| (a) The following examples illustrate situations where a consumer
has a continuing relationship with a covered entity:
(1) the consumer is a current policyholder of an insurance
product issued by or through the covered entity; or
(2) the consumer obtains financial, investment or economic
advisory services relating to an insurance product or service from the covered
entity for a fee.
(b) The following examples illustrate situations where a consumer
does not have a continuing relationship with a covered entity:
(1) the consumer applies for insurance but does not purchase
the insurance;
(2) the covered entity sells the consumer insurance in an isolated
transaction involving single-event types of coverage including, but not limited
to, auto rental liability, travel, and short-term non-resident auto liability
insurance;
(3) the individual is no longer a current policyholder of an
insurance product or no longer obtains insurance services with or through
the covered entity;
(4) the consumer is a beneficiary or claimant under a policy
even though the consumer has submitted a claim under a policy choosing a settlement
option involving an ongoing relationship with the covered entity;
(5) the consumer is a beneficiary or a claimant under a policy
and has submitted a claim under that policy choosing a lump sum settlement
option;
(6) the customer's policy is lapsed, expired, or otherwise
not in force, and the covered entity has not communicated with the customer
about the relationship for a period of 12 consecutive months, other than annual
privacy notices, material required by law or regulation, communication at
the direction of a state or federal authority, or promotional materials;
(7) the individual is an insured or an annuitant under an insurance
policy or annuity, respectively, but is not the policyholder or owner of the
insurance policy or annuity; or
(8) the individual's last known address according to the covered
entity's records is deemed invalid, which occurs when:
(A) mail sent to that address by the covered entity has been
returned by the postal authorities as undeliverable, and
(B) subsequent attempts by the covered entity to obtain a current
valid address for the individual have been unsuccessful.
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