HB 5738 Summary

• Amends Michigan Insurance Code to require licensees to obtain prior, specific written informed consent from consumers before disclosing nonpublic personal financial information to any person, except when disclosure is necessary or required by law.

• Requires licensees to use reasonable care to secure nonpublic personal financial information from unauthorized access and establish publicly available privacy policies addressing collection, security, use, and release of consumer information.

• Modifies privacy notice requirements by eliminating "initial" and "revised" notices and requiring only annual notices to customers that include categories of information collected, disclosed, and parties receiving disclosures, along with confidentiality and security policies.

• Establishes notice delivery methods including hand delivery, mail, electronic posting with acknowledgment, or website posting with consumer agreement, while prohibiting oral-only notices.

• Repeals 15 existing sections of the Insurance Code and conditions the bill's effectiveness on enactment of HB 5739.