Sec. 420.24. Effective date; transition rule

(a) Effective date.

This Part is effective November 13, 2000. In order to provide sufficient time for insurers and other licensees to establish policies and systems to comply with the requirements of this Part, time for compliance with this Part is extended until July 1, 2001, except that time for compliance with sections 420.17 through 420.21 of this Part is extended until December 31, 2001.

(b)

(1) Notice requirement for consumers who are the licensee's customers on the compliance date. By July 1, 2001, the licensee shall provide an initial notice, as required by section 420.4 of this Part, to consumers who are the licensee's customers on July 1, 2001.

(2) Example. A licensee meets the requirement in paragraph (1) of this subdivision, if, by July 1, 2001, a licensee has established a system for providing an initial notice to all new customers and has mailed the initial notice to all the licensee's existing customers.

(c) Two-year grandfathering of service agreements.

Until July 1, 2002, a contract that a licensee has entered into with a nonaffiliated third party to perform services for the licensee or functions on the licensee's behalf satisfies the provisions of section 420.13(a)(2) of this Part even if the contract does not include a requirement that the third party maintain the confidentiality of nonpublic personal information, as long as the licensee entered into the agreement on or before July 1, 2000.