception to Opt Out Requirements for Disclosure of Nonpublic Personal Financial
Information for Service Providers and Joint Marketing), §22.18 of this
title (relating to Exceptions to Notice and Opt Out Requirements for Disclosure
of Nonpublic Personal Financial Information for Processing and Servicing Transactions)
and §22.19 of this title (relating to Other Exceptions to Notice and
Opt Out Requirements for Disclosure of Nonpublic Personal Financial Information),
and:
(A) the individual is a beneficiary of a life insurance policy
underwritten by the covered entity;
(B) the individual is a claimant under an insurance policy
issued by the covered entity;
(C) the individual is an insured or an annuitant under an insurance
policy or an annuity, respectively, issued by the covered entity; or
(D) the individual is a mortgagor of a mortgage covered under
a mortgage insurance policy.
(b) Examples of when individuals will not be considered consumers
of a covered entity:
(1) an individual who is a consumer of another financial institution
is not a covered entity's consumer solely because the covered entity is acting
as agent for, or provides processing or other services to, that financial
institution.
(2) an individual is not a covered entity's consumer solely
because he or she is a beneficiary of a trust for which the covered entity
is a trustee.
(3) an individual is not a covered entity's consumer solely
because he or she has designated the covered entity as trustee for a trust.
(c) Special requirements for employee benefit plans, group
or blanket insurance policies, group annuity contracts, or workers' compensation
policies.
(1) An individual who is a participant or a beneficiary of
an employee benefit plan that a covered entity administers or sponsors or
for which the covered entity acts as a trustee, insurer or fiduciary is not
the consumer of a covered entity that:
(A) provides all initial, annual and revised notices required
by this subchapter to the employer or other entity establishing the plan;
and
(B) does not disclose nonpublic personal financial information
about the individual to a nonaffiliated third party other than as permitted
under §§22.17, 22.18, and 22.19 of this title.
(2) An individual who is covered under a group or blanket insurance
policy or group annuity contract issued by a covered entity is not the consumer
of a covered entity that:
(A) provides all initial, annual and revised notices required
by this subchapter to the policyholder or contractholder; and
(B) does not disclose nonpublic personal financial information
about the individual to a nonaffiliated third party other than as permitted
under §§22.17, 22.18, and 22.19 of this title.
(3) An individual that is a claimant under or beneficiary of
a workers' compensation policy issued by a covered entity is not the consumer
of a covered entity that:
(A) provides all initial, annual and revised notices required
by this subchapter to the plan participant; and
(B) does not disclose nonpublic personal financial information
about the individual to a nonaffiliated third party other than as permitted
under §§22.17, 22.18, and 22.19 of this title.
(d) An individual described in subsection (c) of this section
is the consumer of a covered entity that does not comply with the applicable
notice and nondisclosure requirements of that subsection.
(e) In no event shall an individual, solely by virtue of his
status described in subsection (c) of this section, be deemed to be the customer
of a covered entity for purposes of this subchapter.
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