ffACLI 

Financial Seccmv. For Ufe. 

Roberta Meyer 

Vice President ft Associate General Counsel 

(202) 624-2184 t (202) 572-4808 f 

robbiemeyer@acli. com 

May 29,2007 

Via Electronic Submission 

Robert E. Feldman 

Executive Secretary 

Federal Deposit Insurance Corporation 

550 17th Street, N.W. 

Washington, D.C. 20429 

Attention: Comments 

federal Trade Commission 

Office of the Secretary 

Room H-135 (Annex C) 

600 Pennsylvania Avenue, N.W. 

Washington, D.C. 20580 

FTC File No. P034815 

Regulation Comments 

Chief Counsel's Office 

Office ofThrift Supervision 

1700 G Street, N.W. 

Washington, D.C. 20552 

Attention: OTS-2007-0005 

Eileen Donovan 

Secretary of the Commission 

Commodity Futures Trading Commission 

Administration 

Three Lafayette Centre 

1155 21st Street, N.W. 

Washington, D.C. 20581 

r"l 0 , •• ")7 1'\r .. j' • ~ .' • ' '/ J • _..l 

Or C. 0 -- ·, .~ ~C ETl .. 

Nancy M. Morris 

Secretary 

Received CFTC 

Records Section P~I.J() /o1 

Securities and Exchange Commission 

100 F Street, N.E. 

Washington, D.C. 20549 

File No. S7-09-07 

Jennifer Johnson 

Secretary of the Board 

Federal Reserve Board 

20th and C Streets, N.W. 

Washington, D.C. 20551 

Docket No. R-1280 

Office of the Comptroller of the Currency 

250 E Street, S.W. 

Mail Stop 1-5 

Washington, D.C. 20219 

Docket Number OCC-2007-0003 

Mary Rupp 

Secretary of the Board 

National Credit Union 

1775 Duke Street 

Alexandria, Virginia 22314 

Proposed Rule Part 716 

Re: Proposed Model Privacy Form 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001-2133 

www.acli.com 
Ladies and Gentlemen: 

The American Council of Life Insurers {"ACLI") is pleased to provide these comments in connection 

with the Interagency Proposal for Model Privacy Form (the "Model Form") under the Gramm-LeachBliley Act ("GLB Act") jointly issued by the Federal agencies 1 (the "Agencies"). 2 ACLI is the principal 

trade association of life insurance companies, whose 373 life insurance companies account for 93 

percent of the industry's total assets, 91 percent of life insurance premiums and 95 percent of annuity 

considerations. ACLI members are also major participants in the pension, long term care insurance, 

disability income insurance and reinsurance markets. 

The Financial Services Regulatory Relief Act of2006 (the "Regulatory Relief Act") directs the 

Agencies to jointly develop a model form that may be used at the option of financial institutions to 

provide initial and annual privacy notices under section 503 of the GLB Act. 3 The Regulatory Relief 

Act amends section 503 of the GLB Act to require that the model form must be comprehensible, with a 

clear format and design, provide for clear and conspicuous disclosures, and enable consumers to easily 

identify the sharing practices of financial institutions and compare privacy practices among financial 

institutions.

4 The Regulatory Relief Act further amends section 503 of the GLB Act to provide that any 

financial institution that elects to use the model form develored by the agencies shall be deemed to be in 

compliance with the disclosures required under that section. 

LIFE INSURANCE INDUSTRY'S INTEREST 

Section 503(a) of the GLB Act requires financial institutions to provide initial and annual privacy 

notices to customers. 6 Life insurers are financial institutions under the GLB Act because they are 

engaged in financial activities as defined in § 4(k) of the Bank Holding Company Act. 7 Accordingly, if 

a life insurer uses the Model Form developed by the agencies, as provided for in the amendments to the 

GLB Act made by the Regulatory Relief Act, the insurer will be deemed to be in compliance with the 

initial and annual disclosure requirements of the GLB Act. Moreover, many life insurers are affiliated 

with other financial institutions such as broker-dealers regulated by the SEC and depository institutions 

regulated by the Federal bank supervisory agencies. The Agencies' proposed Model Form, therefore 

will directly affect ACLI member companies. Many of these affiliated companies find it efficient to 

send customers one uniform privacy notice that reflects the privacy policies of the affiliated group of 

companies. Accordingly, we believe that it is appropriate for us to comment on the Model Form 

because of the possible effect it will have on life insurers. 

INTRODUCTION 

ACLI believes that the goal of providing financial institutions the opportunity to simplify privacy 

notices is a worthy objective. Consumers should find simplified notices more understandable and more 

useful by enabling them to make more informed choices. We appreciate the Agencies efforts to develop 

a more meaningful model privacy form. ACLI believes that the development of a model form 

1 72 Fed. Reg. 14940 (March 29, 2007). 2 Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Trade Commission, Office of 

Thrift Supervision, Federal Deposit Insurance Corporation, Securities and Exchange Commission, National Credit Union 

Administration and the Commodity Futures Trading Commission. 3 Section 728 of the Financial Services Regulatory Relief Act of2006, Pub. L. 109-351, 120 Stat. 1966. 4 15 U.S.C. § 6803(e)(2). 5 15 U.S.C. § 6803(e)(4). 6 15 U.S.C. § 6803(a). 7 12 U.S.C. § 1843(k)(4(B). 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001-2133 

www.acli.com 

2 
represents a positive step toward achieving the goals Congress established in the Regulatory Relief Act. 

A model form should facilitate the ability of consumers to better comprehend and compare financial 

institutions' privacy policies and practices. 

To enable life insurers to use the Model Form proposed by the Agencies, ACLI believes that the 

Agencies need to take into account unique aspects of life insurers' information collection and sharing 

practices as well as the fact that life insurers must accommodate various state privacy and disclosure 

requirements that differ from the GLB Act requirements. The Model Form and proposal currently do not 

provide flexibility to permit life insurers to address their unique practices or varying state requirements. 

In addition, the GLB Act eliminated the walls between banking, securities, and insurance by allowing 

the merger of these types of businesses under a single holding company. The privacy notices required 

under Section 503(a) of the GLB Act should not create barriers to these entities working together, since 

the GLB Act was clearly intended to permit and foster such activity. Therefore, privacy notices that 

accommodate this type of holding company should be permitted, and given safe harbor under the 

Agencies' rules, so that life insurers that are part of diversified financial institution holding companies 

are permitted to use a single uniform privacy notice that reflects the privacy policies of the affiliated 

group of companies. 

Accordingly, ACLI urges the Agencies to permit life insurers that use the Model Form with the 

prescribed format: (i) to make limited modifications to the language, by omitting inapplicable 

provisions, or adding additional bullets, boxes, or footnotes; or (ii) to include supplemental materials 

with the Model Form to make their notices accurately reflect life insurance industry practices and 

comply with state insurance privacy laws, without losing the safe harbor. In addition, ACLI urges the 

regulators to modify certain parts of the Model Form to make specific generic changes, generally 

applicable to financial institutions, to also make the form more reflective of life insurance industry 

practices and state insurance privacy laws. ACLI's views regarding parts of the Model Form in 

connection with which life insurers should be permitted to make modifications and our specific 

recommended language changes are explained below. The recommended language changes are also 

reflected in the attached mark-up of the Model Form. By permitting limited modifications and making 

certain language changes to the Model Form, the Agencies will enable life insurers to make use ofthe 

Model Form and facilitate the ability of life insurers that are part of diversified holding companies to use 

a single notice, in line with the clear intent of the GLB Act. 

In addition, ACLI believes that in certain instances, the proposal imposes operational burdens that 

appear to be unnecessary to achieving the goals Congress established in the Regulatory Relief Act. 

Providing life insurers and other financial institutions with additional operational flexibility, as 

discussed below, will enhance the usefulness of the Model Form without diminishing its importance and 

value to consumers. 

Under the Agencies' current GLB Act privacy regulations, financial institutions obtain a safe harbor by 

using the sample clauses set forth in the regulations. The Agencies propose to eliminate this safe harbor 

after a one-year transition date. ACLI strongly objects to the elimination of the safe harbor for 

institutions that use the sample clauses. 

As the Agencies are aware, the GLB Act assigns jurisdiction over insurers to the state insurance 

authorities. A majority of states have adopted laws and regulations that are substantially similar to the 

language adopted by the Agencies in their GLB Act regulations. Generally, state regulations provide a 

safe harbor similar to that provided by the Agencies in their current regulations. 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001·2133 

www.acti.com 

3 
Life insurers and other financial institutions have invested significant resources in fine-tuning their 

privacy notices to comply with the GLB Act, the Agencies' rules, and related state laws, where 

applicable. If the Agencies have deemed notices to be in compliance with the GLB Act because they 

used the sample clauses the Agencies developed, it seems that the notices should continue to be deemed 

to be in compliance -- regardless of the fact that the Agencies have developed a Model Form. Because 

use of the Model Form is voluntary, there is no reason why the Agencies should punish a financial 

institution that chooses not to use the Model Form. Nor should companies be forced to choose between 

a safe harbor under federal regulations and compliance with state privacy laws. Accordingly, ACLI 

urges that the Agencies maintain the existing safe harbor for institutions that use the sample clauses. 

MODEL FORM 

"WHAT DOES{ }DO WITH YOURPERSONALINFORMATION?" 

Page one of the Model Form permits a financial institution to include the name of the financial 

institution or the group of affiliated institutions providing the notice. ACLI strongly agrees that 

affiliated institutions should be permitted to adopt a single privacy notice. However, in view of the 

limited space provided and the fact that in many instances the names of affiliates are not similar, ACLI 

believes that consumers may not understand which institutions are sending the Model Form. To reduce 

the likelihood of this occurring, ACLI believes that financial institutions should be permitted to indicate 

on the Model Form the names of the affiliated institutions covered by the policy without losing the safe 

harbor. This could be accomplished through the use of a footnote or a listing on the reverse side of the 

Model Form. 

"WHAT?" 

Information Collected 

On page one ofthe Model Form, the section entitled "What?" sets out the types of information financial 

institutions collect and share. Financial institutions are not permitted to change the language appearing 

in this section. In order for this section to accurately reflect the types of information life insurers collect, 

ACLI urges that they be permitted to include additional bullets that reflect types of information they 

collect and to delete inapplicable bullets without losing the safe harbor. For example, life insurers 

should be permitted to add a bullet relating to medical information since life insurers collect medical 

information to perform fundamental life insurance business functions, such as underwriting and claims 

evaluations. 

In order to reflect the practices of the insurance industry, ACLI also recommends the following specific 

adjustments to this section: 

A new bullet should be added to read as follows: 

• information to establish your eligibility for our products and services 

The current second bulleted phrase should be changed to read as follows: 

• account balances or payment or transaction history 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001·2133 

www.acli.com 

4 
In addition, ACLI suggests that the term "credit history," used in this section, be replaced by the term 

"consumer report." Credit history is a narrow term and does not convey the range of personal 

information that institutions may collect and share. ACLI believes that use of the term consumer report 

will better reflect the practices of the life insurance industry than credit history. 

Closed Accounts 

On page one of the Model Form, the section entitled "What?" also contains a statement to the effect that 

the institution continues to share information about a customer after the customer closes the account. 

Because customers generally do not have "accounts" with life insurers, ACLI recommends that the 

phrase be changed to read as follows: 

When you are no longer a customer close your accouHt, we continue to share 

Additionally, ACLI believes that the statement relating to former customers is in the incorrect place on 

the Model Form. We suggest that it is more appropriate that the statement be included in the section 

entitled "How?" That section relates to information-sharing practices rather than the type of information 

collected and shared. Finally, ACLI urges that life insurers and other financial institutions not be 

required to provide the statement regarding sharing of information relating to former customers if the 

company does not share information after a customer relationship is terminated. 

"How" 

ACLI suggests that "such as" be used in the section entitled "How?" as follows: 

All financial companies need to share customers' personal information to run their 

everyday business- such as to process transactions ... 

Use of the phrase "such as" will indicate to consumers that not all companies use personal information 

for all the purposes presented. 

In addition, in the section entitled "How" and throughout the balance of the Model Form, ACLI believes 

that the term "credit bureaus" may be too limiting. Instead, we suggest use of the term "consumer 

reporting agencies" which would include entities that maintain personal information that is not related to 

credit, such as medical information that life insurers share with the Medical Information Bureau. 

"REASONS WE CAN SHARE YOUR PERSONAL INFORMATION" 

ACLI believes it is very important to ensure that the information contained in the disclosure table, on 

page one of the Model Form, accurately reflects a life insurer's sharing practices. However, life insurers 

and other financial institutions are not permitted to change the language appearing in this disclosure 

table. ACLI is concerned that the current list of reasons for sharing personal information and the 

permitted "yes" or "no" responses, in the columns relating to whether the company shares and whether 

the consumer can limit the sharing, will not permit life insurers to inform consumers about important 

aspects of their particular privacy policies or to reflect unique state requirements with respect to the 

disclosure of consumer information. 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001·2133 

www.acli.com 

5 
F:or example, the disclosure table does not take permit life insurers to inform consumers of special 

disclosure practices they may have in connection with medical information or to take into account 

unique state opt-in or opt-out requirements with respect to certain sharing of personal information. Also, 

the column entitled "Does [name] share?" permits only a "yes" or "no" answer. However, a life insurer 

may wish to inform consumers that it shares nonpublic personal information with certain affiliates or 

types of institutions rather than with all affiliates or all types of institutions. 

Accordingly, ACLI urges that life insurers be permitted to modify the disclosure table so that it 

accurately reflects life insurers' practices and unique state privacy laws without losing the safe harbor. 

Providing added flexibility will result in additional clarity for consumers and will not weaken the goal of 

making privacy disclosures clear and understandable. 

In addition, ACLI believes that certain specific minor changes to the language of the disclosure table 

will enhance consumer understanding of the information presented and more accurately reflect the 

info·rmation sharing practices of the life insurance industry. Accordingly, we suggest that the first block 

be adjusted read as follows: 

For our everyday business purposes- such as to process your transactions, maintain 

your account, and report to consumer reporting agencies. 

Again, use of the phrase "such as" is suggested to clarify that not all companies use personal information 

for all the purposes presented. 

In addition, for the reasons discussed above, ACLI believes that the term "consumer reporting agencies" 

should be substituted for the term "credit bureaus" in the first block. 

In the fourth block of the disclosure table, relating to disclosures to affiliates for everyday business 

purposes, ACLI believes that the use of the term "creditworthiness" may not accurately reflect the type 

of information that may be shared by life insurers with affiliates. ACLI recognizes the term 

"creditworthiness" is a short-hand way of describing information other than information relating to the 

customer's transactions and experiences with the institution. However, ACLI suggests that the term 

"creditworthiness" may be too expansive and may prove confusing to consumers, because it may 

connote information relating to the customer's transactions, such as payment history. Accordingly, we 

recommend that the language be changed to the following: 

For our affiliates' everyday business purposes- information other than information 

about your transactions and experiences with us creditworthiness 

In the fifth and sixth blocks of the disclosure table, relating to sharing of personal information 

with affiliates and nonaffiliates for marketing purposes, it is not clear that the blocks are 

intended to be applicable to sharing for purposes of marketing the affiliates' and nonaffiliates' 

products only. Accordingly, we suggest that the language of the fifth and sixth block be adjusted 

respectively to read as follows: 

For our affiliates to market their products to you 

For our nonaffiliates to market their products to you 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001·2133 

www.acli.com 

6 
"CoNTACT Us" 

The section on the bottom of page one of the Model Form entitled "Contact Us" provides for financial 

institutions to enter a telephone number or an Internet web address. In some instances, institutions wish 

consumers to contact them only by mail or by electronic means. In addition, many institutions wish also 

to provide a physical or electronic mailing address for consumers. Accordingly, ACLI urges that the 

Agencies not require life insurers or other financial institutions to provide a telephone number or 

Internet web address if these options are not offered and that institutions also be permitted to provide a 

physical or electronic mailing address as a point of contact. 

"SHARING PRACTICES" 

Notification 

The Agencies indicate that the language contained on page two of the Model Form under "Sharing 

practices" may not be changed. However, life insurance companies issue policies to customers. They 

do not typically open accounts. Modification of the language in the first section, entitled "How often 

does [ ] notify me about their practices?" to reflect insurance industry practices will not alter the 

meaning of the section and will take into account life insurers' practices. Accordingly, ACLI suggests 

that the language be modified to read as follows: 

We must notify you about our sharing practices when you become a customer open an 

account and each year while you are a customer 

Protection 

The response required for the question relating to how a financial institution protects personal 

information may not reflect actual practices of life insurers and other financial institutions. Accordingly, 

ACLI recommends that the provision be modified to read as follows: 

To protect your personal information from unauthorized access and use, we use security 

measures that comply with federal law. These measures include computer and physical 

safeguards.:. and secured files and buildings 

Collection 

ACLI is concerned that the responses to the question "How does [ ] collect my personal information?" 

do not reflect the reasons for which life insurers collect personal information. For example, one ofthe 

responses states that a company collects personal information when the customer opens an account or 

deposits money. It is likely that consumers will have little understanding of how that response applies to 

a customer's relationship with a life insurer because customers do not open accounts or deposit money 

with life insurers. 

Accordingly, ACLI urges that, without losing the safe harbor, life insurers be permitted to delete bullets 

that do not describe reasons for which life insurers collect personal information and to add bullets that 

accurately reflect the reasons for which life insurers do collect personal information. The following are 

examples of bullets that life insurers should be permitted to use: 

American Council of Ute Insurers 

101 Constitution Avenue, NW, Washington, DC 20001-2133 

www.acli.com 

7 
• request or use a product, service, or account 

• apply for insurance or benefits 

Limitation of sharing 

Use of the term "creditworthiness" in the first buiiet in response to the question "Why can't I limit ail 

sharing" is potentiaiiy confusing and may cause consumers to believe that federal law grants them the 

right to limit a life insurer's ability to share information relating to their transactions and experiences 

with an affiliate. Accordingly, in order to more accurately reflect the types of information that come 

within this category, we recommend modification of the buliet to read as foiiows: 

• affiliates' everyday business purposes - information other than information 

about your transactions and experiences with us. ereditworthiness 

Also, the next two builets in response to the question "Why can't I limit ail sharing?" are not entirely 

correct since federal law permits a life insurer or other financial institution to use an affiliate or a 

nonaffiliate to market its products and services. Accordingly, ACLI urges that these buiiets be clarified 

to read as foliows: 

• affiliates to market their products to you 

• nonaffiliates to market their products to you 

ACLI also points out that it may be confusing to consumers to have a F AQ entitled "Sharing practices" 

that addresses a number of other issues. In particular, the coiiection of information would appear to be 

inappropriately placed in the "sharing practices" section. Accordingly, ACLI recommends that the 

section be given another name, or at a minimum, that the F AQ regarding information coiiection be 

moved to a more appropriate section. 

"IF YOU WANT TO LIMIT OUR SHARING" 

30-Day Delay 

The sentence on page three of the Model Form, at the bottom of the box entitled "Contact Us," may be 

read to require institutions to delay sharing a consumer's personal information for 30 days from the date 

specified on the Model Form. Because the Model Form wiii be sent each year, this would require life 

insurers and other financial institutions to cease sharing nonpublic personal information for 30 days each 

year. ACLI believes that this is neither what the Agencies' regulations require, nor what the Agencies 

intended in the Model Form. 

Accordingly, ACLI requests modification to indicate that the 30-day waiting period applies only to the 

initial GLB opt-out opportunity provided to consumers. ACLI suggests the foiiowing language: 

Unless we hear from you, we can begin sharing your information 30 days from the 

date of this letter our first notice providing you the opportunity to limit our sharing. 

However, you can contact us at any time to limit our sharing. 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001·2133 

www.acli.com 

8 
"CHECK YOUR CHOICES" 

ACLI again is concerned that the inflexible structure of the opt-out choices will not provide life insurers 

the ability to provide opt-out choices that reflect their particular sharing policies and unique state laws. 

For example, a life insurer may wish to provide a partial opt-out, as explained below. Accordingly, 

ACLI urges that life insurers and other financial institutions be permitted, without losing the safe harbor, 

to adjust the opt out choices as necessary to accurately reflect an institution's particular practices. This 

will enhance, not weaken, the goal of making the opt out choices more clear and accurate. 

Sharing with affiliates for everyday purposes 

Further, ACLI is concerned that the opt out choices presented on page 3 of the Model Form may not 

accurately reflect the opt out opportunities provided by the FCRA. ACLI believes that the use of the 

term "creditworthiness" in the first choice is potentially confusing because customers may believe that 

the opt out choice also applies to information relating to their transactions with the company. ACLI 

suggests that the first opt out choice be changed to read as follows: 

Do not share with your affiliates for their everyday business purposes 

information other than information about my transactions and experiences 

with you. with yo1:1r affiliates for their everyday b1:1siness p1:1rposes 

Sharing with affiliates for marketing 

ACLI is concerned that the second opt out choice is not accurate because it does not indicate that a 

company may use information obtained from an affiliate for marketing purposes if the consumer is a 

customer of both companies and for other reasons specified in the Fair Credit Reporting Act. As 

proposed, consumers may believe that the opt out permits them to prevent all affiliates from using 

information for marketing purposes. Accordingly, ACLI believes that the option should be modified to 

read as follows: 

Do not allow your affiliates with whom I do not do business to use my 

personal information to market to me. 

Many financial institutions maintain the policy that if a customer chooses not to permit an 

affiliate to use personal information for marketing purposes, the opt out will continue until 

rescinded by the customer and need not be renewed. Accordingly, ACLI requests that the 

Agencies clarify that the sentence on page 3 of the Model Form regarding the need to renew 

this opt out after five years need not be provided if the institution's policy is to continue the 

opt out until the customer chooses to withdraw it. 

Partial Opt-out 

The Agencies' GLB Act regulations provide that financial institutions may permit a consumer to select 

certain nonpublic personal information or certain nonaffiliated third parties with respect to which the 

consumer wishes to opt-out. The Model Form does not appear to permit institutions to offer partial optouts to consumers. In view of the fact that the Agencies' existing regulations permit such an option, 

ACLI requests that the Model Form permit life insurers and other financial institutions to provide 

consumers with the opportunity to select certain nonpublic personal information or certain nonaffiliated 

third parties with respect to which the consumer wishes to opt-out. 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC Z0001·Z133 

www.acli.com 

9 
Account Number 

ACLI suggests that the reference to "Account Number" at the bottom of the opt out form be adjusted to 

reference an identifying number, that would include either an account or a policy number, since life 

insurers' customers are issued policies rather than accounts. 

OPERATIONAL CONSIDERATIONS 

FLESCH SCORE/FONT SIZE 

ACLI is concerned that the Model Form does not meet the Flesch Score of 50 required in the state of 

California with respect to insurers' privacy notices. There also is concern that the Model Form may not 

meet certain state requirements relating to font size. Accordingly, ACLI urges that the Agencies adjust 

the Model Form so that it meets the California Flesh Score requirement or that insurers be granted the 

flexibility to adjust the form as necessary to meet the requirement. ACLI also urges that insurers be 

permitted to adjust the font size to meet any applicable state requirements. 

PAPER SIZE 

The Agencies require financial institutions to print the Model Form on 8 'li" by II" paper. ACLI 

believes that specification of the paper size is not necessary to accomplish Congress's objectives with 

respect to the Model Form as set forth in the Regulatory Relief Act. To date, ACLI member companies 

have not received complaints regarding the size of the paper on which their privacy policies are printed. 

Accordingly, ACLI recommends that the Agencies permit financial institutions to print the Model Form 

on whatever size paper they believe is appropriate given an institution's particular circumstances. 

NUMBER OF PAGES 

The Agencies require that the Model Form must appear on two separate pages. If an opt-out is provided, 

the opt-out form must be on a third page. The Agencies indicate that separate pages are required 

because testing has indicated that consumers have a preference for notices that enable them to view the 

information on pages one and two side-by-side. ACLI believes that the evidence regarding consumer 

preference does not outweigh the significant increase in expenses life insurers and other financial 

institutions will incur as a result of increased costs for paper, handling and processing. The Agencies' 

research did not indicate any significant increase in consumer comprehension and usability. Indeed, the 

Agencies' notice states that their research concluded that page one of the Model Form alone was 

adequate for consumer comprehension and usability. 8 Accordingly, ACLI requests that the Agencies 

not adopt the requirement that the Model Form be printed on separate pages. 

DELIVERY 

The Agencies indicate that institutions will not be permitted to incorporate the Model Form into any 

other document. It is unclear whether the Model Form may be sent to customers in a mailing that 

contains other material. Nonetheless, ACLI believes that such limitations are inappropriate and 

unnecessary. The Agencies cite no evidence to support the position that including the Model Form with 

other material in a mailing will dilute its effectiveness. Moreover, as indicated above, ACLI believes it 

is very important that life insurers to be permitted to include supplemental materials with the Model 

8 72 Fed. Reg. at 14944. 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001·2133 

www.acli.com 

10 
Fprm if necessary to make the notice accurately reflect life insurance industry practices and to comply 

with state privacy laws that differ from the GLB Act requirements. Also, including the Model Form 

with another important document, such as a periodic statement, will underscore the importance of the 

Model Form to consumers. Requiring that the privacy notice be sent in a separate mailing will add 

considerable expense with no demonstrable and possible diminution of its benefit to consumers. 

Accordingly, ACLI urges that the Agencies permit financial institutions to include other information in 

the mailing that contains the Model Form without losing the safe harbor. 

Insurers often provide customers with privacy notices as part of a document or brochure that describes 

the terms and features relating to the customer's insurance policy or annuity. Customers review and 

retain these documents because they are important documents. For example, companies that are 

required to provide a prospectus to customers in connection with certain types of insurance products 

generally include the privacy notice in the prospectus. Because of their importance and 

comprehensiveness, consumers typically review and retain these booklets or documents. Permitting the 

Model Form to be part of a comprehensive relationship document will not adversely affect the goals set 

forth in the Regulatory Relief Act. Indeed, permitting the form to be part of an important relationship 

document will focus attention on the notice and help ensure that it will be read by customers. It also 

ensures that the Model Form will be delivered to customers and will not inadvertently be omitted from 

among other documents provided to consumers at the time they become customers. Accordingly, ACLI 

requests that the Agencies permit institutions to incorporate the Model Form into a document that 

includes other material relating to the customer's relationship with the institution. 

NOTICE OF CHANGES 

Life insurers and other financial institutions typically notify consumers of changes to their privacy 

policies in annual privacy notices. The Agencies have requested .comment on whether they should 

require financial institutions to highlight changes in their policies as part of the Model Form. ACLI 

believes that such a requirement will result in consumer confusion and is unnecessary. Requiring 

institutions to highlight changes in their privacy policies would be meaningful only if consumers are 

informed as to what the previous policies were. Moreover, requiring that this additional information be 

provided is inconsistent with the objective of providing privacy policies in a clear, straightforward 

manner that consumers can easily understand. Highlighting changes will make the Model Form 

unnecessarily complex and confusing to customers. 

LOGOS AND COLOR 

The Agencies ask whether financial institutions will use corporate logos and color in connection with 

the Model Form. Financial institutions use corporate logos to provide a consistent corporate identity 

that customers easily recognize and identify with. The use of color and logos increases the likelihood 

that customers will read the information the institution provides. Accordingly, ACLI supports the ability 

of life insurers and other financial institutions to use logos and color on the Model Form. 

TESTING 

The Agencies indicate they plan to test the next version of the Model Form with consumers. ACLI 

recommends that the Agencies also convene an advisory group composed ofrepresentatives of life 

insurers and other financial institutions with expertise in privacy matters to review the Model Form and 

advise on whether the next version provides useful information to consumers, is understandable, and 

conveys meaningful information in a clear manner. 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001·2133 

www.acli.com 

11 
NOTICES ON WEBSITES 

The Agencies indicate that if an institution posts a pdf version of the Model Form on its Internet 

websites it may come within the Agencies' safe harbor. The Agencies ask whether a web-based design 

should be developed. ACLI believes that a web-based Model Form would prove convenient to 

consumers because it would not require them to open a pdf document to view an institution's privacy 

policy. Consumers can review a web-based privacy policy by clicking on the appropriate web page. 

Accordingly, ACLI requests that life insurers and other financial institutions be permitted to develop and 

use a web-based design on their websites. 

* * * 

To enable life insurers to use the Model Form, the unique aspects of their information collection and 

sharing practices as well as various state privacy and disclosure requirements must be taken into 

account. This is particularly the case for life insurers that are part of diversified holding companies. 

Accordingly, ACLI urges: (i) the Agencies to permit life insurers to make limited modifications to the 

Model Form or to include supplemental materials with the Model Form, to reflect the unique aspects of 

the life insurance industry and state privacy laws, without losing the safe harbor, and (ii) that the 

Agencies make specific language changes to the Model Form, as discussed above, so that diversified 

holding companies that include life insurers may use a single notice, in line with the clear intent of the 

GLB Act. 

ACLI appreciates the opportunity to provide its comments on the proposed Model Form and appreciates 

your consideration of its views. If you have any questions, please do not hesitate to contact me 

Attachment 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001·2133 

www.acli.com 

Sincerely, 

Roberta Meyer 

12 
ATIACHMENT 

FACTS WHAT DOES [name of financial institution] DO 

WITH YOUR PERSONAL INFORMATION? 

Why? Financial companies choose how they share your personal information. Federal law 

gives consumers the right to limit some but not all sharing. Federal law also requires 

us to tell you how we collect, share, and protect your personal information. Please read 

this notice careful! to understand what we do. 

The types of personal information we collect and share depend on the product or 

service you have with us. This information can include: 

• information to establish your eligibility for our products and services; 

• Social Security number and income 

• account balances or payment or transaction history 

• consumer report credit hisffifyor credit scores 

All financial companies need to share customers' personal information to run their 

everyday business, such as to process transactions, maintain customer accounts, and 

report to consumer reporting aqenciescre4ft--t}lJ-FeatiS. In the section below, we list the 

reasons financial companies can share their customers' personal information; the 

reasons [name of financial institution] chooses to share; and whether you can limit this 

sha 

Reasons we can share your personal information Does [name of financial Can you limit sharing? 

institution] share? 

For our every day business purposes - -

such as to process your transactions, maintain your 

accoun , and report to credit bureaus consumer 

reoorti a aoencies 

For our marketing purposes - -

to offer our products and services to you 

For joint marketing with other financial companies 

For our affiliates' everyday business purposes -

information about your transactions and experiences 

For our affiliates' everyday business purposes -

Inform< tion other than information about your 

€- 5-5-transactions and experiences with us 

For our affiliates to market their products to you 

For nor affiliates to market their products to you 

[applicable means of contact] Call or go to [web address] 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001-2133 

www.acli.com 
FACTS 

WHAT DOES [name of financial institution] DO 

WITH YOUR PERSONAL INFORMATION? 

Sharing practices 

How o~en does [name of financial 

instituti~m] notify me about their 

practices 

How does [name of financial 

institution] protect my personal 

inform~tion? 

How dJes [name of financial 

institution] collect my personal 

;nformf" 

I 

Why can't I limit all sharing? 

Definitions 

Everyday business purposes 

Affiliates 

Nonaffiliates 

Joint marketing 

American Council of Life Insurers 

We must notify you about our sharing practices when you become a 

customer opeR-ar+-acGotmtand each year while you are a customer. 

To protect your personal information from unauthorized access and use, 

we use security measures that comply with federal law. These measures 

include computer and physical safeguards-arnl--seGufeG..files-af!€1-GuildiA§S. 

[Option for life insurers] 

We collect your personal information, for example, when you 

• apply for insurance or benefits 

• request or use a product. service or open an account or deposi-t 

mooey 

• buy or sell securities.,..-pay-yetl-H:liiJ.!H}f-apply-fu~eaR 

• use your credit or debit card 

We also collect your personal information from others such as consumer 

reoortina aaencies, credit bureaus, affiliates, or other companies. 

Federal law gives you the right to limit sharing only for 

• affiliates' everyday business purposes- information other than 

information about your transactions and experiences with us 

creditworthiness 

• affiliates to market their products to you 

• nonaffiliates to market their products to you 

State laws and individual companies may give you additional rights to limit 

sharing. 

The actions necessary by financial companies to run their business and 

manage customer accounts, such as: 

• processing transactions. mailing, and auditing services 

• providing information to consumer reporting agencies GFCdii-Gur.eaBs 

• responding to court orders and legal investigations 

Companies related by common ownership or control. They can be 

financial and nonfinancial companies. 

• [affiliate information] 

Companies not related by common ownership or control. They can be 

financial or nonfinancial companies. 

• [nonaffiliated information] 

A formal agreement between nonaffiliated financial companies that 

together market financial products or services to you 

• Uoint marketing) 

2 

101 Constitution Avenue, NW, Washington, DC 20001·2133 

www.acli.com 
FACTS WHAT DOES [name of financial institution] DO 

WITH YOUR PERSONAL INFORMATION? 

If you want to limit our sharing · · -

Contact us By telephone (toll-free telephone]- our menu will prompt you through your choices 

On the web: [web address) 

By mail: mark your choices below, fill in and send from to 

[mailing address) 

Unless we hear from you, we can begin sharing your information 30 days from the date of 

our first notice providing you the opportunity to limit our sharingthis letter. However, you can 

contact us at an time to limit our sharin . 

Check your choices _ 

Your choices will apply 

to eveTne on your 

Check any/all you want to limit: (see page 1) 

U Do not share with your affiliates for their everyday business purposes information, 

other than information about my transactions and experiences with 

'LQ!J.GF-efiitweftfliness with yotlf-alfifiate-s-fGf--tt::le~y..-9l:l-&ines5-fJ-urpose. 

u Do not allow your affiliates with whom I do not do business to use my personal 

information to market to me. 

{I will receive a renewal notice for this use for marketing in 5 years.) 

0 Do not share my personal information with nonaffiliates to market their 

products and services to me. 

Mail to: 

----------------------------~ 

[mailing address) 

3 

American Council of Life Insurers 

101 Constitution Avenue, NW, Washington, DC 20001·2133 

www.acli.com