836-080-0526 Information to be Included in Annual Notice (1) This rule implements the requirement of the annual notice under ORS 746.620, describes the contents of the annual notice and provides examples of categories of information required in the annual notice. (2) The following are examples of categories of personal financial information collected by a licensee. A licensee satisfies the requirement of categorizing the personal financial information it collects if the licensee categorizes it according to the source of the information, as applicable: (a) Information from the consumer; (b) Information about the consumer’s transactions with the licensee or its affiliates; (c) Information about the consumer’s transactions with nonaffiliated third parties; and (d) Information from an insurance support organization. (3) The following are examples of categories of personal financial information disclosed by a licensee: (a) A licensee satisfies the requirement of categorizing personal financial information it discloses if the licensee categorizes the information according to source, as described in section (2) of this rule, as applicable, and provides a few examples to illustrate the types of information in each category. These may include: (A) Information from the consumer, including application information such as assets and income and identifying information such as name, address and social security number; (B) Transaction information, such as information about balances, payment history and parties to the transaction; and (C) Information from consumer reporting agencies, such as a consumer’s creditworthiness and credit history. (b) A licensee does not adequately categorize the information that it discloses if the licensee uses only general terms, such as transaction information about the consumer. (c) If a licensee may disclose all of the personal financial information about consumers that it collects, the licensee may simply state that fact without describing the categories or examples of personal financial information that the licensee discloses. (4) The following are examples for describing categories of affiliated and nonaffiliated third parties to which a licensee discloses information: (a) A licensee satisfies the requirement of categorizing the affiliates and nonaffiliated third parties to which the licensee discloses personal financial information about consumers if the licensee identifies the types of business in which they engage. (b) Types of businesses may be described by general terms only if the licensee uses a few illustrative examples of significant lines of business. For example, a licensee may use the term financial products or services if it includes appropriate examples of significant lines of businesses, such as life insurer, automobile insurer, consumer banking or securities brokerage. (c) A licensee may also categorize the affiliates and nonaffiliated third parties to which it discloses personal financial information about consumers using more detailed categories. (5) An annual notice shall include an explanation of the consumer’s right under ORS 746.665(1)(k) to opt out of the disclosure of personal financial information to nonaffiliated third parties, including the method by which the consumer may exercise the right at that time. An annual notice that contains such an explanation satisfies the requirement of 746.620(3)(f). If a licensee discloses personal financial information under the exception in 746.665(1)(k) to a nonaffiliated third party to market products or services that it offers alone or jointly with another financial institution, the licensee satisfies the applicable disclosure requirement of this rule if the licensee: (a) Lists the categories of personal financial information it discloses, using the same categories and examples the licensee used to meet the requirements of section (1) of this rule. (b) States whether the third party is: (A) A service provider that performs marketing services on the licensee’s behalf or on behalf of the licensee and another financial institution; or (B) A financial institution with whom the licensee has a joint marketing agreement. (6) If a licensee does not disclose personal financial information about customers or former customers to affiliates or nonaffiliated third parties except as authorized under ORS 746.665(1)(a) to (j) and (m) to (q), and under 746.665(1)(L) in connection with an audit, the licensee may state that fact, in addition to the information it is required to provide under 746.620(3)(a), (h) and (i), and (4). (7) A licensee describes its policies and practices relating to protection of the confidentiality and security of personal financial information if it does both of the following: (a) Describes in general terms who is authorized to have access to the information; and (b) States whether the licensee has security practices and procedures in place to ensure the confidentiality of the information in accordance with the licensee’s policy. The licensee is not required to describe technical information about the safeguards it uses. (8) A licensee’s notice may include any of the following: (a) Categories of personal financial information that the licensee reserves the right to disclose in the future but does not currently disclose; and (b) Categories of affiliates or nonaffiliated third parties to whom the licensee reserves the right in the future to disclose, but to whom the licensee does not currently disclose, personal financial information. Statutory/Other Authority: ORS 731.244, 746.600 & 746.620 Statutes/Other Implemented: ORS 746.600, 746.620, 746.630 & 746.665 History: ID 8-2002, f. & cert. ef. 2-15-02