When must an insurer provide notice of information practices to the insured?

The requirement for an insurer to provide notice of information practices at the time of policy delivery is rooted in the principles of transparency and informed consent in the insurance industry. This notice is essential for ensuring that policyholders understand how their personal information will be collected, used, and shared by the insurer.

Delivering this notice at policy inception allows the insured to make informed decisions about their coverage and to understand their rights regarding their personal information from the very beginning of the insurance relationship. It sets the stage for a clear understanding of privacy practices, which is crucial in fostering trust between the insured and the insurer.

While it's important to maintain ongoing communication, such as annual notices or updates when significant changes occur, the initial delivery of the policy is the most critical time to inform the insured about their rights and the insurer's practices regarding information. This is why it is mandated to take place at that moment, ensuring consumers are well-informed right from the start of their coverage.