SENATE BILL No. 950

 

 

April 18, 2018, Introduced by Senators STAMAS, SCHMIDT, HORN, JONES, MARLEAU, BRANDENBURG, HUNE and ANANICH and referred to the Committee on Insurance.

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 513 (MCL 500.513), as added by 2001 PA 24.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 513. (1) A Except as otherwise provided in subsection

 

(2), a licensee shall provide a clear and conspicuous notice to

 

customers that accurately reflects its privacy policies and

 

practices not less than annually during the continuation of the

 

customer relationship. As used in this section, subsection,

 

"annually" means at least once in any period of 12 consecutive

 

months during which that customer relationship exists. A licensee

 

may define the 12-consecutive-month period, but the licensee shall

 

apply it to the customer on a consistent basis.

 


     (2) A licensee is not required to provide an annual notice

 

under subsection (1) if all of the following apply:

 

     (a) The licensee only provides nonpublic personal information

 

to a nonaffiliated third party under section 535, 537, or 539.

 

     (b) The licensee's privacy policies and practices about

 

disclosing nonpublic personal information has not changed from the

 

previous notice the licensee provided to the customer under

 

subsection (1) or section 511.

 

     (3) (2) A licensee is not required to provide an annual notice

 

under subsection (1) to a former customer.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.