When must the insurer or producer provide a notice of information practices to applicants?

The requirement for an insurer or producer to provide a notice of information practices to applicants at the time of submitting a written application and during the policy delivery is rooted in the principles of transparency and informed consent in the insurance industry. This practice ensures that applicants are fully aware of how their personal information will be used and protected, which is critical for building trust and compliance with privacy regulations.

Providing this notice at these two key points—when the application is made and when the policy is delivered—ensures that applicants have the necessary information before they commit to purchasing the policy. It allows them to understand their rights regarding personal information and gives them a chance to ask questions or seek clarification about how their data will be handled.

Other timing options, such as only at the time of policy renewal or monthly throughout the policy term, do not effectively meet the need for upfront disclosure, leaving applicants uninformed at the critical juncture of deciding whether to purchase the policy. Additionally, waiting until immediately after the policy is issued would be too late, as applicants should be informed of these practices before finalizing their purchase decision. Providing this notice both at the application stage and upon delivery ensures that applicants are fully educated about their privacy rights and the insurer's practices from the outset.