California Code of Regulations › Title 10 - Investment › Chapter 5 - Insurance Commissioner › Subchapter 5.9 - Privacy of Nonpublic Personal Information › Article 1 - General Provisions › Section 2689.4 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
As used in these regulations, unless the context requires
					 otherwise:
(a) "Clear and conspicuous"
				  means that a notice is "reasonably understandable" and "designed to call
				  attention to the nature and significance of the information" in the notice. All
				  notices must be clear and conspicuous and accurately reflect the licensee's
				  privacy policies and practices.
A notice is "reasonably understandable" if it:
(1) Presents information in clear, concise
				  sentences, paragraphs, and sections;
(2) Uses short explanatory sentences (an
				  average of 15-20 words) or bullet lists whenever possible;
(3) Uses definite, concrete, everyday words
				  and active voice whenever possible;
(4) Avoids multiple negatives;
(5) Avoids legal and highly technical
				  business terminology whenever possible;
(6) Avoids explanations that are imprecise
				  and readily subject to different interpretations; and
(7) Achieves a minimum Flesch Reading Ease
				  Score of 50. (The Flesch Reading Ease Score rates text on a 100-point scale --
				  the higher the score, the easier it is to understand the document. The formula
				  for the Flesch Reading Ease score is:
206.835 - (1.015 x ASL) - (84.6 x ASW)
where:
ASL = average sentence length (the number of words divided
					 by the number of sentences)
ASW = average number of syllables per word (the number of
					 syllables divided by the number of words).)
A notice is "designed to call attention to the nature and
					 significance of the information" in it if it:
(8) Uses a plain-language heading to call
				  attention to the notice;
(9) Uses
				  an easy-to-read typeface and type size (at least 10 point);
(10) Provides wide margins and ample line
				  spacing;
(11) Uses boldface or
				  italics for key words;
(12) In a
				  form that combines the licensee's notice with other information, uses
				  distinctive type size, style, and graphic devices, such as shading or sidebars;
				  and
(13) If on the back or inside
				  of a multi-page form, is accompanied by a prominent notice on the front of the
				  form directing the reader's attention to the privacy notice and where it may be
				  found.
A notice on a web site is "designed to call attention to
					 the nature and significance of the information" in it if it is rendered as a
					 page using Hypertext Markup Language (html) in addition to any other webpage
					 formats used, is at least the equivalent point size and type as the standard
					 text on the licensee's web site, and, uses text or visual cues to encourage
					 scrolling down the page if necessary to view the entire notice and ensures that
					 other elements on the web site (such as text, graphics, hyperlinks or sound) do
					 not distract attention from the notice, and the notice is
					 either:
(14) Placed on a
				  screen that consumers frequently access, such as a page on which transactions
				  are conducted; or
(15) Accessed
				  from a screen that consumers frequently access through a link that connects
				  directly to the notice and is labeled appropriately to convey the importance,
				  nature and relevance of the notice.