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Pennsylvania12 Pa. Code § 143.12. Consumer complaints. Individuals alleging wrongful acts by persons involved in the manufacture or sale of manufactured homes within this Commonwealth shall contact the Department of Community and Economic Development, Housing Standards Division, 400 North Street, 4th Floor, Harrisburg, Pennsylvania 17120. An investigation will be conducted by the Division upon the receipt of a written and signed complaint. Complaints must contain the writer’s name and address, and contain sufficient detail to enable the Division to fully understand the nature and extent of the complaint. Copies of all documents shall be appended to the complaint.12 Pa. Code § 143.12. Consumer complaints. Individuals alleging wrongful acts by persons involved in the manufacture or sale of manufactured homes within this Commonwealth shall contact the Department of Community and Economic Development, Housing Standards Division, 400 North Street, 4th Floor, Harrisburg, Pennsylvania 17120. An investigation will be conducted by the Division upon the receipt of a written and signed complaint. Complaints must contain the writer’s name and address, and contain sufficient detail to enable the Division to fully understand the nature and extent of the complaint. Copies of all documents shall be appended to the complaint.

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12 Pa. Code § 143.2. Purpose. This chapter implements the act to facilitate the sale and use of manufactured housing in this Commonwealth in a manner consistent with safeguarding the health, safety and welfare of citizens of this Commonwealth. This chapter is intended primarily for the following:

(1) To promulgate standards and procedures that will facilitate the manufacture of manufactured homes in accordance with the Federal act.

(2) To establish uniform procedures to assure that manufactured homes manufactured or shipped, or both, into this Commonwealth are regulated in accordance with the act and Federal act.

(3) To improve the quality, safety and durability of manufactured homes in this Commonwealth.

(4) To establish procedures to be utilized in the handling of consumer complaints, remedial actions, hearings and other provisions of the act.
12 Pa. Code § 143.2. Purpose. This chapter implements the act to facilitate the sale and use of manufactured housing in this Commonwealth in a manner consistent with safeguarding the health, safety and welfare of citizens of this Commonwealth. This chapter is intended primarily for the following:

(1) To promulgate standards and procedures that will facilitate the manufacture of manufactured homes in accordance with the Federal act.

(2) To establish uniform procedures to assure that manufactured homes manufactured or shipped, or both, into this Commonwealth are regulated in accordance with the act and Federal act.

(3) To improve the quality, safety and durability of manufactured homes in this Commonwealth.

(4) To establish procedures to be utilized in the handling of consumer complaints, remedial actions, hearings and other provisions of the act.

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12 Pa. Code § 31.201. Definitions. The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:

Act 91 Notice—The notice of intention to foreclose required to be sent to a mortgagor prior to the filing of a foreclosure action under the act in the form prescribed in this subchapter.

Applicant—A person who has received the notice described in Appendix A and who has submitted an application to the Agency under this subchapter.

Consumer credit counseling agency—A nonprofit corporation or governmental entity located in this Commonwealth which has been designated by the Agency to provide Homeowner’s Emergency Mortgage Assistance Program counseling. A qualified consumer credit counseling agency shall either be certified as a housing counseling agency by the Department of Housing and Urban Development or otherwise be determined acceptable by the Agency. A list of counseling agencies approved by the Agency is set forth in Appendix C. This list was last updated and includes all changes through August 1, 2008. Future updates of this list will only appear on the Agency’s web site, www.phfa.org, and will be updated on a regular basis as changes occur.

Gross household income—The total income of the applicant, all other owners-occupants of the residence, any spouse and children residing in the same household as the applicant and other residents of the household declared by the mortgagor as dependents for Federal tax purposes. The term does not include the income of minor children. The income of adult children or other unrelated individuals residing in the household shall be considered part of gross household income only to the extent that their income is available to the household.

Homeowner—The owner occupant of a one- or two-family residential structure or the owner-occupant of a cooperative or condominium unit who is also the borrower, debtor or obligor on a mortgage encumbering the residence. The term is interchangeable with the term ‘‘mortgagor.’’

Installment sales contract or agreement—An agreement or contract under which the seller of residential real property conveys ownership of or an equitable interest in real estate which constitutes the principal residence of the buyer wherein the seller finances the purchase by the buyer through contract, agreement, note or other security interest, if that contract or agreement does not constitute a default under the terms of a pre-existing mortgage between the seller and the seller’s mortgagee.

Mortgage—A lien, other than a judgment, on a fee simple or leasehold interest in real property which constitutes the principal residence of the mortgagor, obligor or debtor, located in this Commonwealth together with credit instruments secured thereby. The term includes an installment sales agreement or installment sales contract. The term also includes an obligation evidenced by a security lien on real property upon which an owner-occupied mobile home is located.

Mortgagee—A lender whose debt is secured by a mortgage.

Mortgagor—The owner occupant of a one- or two-family residential structure or the occupant of a cooperative or condominium unit who is also the borrower, debtor or obligor on a mortgage encumbering the residence. This term is interchangeable with the term ‘‘homeowner.’’

Net effective income—Gross household income less city, State and Federal income and Social Security taxes.

Noncorporate seller—A person holding a mortgage who is not a bank, a savings and loan association, a mortgage bank, a consumer discount company or other entity in the mortgage lending business.

Reasonable attorneys’ fees and costs—Fees for legal services and reasonable and necessary costs related thereto, which are actually incurred by a mortgagee, in commencing or pursuing an action of mortgage foreclosure and which meet the following requirements or limitations:

(i) The agency will reimburse lenders for attorneys fees, only after receipt of a detailed, itemized statement showing services rendered, dates and time spent. The agency will reimburse lenders based upon an hourly rate of up to $100 per hour or other reasonable hourly rate as may be established by the agency and published by the agency in the Pennsylvania Bulletin. The agency will average in attorney, and paralegal- or legal assistant- time actually billed to the lender in calculating the hourly rate.

(ii) When the foreclosure action was instituted by the lender, not contested by the homeowner, and proceeded to judgment, the agency may reimburse the lender for attorney fees in an amount equal to the amount established by the Federal National Mortgage Association (Fannie Mae) for its lenders in this Commonwealth, for a standard, completed, uncontested foreclosure, without requiring an itemization of services rendered.

(iii) The agency will reimburse lenders for attorney fees or costs incurred in connection with a bankruptcy filed by the homeowner, only if the fees or costs were incurred after the sending of the notice required by the act.

(iv) The agency will reimburse lenders for attorney fees or costs only if the lender has provided the notice required by the act and the services were not rendered or costs incurred after an applicant has been approved for a mortgage assistance loan by the agency and the lender has been notified of the approval.

(v) The agency will reimburse lenders for the cost of an appraisal of the property only if the homeowner was untimely in making application to the agency and the appraisal was procured after judgment was rendered in the foreclosure action.

(vi) Prior to the commencement of an action in mortgage foreclosure, the agency will reimburse lenders attorneys’ fees and costs in an amount which may not exceed the sum of $50.

(vii) Attorneys’ fees and costs will not be allowed, nor be the subject of reimbursement by the Agency, if the services are rendered or the costs incurred prior to or during the 30-day notice period required by section 403 of the act of January 30, 1974 (P. L. 13, No. 6) (41 P. S. § 403), known as the Usury Law.

(viii) Attorneys’ fees and costs will not be allowed nor be the subject of reimbursement by the agency, if the services are rendered or the costs incurred during the notice and application periods when the homeowner is protected by a stay against legal action as imposed by sections 402-C and 403-C of the act (35 P. S. § § 1680.402c and 1680.403c). Section 402-C of the act prohibits a mortgagee from entering judgment by confession pursuant to a note accompanying a mortgage and from proceeding to enforce the obligation without giving notice and following the procedures provided in the act.

Total housing expense—The sum of the mortgagor’s monthly mortgage payments, including escrows, utility costs, hazard insurance expenses, real property taxes and, in the case of cooperatives and condominiums, the maintenance expense shall consist of the monthly amount the unit is assessed for the maintenance of common elements.
12 Pa. Code § 31.201. Definitions. The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:

Act 91 Notice—The notice of intention to foreclose required to be sent to a mortgagor prior to the filing of a foreclosure action under the act in the form prescribed in this subchapter.

Applicant—A person who has received the notice described in Appendix A and who has submitted an application to the Agency under this subchapter.

Consumer credit counseling agency—A nonprofit corporation or governmental entity located in this Commonwealth which has been designated by the Agency to provide Homeowner’s Emergency Mortgage Assistance Program counseling. A qualified consumer credit counseling agency shall either be certified as a housing counseling agency by the Department of Housing and Urban Development or otherwise be determined acceptable by the Agency. A list of counseling agencies approved by the Agency is set forth in Appendix C. This list was last updated and includes all changes through August 1, 2008. Future updates of this list will only appear on the Agency’s web site, www.phfa.org, and will be updated on a regular basis as changes occur.

Gross household income—The total income of the applicant, all other owners-occupants of the residence, any spouse and children residing in the same household as the applicant and other residents of the household declared by the mortgagor as dependents for Federal tax purposes. The term does not include the income of minor children. The income of adult children or other unrelated individuals residing in the household shall be considered part of gross household income only to the extent that their income is available to the household.

Homeowner—The owner occupant of a one- or two-family residential structure or the owner-occupant of a cooperative or condominium unit who is also the borrower, debtor or obligor on a mortgage encumbering the residence. The term is interchangeable with the term ‘‘mortgagor.’’

Installment sales contract or agreement—An agreement or contract under which the seller of residential real property conveys ownership of or an equitable interest in real estate which constitutes the principal residence of the buyer wherein the seller finances the purchase by the buyer through contract, agreement, note or other security interest, if that contract or agreement does not constitute a default under the terms of a pre-existing mortgage between the seller and the seller’s mortgagee.

Mortgage—A lien, other than a judgment, on a fee simple or leasehold interest in real property which constitutes the principal residence of the mortgagor, obligor or debtor, located in this Commonwealth together with credit instruments secured thereby. The term includes an installment sales agreement or installment sales contract. The term also includes an obligation evidenced by a security lien on real property upon which an owner-occupied mobile home is located.

Mortgagee—A lender whose debt is secured by a mortgage.

Mortgagor—The owner occupant of a one- or two-family residential structure or the occupant of a cooperative or condominium unit who is also the borrower, debtor or obligor on a mortgage encumbering the residence. This term is interchangeable with the term ‘‘homeowner.’’

Net effective income—Gross household income less city, State and Federal income and Social Security taxes.

Noncorporate seller—A person holding a mortgage who is not a bank, a savings and loan association, a mortgage bank, a consumer discount company or other entity in the mortgage lending business.

Reasonable attorneys’ fees and costs—Fees for legal services and reasonable and necessary costs related thereto, which are actually incurred by a mortgagee, in commencing or pursuing an action of mortgage foreclosure and which meet the following requirements or limitations:

(i) The agency will reimburse lenders for attorneys fees, only after receipt of a detailed, itemized statement showing services rendered, dates and time spent. The agency will reimburse lenders based upon an hourly rate of up to $100 per hour or other reasonable hourly rate as may be established by the agency and published by the agency in the Pennsylvania Bulletin. The agency will average in attorney, and paralegal- or legal assistant- time actually billed to the lender in calculating the hourly rate.

(ii) When the foreclosure action was instituted by the lender, not contested by the homeowner, and proceeded to judgment, the agency may reimburse the lender for attorney fees in an amount equal to the amount established by the Federal National Mortgage Association (Fannie Mae) for its lenders in this Commonwealth, for a standard, completed, uncontested foreclosure, without requiring an itemization of services rendered.

(iii) The agency will reimburse lenders for attorney fees or costs incurred in connection with a bankruptcy filed by the homeowner, only if the fees or costs were incurred after the sending of the notice required by the act.

(iv) The agency will reimburse lenders for attorney fees or costs only if the lender has provided the notice required by the act and the services were not rendered or costs incurred after an applicant has been approved for a mortgage assistance loan by the agency and the lender has been notified of the approval.

(v) The agency will reimburse lenders for the cost of an appraisal of the property only if the homeowner was untimely in making application to the agency and the appraisal was procured after judgment was rendered in the foreclosure action.

(vi) Prior to the commencement of an action in mortgage foreclosure, the agency will reimburse lenders attorneys’ fees and costs in an amount which may not exceed the sum of $50.

(vii) Attorneys’ fees and costs will not be allowed, nor be the subject of reimbursement by the Agency, if the services are rendered or the costs incurred prior to or during the 30-day notice period required by section 403 of the act of January 30, 1974 (P. L. 13, No. 6) (41 P. S. § 403), known as the Usury Law.

(viii) Attorneys’ fees and costs will not be allowed nor be the subject of reimbursement by the agency, if the services are rendered or the costs incurred during the notice and application periods when the homeowner is protected by a stay against legal action as imposed by sections 402-C and 403-C of the act (35 P. S. § § 1680.402c and 1680.403c). Section 402-C of the act prohibits a mortgagee from entering judgment by confession pursuant to a note accompanying a mortgage and from proceeding to enforce the obligation without giving notice and following the procedures provided in the act.

Total housing expense—The sum of the mortgagor’s monthly mortgage payments, including escrows, utility costs, hazard insurance expenses, real property taxes and, in the case of cooperatives and condominiums, the maintenance expense shall consist of the monthly amount the unit is assessed for the maintenance of common elements.

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31 Pa. Code § 115.9. Additional consumer protections. A public adjuster shall:

(1) Notify the insurer, within 5 business days of the execution date of the contract, of the public adjuster’s representation to facilitate the processing of claims.

(2) Communicate in writing, to the insured, within 5 business days, all settlement offers from an insurer so that the insured is made aware of all the options.

(3) Reply to written communications from an insurer, with respect to a claim, in writing within 5 business days, only if the communication from the insurer requires a response.
31 Pa. Code § 115.9. Additional consumer protections. A public adjuster shall:

(1) Notify the insurer, within 5 business days of the execution date of the contract, of the public adjuster’s representation to facilitate the processing of claims.

(2) Communicate in writing, to the insured, within 5 business days, all settlement offers from an insurer so that the insured is made aware of all the options.

(3) Reply to written communications from an insurer, with respect to a claim, in writing within 5 business days, only if the communication from the insurer requires a response.

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31 Pa. Code § 146a.2. Definitions.The following words and terms, when used in this chapter, have the following meanings, unless the context requires otherwise:

Act—The Insurance Department Act of 1921 (40 P. S. § § 1—321)

Affiliate—A company that controls, is controlled by or is under common control with another company.

Clear and conspicuous—That a notice is reasonably understandable and designed to call attention to the nature and significance of the information in the notice. Examples include:

(i) Reasonably understandable. A licensee makes its notice reasonably understandable if it does all of the following:

(A) Presents the information in the notice in clear, concise sentences, paragraphs and sections.

(B) Uses short explanatory sentences or bullet lists whenever possible.

(C) Uses definite, concrete, everyday words and active voice whenever possible.

(D) Avoids multiple negatives.

(E) Avoids legal and highly technical business terminology whenever possible.

(F) Avoids explanations that are imprecise and readily subject to different interpretations.

(ii) Designed to call attention. A licensee designs its notice to call attention to the nature and significance of the information in it if the licensee does all of the following:

(A) Uses a plain-language heading to call attention to the notice.

(B) Uses a typeface and type size that are easy to read.

(C) Provides wide margins and ample line spacing.

(D) Uses boldface or italics for key words.

(E) 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.

(iii) Notices on websites. If a licensee provides a notice on a webpage, the licensee designs its notice to call attention to the nature and significance of the information in it if the licensee uses text or visual cues to encourage scrolling down the page if necessary to view the entire notice and ensure that other elements on the website (such as text, graphics, hyperlinks or sound) do not distract attention from the notice, and the licensee either:

(A) Places the notice on a screen that consumers frequently access, such as a page on which transactions are conducted.

(B) Places a link on a screen that consumers frequently access, such as a page on which transactions are conducted, that connects directly to the notice and is labeled appropriately to convey the importance, nature and relevance of the notice.

Collect—To obtain information that the licensee organizes or can retrieve by the name of an individual or by identifying number, symbol or other identifying particular assigned to the individual, irrespective of the source of the underlying information.

Commissioner—The Insurance Commissioner of the Commonwealth.

Company—A corporation, limited liability company, business trust, general or limited partnership, association, sole proprietorship or similar organization.

Consumer—An individual who seeks to obtain, obtains or has obtained an insurance product or service from a licensee that is to be used primarily for personal, family or household purposes, and about whom the licensee has nonpublic personal financial information, or that individual’s legal representative. Examples include:

(i) An individual who provides nonpublic personal financial information to a licensee in connection with obtaining or seeking to obtain financial, investment or economic advisory services relating to an insurance product or service is a consumer regardless of whether the licensee establishes an ongoing advisory relationship.

(ii) An applicant for insurance prior to the inception of insurance coverage is a licensee’s consumer.

(iii) An individual who is a consumer of another financial institution is not a licensee’s consumer solely because the licensee is acting as agent for, or provides processing or other services to, that financial institution.

(iv) An individual about whom a licensee discloses nonpublic personal financial information to a nonaffiliated third party other than as permitted under Subchapter D (relating to exceptions to limits on disclosures of nonpublic personal financial information) and the individual is one of the following:

(A) A beneficiary of a life insurance policy underwritten by the licensee.

(B) A claimant under an insurance policy issued by the licensee.

(C) An insured or an annuitant under an insurance policy or an annuity, respectively, issued by the licensee.

(D) A mortgagor of a mortgage covered under a mortgage insurance policy.

(v) Provided that the licensee provides the initial, annual and revised notices under § § 146a.11, 146a.12 and 146a.15 (relating to initial privacy notice to consumers required; annual privacy notice to customers required; and revised privacy notices) to the plan sponsor, group or blanket insurance policyholder, group annuity contractholder, or workers’ compensation policyholder, and further provided that the licensee does not disclose to a nonaffiliated third party nonpublic personal financial information about such an individual other than as permitted under Subchapter D, an individual is not the consumer of the licensee solely because the individual is one of the following:

(A) A participant or a beneficiary of an employee benefit plan that the licensee administers or sponsors or for which the licensee acts as a trustee, insurer or fiduciary.

(B) Covered under a group or blanket insurance policy or group annuity contract issued by the licensee.

(C) A claimant in a workers’ compensation plan.

(vi) The individuals described in subparagraph (v) are consumers of a licensee if the licensee does not meet all the conditions of subparagraph (v).

(vii) In no event shall the individuals, solely by virtue of the status described in subparagraph (v), be deemed to be customers for purposes of this chapter.

(viii) An individual is not a licensee’s consumer solely because the individual is a beneficiary of a trust for which the licensee is a trustee.

(ix) An individual is not a licensee’s consumer solely because the individual has designated the licensee as trustee for a trust.

Consumer reporting agency—The term has the same meaning as in section 603(f) of the Federal Fair Credit Reporting Act (15 U.S.C.A. § 1681a(f)).

Control—The term includes any of the following:

(i) Ownership, control or power to vote 25% or more of the outstanding shares of any class of voting security of the company, directly or indirectly, or acting through one or more other persons.

(ii) Control in any manner over the election of a majority of the directors, trustees or general partners (or individuals exercising similar functions) of the company.

(iii) The power to exercise, directly or indirectly, a controlling influence over the management or policies of the company, as determined by the Commissioner.

Customer—A consumer who has a customer relationship with a licensee.

Customer relationship—A continuing relationship between a consumer and a licensee under which the licensee provides one or more insurance products or services to the consumer that are to be used primarily for personal, family or household purposes. Examples are as follows:

(i) A consumer has a continuing relationship with a licensee if either:

(A) The consumer is a current policyholder of an insurance product issued by or through the licensee.

(B) The consumer obtains financial, investment or economic advisory services relating to an insurance product or service from the licensee for a fee.

(ii) A consumer does not have a continuing relationship with a licensee if one of the following applies:

(A) The consumer applies for insurance but does not purchase the insurance.

(B) The licensee sells the consumer airline travel insurance in an isolated transaction.

(C) The individual is no longer a current policyholder of an insurance product or no longer obtains insurance services with or through the licensee.

(D) The consumer is a beneficiary or claimant under a policy and has submitted a claim under a policy choosing a settlement option involving an ongoing relationship with the licensee.

(E) The consumer is a beneficiary or a claimant under a policy and has submitted a claim under that policy choosing a lump sum settlement option.

(F) The customer’s policy is lapsed, expired or otherwise inactive or dormant under the licensee’s business practices, and the licensee has not communicated with the customer about the relationship for a period of 12-consecutive months, other than annual privacy notices, material required by law or regulation, communication at the direction of a state or Federal authority, or promotional materials.

(G) The individual is an insured or an annuitant under an insurance policy or annuity, respectively, but is not the policyholder or owner of the insurance policy or annuity.

(H) The individual’s last known address according to the licensee’s records is deemed invalid. For the purposes of this section, an address of record is deemed invalid if mail sent to that address by the licensee has been returned by the postal authorities as undeliverable and if subsequent attempts by the licensee to obtain a current valid address for the individual have been unsuccessful.

Department—The Insurance Department of the Commonwealth.

Financial institution—An institution the business of which is engaging in activities that are financial in nature or incidental to the financial activities as described in section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C.A. § 1843(k)). The term does not include the following:

(i) A person or entity with respect to any financial activity that is subject to the jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C.A. § § 1—25).

(ii) The Federal Agricultural Mortgage Corporation or any entity charged and operating under the Farm Credit Act of 1971 (12 U.S.C.A. § § 2001—2279cc).

(iii) Institutions chartered by Congress specifically to engage in securitizations, secondary market sales (including sales of servicing rights) or similar transactions related to a transaction of a consumer, as long as the institutions do not sell or transfer nonpublic personal financial information to a nonaffiliated third party.

Financial product or service—A product or service that a financial holding company could offer by engaging in an activity that is financial in nature or incidental to the financial activity under section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C.A. § 1843(k)). Financial service includes a financial institution’s evaluation or brokerage of information that the financial institution collects in connection with a request or an application from a consumer for a financial product or service.

Health care—The term includes the following:

(i) Preventative, diagnostic, therapeutic, rehabilitative, maintenance or palliative care, services, procedures, tests or counseling that either:

(A) Relates to the physical, mental or behavioral condition of an individual.

(B) Affects the structure or function of the human body or any part of the human body, including the banking of blood, sperm, organs or any other tissue.

(ii) Prescribing, dispensing or furnishing to an individual drugs or biologicals, or medical devices or health care equipment and supplies.

Health care provider—A physician or other health care practitioner licensed, accredited or certified to perform specified health services consistent with State law, or a health care facility.

Health information—Any information or data except age or gender, whether oral or recorded in any form or medium, created by or derived from a health care provider or the consumer or customer that relates to one or more of the following:

(i) The past, present or future physical, mental or behavioral health or condition of an individual.

(ii) The provision of health care to an individual.

(iii) Payment for the provision of health care to an individual.

Insurance product or service—A product or service that is offered by a licensee under the insurance laws of the Commonwealth. Insurance service includes a licensee’s evaluation, brokerage or distribution of information that the licensee collects in connection with a request or an application from a consumer for an insurance product or service.

Licensee—

(i) A licensed insurer, as defined in section 201-A of the act (40 P. S. § 65.1-A), a producer and other persons or entities licensed or required to be licensed, or authorized or required to be authorized, or registered or required to be registered under the act or The Insurance Company Law of 1921 (40 P. S. § § 341—999), including health maintenance organizations holding a certificate of authority under section 201 of the Health Care Facilities Act (35 P. S. § 448.201).

(ii) The term does not include:

(A) Bail bondsmen as defined in 42 Pa.C.S. § 5741 (relating to definitions).

(B) Motor vehicle physical damage appraisers as defined in section 2 of the Motor Vehicle Physical Damage Appraiser Act (63 P. S. § 852) and § 62.1 (relating to definitions).

(C) Public adjusters as defined in section 1 of the act of December 20, 1983 (P. L. 260, No. 72) (63 P. S. § 1601) and § 115.1 (relating to definitions).

(D) An entity providing continuing care as defined in section 3 and licensed under section 4 of the Continuing-Care Provider Registration and Disclosure Act (40 P. S. § § 3203 and 3204).

(iii) Subject to subparagraph (iv), the term does not include governmental health insurance programs such as the following:

(A) The Children’s Health Insurance Program as provided for in the Children’s Health Care Act (40 P. S. § § 991.2301—991.2361).

(B) The Medicaid Program as provided for in 62 P. S. § § 441.1—449.

(C) The Medicare+Choice Program as provided for in the Balanced Budget Act of 1997, sections 1851—1859, Medicare Part C under Title XVIII of the Social Security Act.

(iv) The term includes a licensee that enrolls, insures or otherwise provides insurance related services to participants that procure health insurance through a governmental health insurance program exempted under subparagraph (iii).

(v) A licensee is not subject to the notice and opt out requirements for nonpublic personal financial information in this subchapter and Subchapters B—D if the licensee is an employee, agent or other representative of another licensee (‘‘the principal’’) and both of the following apply:

(A) The principal otherwise complies with, and provides the notices required by, this chapter.

(B) The licensee does not disclose nonpublic personal financial information to any person other than the principal or its affiliates in a manner permitted by this chapter.

(vi) Subject to subparagraph (vii), the term ‘‘licensee’’ shall also include a nonadmitted insurer that accepts business placed through a surplus lines licensee (as defined in 40 P. S. § 991.1602 (relating to definition of surplus lines licensee)) in this Commonwealth, but only in regard to the surplus lines placements placed under Article XVI of The Insurance Company Law (40 P. S. § § 991.1601—991.1625).

(vii) A surplus lines licensee or surplus lines insurer shall be deemed to be in compliance with the notice and opt out requirements for nonpublic personal financial information in this subchapter and Subchapters B—D provided both of the following apply:

(A) The surplus lines licensee or insurer does not disclose nonpublic personal financial information of a consumer or a customer to nonaffiliated third parties for any purpose, including joint servicing or marketing under § 146a.31 (relating to exception to opt out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing), except as permitted by § 146a.32 or § 146a.33 (relating to exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information for processing and servicing transactions; and other exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information).

(B) The broker or insurer delivers a notice to the consumer at the time a customer relationship is established on which the following is printed in 16-point type:

PRIVACY NOTICE

‘‘NEITHER THE U. S. BROKERS THAT HAVE HANDLED THIS INSURANCE NOR THE INSURERS THAT HAVE UNDERWRITTED THIS INSURANCE WILL DISCLOSE NONPUBLIC PERSONAL FINANCIAL INFORMATION CONCERNING THE BUYER TO NONAFFILIATED THIRD PARTIES EXCEPT AS PERMITTED BY LAW.’’

Nonaffiliated third party—

(i) Any person except either:

(A) A licensee’s affiliate.

(B) A person employed jointly by a licensee and any company that is not the licensee’s affiliate (but nonaffiliated third party includes the other company that jointly employs the person).

(ii) Nonaffiliated third party includes any company that is an affiliate solely by virtue of the direct or indirect ownership or control of the company by the licensee or its affiliate in conducting merchant banking or investment banking activities of the type described in section 4(k)(4)(H) or insurance company investment activities of the type described in section 4(k)(4)(I) of the Federal Bank Holding Company Act (12 U.S.C.A. § § 1843(k)(4)(H) and (I)).

Nonpublic personal financial information—

(i) The term means the following:

(A) Personally identifiable financial information.

(B) Any list, description or other grouping of consumers (and publicly available information pertaining to them) that is derived using any personally identifiable financial information that is not publicly available.

(ii) The term does not include any of the following:

(A) Publicly available information, except as included on a list described in subparagraph (i)(B).

(B) Any list, description or other grouping of consumers (and publicly available information pertaining to them) that is derived without using any personally identifiable financial information that is not publicly available.

(C) Health information.

(iii) Examples of lists are as follows:

(A) Nonpublic personal financial information includes any list of individuals’ names and street addresses that is derived in whole or in part using personally identifiable financial information that is not publicly available, such as account numbers.

(B) Nonpublic personal financial information does not include any list of individuals’ names and addresses that contains only publicly available information, is not derived in whole or in part using personally identifiable financial information that is not publicly available, and is not disclosed in a manner that indicates that any of the individuals on the list is a consumer of a financial institution.

Personally identifiable financial information—

(i) The term means any of the following:

(A) Information that a consumer provides to a licensee to obtain an insurance product or service from the licensee.

(B) Information about a consumer resulting from a transaction involving an insurance product or service between a licensee and a consumer.

(C) Information that the licensee otherwise obtains about a consumer in connection with providing an insurance product or service to that consumer.

(ii) Examples are as follows:

(A) Information included. Personally identifiable financial information includes:

(I) Information a consumer provides to a licensee on an application to obtain an insurance product or service.

(II) Account balance information and payment history.

(III) The fact that an individual is or has been one of the licensee’s customers or has obtained an insurance product or service from the licensee.

(IV) Information about the licensee’s consumer if it is disclosed in a manner that indicates that the individual is or has been the licensee’s consumer.

(V) Information that a consumer provides to a licensee or that the licensee or its agent otherwise obtains in connection with collecting on a loan or servicing a loan.

(VI) Information the licensee collects through an Internet cookie (an information-collecting device from a web server).

(VII) Information from a consumer report.

(B) Information not included. Personally identifiable financial information does not include:

(I) A list of names and addresses of customers of an entity that is not a financial institution.

(II) Information that does not identify a consumer, such as aggregate information or blind data that does not contain personal identifiers such as account numbers, names or addresses.

(III) Health information.

Publicly available information—Information that a licensee has a reasonable basis to believe is lawfully made available to the public from one or more of the following:

(i) Federal, State or local government records.

(ii) Widely distributed media.

(iii) Disclosures to the public that are required to be made by Federal, State or local law.

Reasonable basis—

(i) A licensee has a reasonable basis to believe that information is lawfully made available to the public if the licensee has taken steps to determine the following:

(A) That the information is of the type that is available to the public.

(B) Whether an individual can direct that the information not be made available to the public and, if so, that the licensee’s consumer has not done so.

(ii) The term includes the following conditions:

(A) A licensee has a reasonable basis to believe that mortgage information is lawfully made available to the public if the licensee has determined that the information is of the type included on the public record in the jurisdiction where the mortgage would be recorded.

(B) A licensee has a reasonable basis to believe that an individual’s telephone number is lawfully made available to the public if the licensee has located the telephone number in the telephone book or the consumer has informed the licensee that the telephone number is not unlisted.

(iii) Examples are as follows:

(A) Government records. Publicly available information in government records includes information in government real estate records and security interest filings.

(B) Widely distributed media. Publicly available information from widely distributed media includes information from a telephone book, a television or radio program, a newspaper or a website that is available to the public on an unrestricted basis. A website is not restricted merely because an Internet service provider or a site operator requires a fee or a password, so long as access is available to the public.

Cross References
31 Pa. Code § 146a.2. Definitions.The following words and terms, when used in this chapter, have the following meanings, unless the context requires otherwise:

Act—The Insurance Department Act of 1921 (40 P. S. § § 1—321)

Affiliate—A company that controls, is controlled by or is under common control with another company.

Clear and conspicuous—That a notice is reasonably understandable and designed to call attention to the nature and significance of the information in the notice. Examples include:

(i) Reasonably understandable. A licensee makes its notice reasonably understandable if it does all of the following:

(A) Presents the information in the notice in clear, concise sentences, paragraphs and sections.

(B) Uses short explanatory sentences or bullet lists whenever possible.

(C) Uses definite, concrete, everyday words and active voice whenever possible.

(D) Avoids multiple negatives.

(E) Avoids legal and highly technical business terminology whenever possible.

(F) Avoids explanations that are imprecise and readily subject to different interpretations.

(ii) Designed to call attention. A licensee designs its notice to call attention to the nature and significance of the information in it if the licensee does all of the following:

(A) Uses a plain-language heading to call attention to the notice.

(B) Uses a typeface and type size that are easy to read.

(C) Provides wide margins and ample line spacing.

(D) Uses boldface or italics for key words.

(E) 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.

(iii) Notices on websites. If a licensee provides a notice on a webpage, the licensee designs its notice to call attention to the nature and significance of the information in it if the licensee uses text or visual cues to encourage scrolling down the page if necessary to view the entire notice and ensure that other elements on the website (such as text, graphics, hyperlinks or sound) do not distract attention from the notice, and the licensee either:

(A) Places the notice on a screen that consumers frequently access, such as a page on which transactions are conducted.

(B) Places a link on a screen that consumers frequently access, such as a page on which transactions are conducted, that connects directly to the notice and is labeled appropriately to convey the importance, nature and relevance of the notice.

Collect—To obtain information that the licensee organizes or can retrieve by the name of an individual or by identifying number, symbol or other identifying particular assigned to the individual, irrespective of the source of the underlying information.

Commissioner—The Insurance Commissioner of the Commonwealth.

Company—A corporation, limited liability company, business trust, general or limited partnership, association, sole proprietorship or similar organization.

Consumer—An individual who seeks to obtain, obtains or has obtained an insurance product or service from a licensee that is to be used primarily for personal, family or household purposes, and about whom the licensee has nonpublic personal financial information, or that individual’s legal representative. Examples include:

(i) An individual who provides nonpublic personal financial information to a licensee in connection with obtaining or seeking to obtain financial, investment or economic advisory services relating to an insurance product or service is a consumer regardless of whether the licensee establishes an ongoing advisory relationship.

(ii) An applicant for insurance prior to the inception of insurance coverage is a licensee’s consumer.

(iii) An individual who is a consumer of another financial institution is not a licensee’s consumer solely because the licensee is acting as agent for, or provides processing or other services to, that financial institution.

(iv) An individual about whom a licensee discloses nonpublic personal financial information to a nonaffiliated third party other than as permitted under Subchapter D (relating to exceptions to limits on disclosures of nonpublic personal financial information) and the individual is one of the following:

(A) A beneficiary of a life insurance policy underwritten by the licensee.

(B) A claimant under an insurance policy issued by the licensee.

(C) An insured or an annuitant under an insurance policy or an annuity, respectively, issued by the licensee.

(D) A mortgagor of a mortgage covered under a mortgage insurance policy.

(v) Provided that the licensee provides the initial, annual and revised notices under § § 146a.11, 146a.12 and 146a.15 (relating to initial privacy notice to consumers required; annual privacy notice to customers required; and revised privacy notices) to the plan sponsor, group or blanket insurance policyholder, group annuity contractholder, or workers’ compensation policyholder, and further provided that the licensee does not disclose to a nonaffiliated third party nonpublic personal financial information about such an individual other than as permitted under Subchapter D, an individual is not the consumer of the licensee solely because the individual is one of the following:

(A) A participant or a beneficiary of an employee benefit plan that the licensee administers or sponsors or for which the licensee acts as a trustee, insurer or fiduciary.

(B) Covered under a group or blanket insurance policy or group annuity contract issued by the licensee.

(C) A claimant in a workers’ compensation plan.

(vi) The individuals described in subparagraph (v) are consumers of a licensee if the licensee does not meet all the conditions of subparagraph (v).

(vii) In no event shall the individuals, solely by virtue of the status described in subparagraph (v), be deemed to be customers for purposes of this chapter.

(viii) An individual is not a licensee’s consumer solely because the individual is a beneficiary of a trust for which the licensee is a trustee.

(ix) An individual is not a licensee’s consumer solely because the individual has designated the licensee as trustee for a trust.

Consumer reporting agency—The term has the same meaning as in section 603(f) of the Federal Fair Credit Reporting Act (15 U.S.C.A. § 1681a(f)).

Control—The term includes any of the following:

(i) Ownership, control or power to vote 25% or more of the outstanding shares of any class of voting security of the company, directly or indirectly, or acting through one or more other persons.

(ii) Control in any manner over the election of a majority of the directors, trustees or general partners (or individuals exercising similar functions) of the company.

(iii) The power to exercise, directly or indirectly, a controlling influence over the management or policies of the company, as determined by the Commissioner.

Customer—A consumer who has a customer relationship with a licensee.

Customer relationship—A continuing relationship between a consumer and a licensee under which the licensee provides one or more insurance products or services to the consumer that are to be used primarily for personal, family or household purposes. Examples are as follows:

(i) A consumer has a continuing relationship with a licensee if either:

(A) The consumer is a current policyholder of an insurance product issued by or through the licensee.

(B) The consumer obtains financial, investment or economic advisory services relating to an insurance product or service from the licensee for a fee.

(ii) A consumer does not have a continuing relationship with a licensee if one of the following applies:

(A) The consumer applies for insurance but does not purchase the insurance.

(B) The licensee sells the consumer airline travel insurance in an isolated transaction.

(C) The individual is no longer a current policyholder of an insurance product or no longer obtains insurance services with or through the licensee.

(D) The consumer is a beneficiary or claimant under a policy and has submitted a claim under a policy choosing a settlement option involving an ongoing relationship with the licensee.

(E) The consumer is a beneficiary or a claimant under a policy and has submitted a claim under that policy choosing a lump sum settlement option.

(F) The customer’s policy is lapsed, expired or otherwise inactive or dormant under the licensee’s business practices, and the licensee has not communicated with the customer about the relationship for a period of 12-consecutive months, other than annual privacy notices, material required by law or regulation, communication at the direction of a state or Federal authority, or promotional materials.

(G) The individual is an insured or an annuitant under an insurance policy or annuity, respectively, but is not the policyholder or owner of the insurance policy or annuity.

(H) The individual’s last known address according to the licensee’s records is deemed invalid. For the purposes of this section, an address of record is deemed invalid if mail sent to that address by the licensee has been returned by the postal authorities as undeliverable and if subsequent attempts by the licensee to obtain a current valid address for the individual have been unsuccessful.

Department—The Insurance Department of the Commonwealth.

Financial institution—An institution the business of which is engaging in activities that are financial in nature or incidental to the financial activities as described in section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C.A. § 1843(k)). The term does not include the following:

(i) A person or entity with respect to any financial activity that is subject to the jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C.A. § § 1—25).

(ii) The Federal Agricultural Mortgage Corporation or any entity charged and operating under the Farm Credit Act of 1971 (12 U.S.C.A. § § 2001—2279cc).

(iii) Institutions chartered by Congress specifically to engage in securitizations, secondary market sales (including sales of servicing rights) or similar transactions related to a transaction of a consumer, as long as the institutions do not sell or transfer nonpublic personal financial information to a nonaffiliated third party.

Financial product or service—A product or service that a financial holding company could offer by engaging in an activity that is financial in nature or incidental to the financial activity under section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C.A. § 1843(k)). Financial service includes a financial institution’s evaluation or brokerage of information that the financial institution collects in connection with a request or an application from a consumer for a financial product or service.

Health care—The term includes the following:

(i) Preventative, diagnostic, therapeutic, rehabilitative, maintenance or palliative care, services, procedures, tests or counseling that either:

(A) Relates to the physical, mental or behavioral condition of an individual.

(B) Affects the structure or function of the human body or any part of the human body, including the banking of blood, sperm, organs or any other tissue.

(ii) Prescribing, dispensing or furnishing to an individual drugs or biologicals, or medical devices or health care equipment and supplies.

Health care provider—A physician or other health care practitioner licensed, accredited or certified to perform specified health services consistent with State law, or a health care facility.

Health information—Any information or data except age or gender, whether oral or recorded in any form or medium, created by or derived from a health care provider or the consumer or customer that relates to one or more of the following:

(i) The past, present or future physical, mental or behavioral health or condition of an individual.

(ii) The provision of health care to an individual.

(iii) Payment for the provision of health care to an individual.

Insurance product or service—A product or service that is offered by a licensee under the insurance laws of the Commonwealth. Insurance service includes a licensee’s evaluation, brokerage or distribution of information that the licensee collects in connection with a request or an application from a consumer for an insurance product or service.

Licensee—

(i) A licensed insurer, as defined in section 201-A of the act (40 P. S. § 65.1-A), a producer and other persons or entities licensed or required to be licensed, or authorized or required to be authorized, or registered or required to be registered under the act or The Insurance Company Law of 1921 (40 P. S. § § 341—999), including health maintenance organizations holding a certificate of authority under section 201 of the Health Care Facilities Act (35 P. S. § 448.201).

(ii) The term does not include:

(A) Bail bondsmen as defined in 42 Pa.C.S. § 5741 (relating to definitions).

(B) Motor vehicle physical damage appraisers as defined in section 2 of the Motor Vehicle Physical Damage Appraiser Act (63 P. S. § 852) and § 62.1 (relating to definitions).

(C) Public adjusters as defined in section 1 of the act of December 20, 1983 (P. L. 260, No. 72) (63 P. S. § 1601) and § 115.1 (relating to definitions).

(D) An entity providing continuing care as defined in section 3 and licensed under section 4 of the Continuing-Care Provider Registration and Disclosure Act (40 P. S. § § 3203 and 3204).

(iii) Subject to subparagraph (iv), the term does not include governmental health insurance programs such as the following:

(A) The Children’s Health Insurance Program as provided for in the Children’s Health Care Act (40 P. S. § § 991.2301—991.2361).

(B) The Medicaid Program as provided for in 62 P. S. § § 441.1—449.

(C) The Medicare+Choice Program as provided for in the Balanced Budget Act of 1997, sections 1851—1859, Medicare Part C under Title XVIII of the Social Security Act.

(iv) The term includes a licensee that enrolls, insures or otherwise provides insurance related services to participants that procure health insurance through a governmental health insurance program exempted under subparagraph (iii).

(v) A licensee is not subject to the notice and opt out requirements for nonpublic personal financial information in this subchapter and Subchapters B—D if the licensee is an employee, agent or other representative of another licensee (‘‘the principal’’) and both of the following apply:

(A) The principal otherwise complies with, and provides the notices required by, this chapter.

(B) The licensee does not disclose nonpublic personal financial information to any person other than the principal or its affiliates in a manner permitted by this chapter.

(vi) Subject to subparagraph (vii), the term ‘‘licensee’’ shall also include a nonadmitted insurer that accepts business placed through a surplus lines licensee (as defined in 40 P. S. § 991.1602 (relating to definition of surplus lines licensee)) in this Commonwealth, but only in regard to the surplus lines placements placed under Article XVI of The Insurance Company Law (40 P. S. § § 991.1601—991.1625).

(vii) A surplus lines licensee or surplus lines insurer shall be deemed to be in compliance with the notice and opt out requirements for nonpublic personal financial information in this subchapter and Subchapters B—D provided both of the following apply:

(A) The surplus lines licensee or insurer does not disclose nonpublic personal financial information of a consumer or a customer to nonaffiliated third parties for any purpose, including joint servicing or marketing under § 146a.31 (relating to exception to opt out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing), except as permitted by § 146a.32 or § 146a.33 (relating to exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information for processing and servicing transactions; and other exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information).

(B) The broker or insurer delivers a notice to the consumer at the time a customer relationship is established on which the following is printed in 16-point type:

PRIVACY NOTICE

‘‘NEITHER THE U. S. BROKERS THAT HAVE HANDLED THIS INSURANCE NOR THE INSURERS THAT HAVE UNDERWRITTED THIS INSURANCE WILL DISCLOSE NONPUBLIC PERSONAL FINANCIAL INFORMATION CONCERNING THE BUYER TO NONAFFILIATED THIRD PARTIES EXCEPT AS PERMITTED BY LAW.’’

Nonaffiliated third party—

(i) Any person except either:

(A) A licensee’s affiliate.

(B) A person employed jointly by a licensee and any company that is not the licensee’s affiliate (but nonaffiliated third party includes the other company that jointly employs the person).

(ii) Nonaffiliated third party includes any company that is an affiliate solely by virtue of the direct or indirect ownership or control of the company by the licensee or its affiliate in conducting merchant banking or investment banking activities of the type described in section 4(k)(4)(H) or insurance company investment activities of the type described in section 4(k)(4)(I) of the Federal Bank Holding Company Act (12 U.S.C.A. § § 1843(k)(4)(H) and (I)).

Nonpublic personal financial information—

(i) The term means the following:

(A) Personally identifiable financial information.

(B) Any list, description or other grouping of consumers (and publicly available information pertaining to them) that is derived using any personally identifiable financial information that is not publicly available.

(ii) The term does not include any of the following:

(A) Publicly available information, except as included on a list described in subparagraph (i)(B).

(B) Any list, description or other grouping of consumers (and publicly available information pertaining to them) that is derived without using any personally identifiable financial information that is not publicly available.

(C) Health information.

(iii) Examples of lists are as follows:

(A) Nonpublic personal financial information includes any list of individuals’ names and street addresses that is derived in whole or in part using personally identifiable financial information that is not publicly available, such as account numbers.

(B) Nonpublic personal financial information does not include any list of individuals’ names and addresses that contains only publicly available information, is not derived in whole or in part using personally identifiable financial information that is not publicly available, and is not disclosed in a manner that indicates that any of the individuals on the list is a consumer of a financial institution.

Personally identifiable financial information—

(i) The term means any of the following:

(A) Information that a consumer provides to a licensee to obtain an insurance product or service from the licensee.

(B) Information about a consumer resulting from a transaction involving an insurance product or service between a licensee and a consumer.

(C) Information that the licensee otherwise obtains about a consumer in connection with providing an insurance product or service to that consumer.

(ii) Examples are as follows:

(A) Information included. Personally identifiable financial information includes:

(I) Information a consumer provides to a licensee on an application to obtain an insurance product or service.

(II) Account balance information and payment history.

(III) The fact that an individual is or has been one of the licensee’s customers or has obtained an insurance product or service from the licensee.

(IV) Information about the licensee’s consumer if it is disclosed in a manner that indicates that the individual is or has been the licensee’s consumer.

(V) Information that a consumer provides to a licensee or that the licensee or its agent otherwise obtains in connection with collecting on a loan or servicing a loan.

(VI) Information the licensee collects through an Internet cookie (an information-collecting device from a web server).

(VII) Information from a consumer report.

(B) Information not included. Personally identifiable financial information does not include:

(I) A list of names and addresses of customers of an entity that is not a financial institution.

(II) Information that does not identify a consumer, such as aggregate information or blind data that does not contain personal identifiers such as account numbers, names or addresses.

(III) Health information.

Publicly available information—Information that a licensee has a reasonable basis to believe is lawfully made available to the public from one or more of the following:

(i) Federal, State or local government records.

(ii) Widely distributed media.

(iii) Disclosures to the public that are required to be made by Federal, State or local law.

Reasonable basis—

(i) A licensee has a reasonable basis to believe that information is lawfully made available to the public if the licensee has taken steps to determine the following:

(A) That the information is of the type that is available to the public.

(B) Whether an individual can direct that the information not be made available to the public and, if so, that the licensee’s consumer has not done so.

(ii) The term includes the following conditions:

(A) A licensee has a reasonable basis to believe that mortgage information is lawfully made available to the public if the licensee has determined that the information is of the type included on the public record in the jurisdiction where the mortgage would be recorded.

(B) A licensee has a reasonable basis to believe that an individual’s telephone number is lawfully made available to the public if the licensee has located the telephone number in the telephone book or the consumer has informed the licensee that the telephone number is not unlisted.

(iii) Examples are as follows:

(A) Government records. Publicly available information in government records includes information in government real estate records and security interest filings.

(B) Widely distributed media. Publicly available information from widely distributed media includes information from a telephone book, a television or radio program, a newspaper or a website that is available to the public on an unrestricted basis. A website is not restricted merely because an Internet service provider or a site operator requires a fee or a password, so long as access is available to the public.

Cross References

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31 Pa. Code § 146a.21. Limits on disclosure of nonpublic personal financial information to nonaffiliated third parties. (a) Conditions for disclosure. Except as otherwise authorized in this chapter, a licensee may not, directly or through an affiliate, disclose nonpublic personal financial information about a consumer to a nonaffiliated third party unless all of the following conditions are met:

(1) The licensee has provided to the consumer an initial notice as required under § 146a.11 (relating to initial privacy notice to consumers required).

(2) The licensee has provided to the consumer an opt out notice as required in § 146a.14 (relating to form of opt out notice to consumers and opt out methods).

(3) The licensee has given the consumer a reasonable opportunity, before it discloses the information to the nonaffiliated third party, to opt out of the disclosure.

(4) The consumer does not opt out.

(b) Opt out definition. Opt out means a direction by the consumer that the licensee not disclose nonpublic personal financial information about that consumer to a nonaffiliated third party, other than as permitted by Subchapter D (relating to exceptions to limits on disclosure of nonpublic personal financial information).

(c) Examples of reasonable opportunity to opt out. A licensee provides a consumer with a reasonable opportunity to opt out if:

(1) By mail. The licensee mails the notices required in subsection (a) to the consumer and allows the consumer to opt out by mailing a form, calling a toll-free telephone number or any other reasonable means within 30 days from the date the licensee mailed the notices.

(2) By electronic means. A customer opens an online account with a licensee and agrees to receive the notices required in subsection (a) electronically, and the licensee allows the customer to opt out by any reasonable means within 30 days after the date that the customer acknowledges receipt of the notices in conjunction with opening the account.

(3) Isolated transaction with consumer. For an isolated transaction such as providing the consumer with an insurance quote, a licensee provides the consumer with a reasonable opportunity to opt out if the licensee provides the notices required in subsection (a) at the time of the transaction and requests that the consumer decide, as a necessary part of the transaction, whether to opt out before completing the transaction.

(d) Application of opt out to all consumers and all nonpublic personal financial information.

(1) A licensee shall comply with this section, regardless of whether the licensee and the consumer have established a customer relationship.

(2) Unless a licensee complies with this section, the licensee may not, directly or through an affiliate, disclose nonpublic personal financial information about a consumer that the licensee has collected, regardless of whether the licensee collected it before or after receiving the direction to opt out from the consumer.

(e) Partial opt out. A licensee may allow a consumer to select certain nonpublic personal financial information or certain nonaffiliated third parties with respect to which the consumer wishes to opt out.
31 Pa. Code § 146a.21. Limits on disclosure of nonpublic personal financial information to nonaffiliated third parties. (a) Conditions for disclosure. Except as otherwise authorized in this chapter, a licensee may not, directly or through an affiliate, disclose nonpublic personal financial information about a consumer to a nonaffiliated third party unless all of the following conditions are met:

(1) The licensee has provided to the consumer an initial notice as required under § 146a.11 (relating to initial privacy notice to consumers required).

(2) The licensee has provided to the consumer an opt out notice as required in § 146a.14 (relating to form of opt out notice to consumers and opt out methods).

(3) The licensee has given the consumer a reasonable opportunity, before it discloses the information to the nonaffiliated third party, to opt out of the disclosure.

(4) The consumer does not opt out.

(b) Opt out definition. Opt out means a direction by the consumer that the licensee not disclose nonpublic personal financial information about that consumer to a nonaffiliated third party, other than as permitted by Subchapter D (relating to exceptions to limits on disclosure of nonpublic personal financial information).

(c) Examples of reasonable opportunity to opt out. A licensee provides a consumer with a reasonable opportunity to opt out if:

(1) By mail. The licensee mails the notices required in subsection (a) to the consumer and allows the consumer to opt out by mailing a form, calling a toll-free telephone number or any other reasonable means within 30 days from the date the licensee mailed the notices.

(2) By electronic means. A customer opens an online account with a licensee and agrees to receive the notices required in subsection (a) electronically, and the licensee allows the customer to opt out by any reasonable means within 30 days after the date that the customer acknowledges receipt of the notices in conjunction with opening the account.

(3) Isolated transaction with consumer. For an isolated transaction such as providing the consumer with an insurance quote, a licensee provides the consumer with a reasonable opportunity to opt out if the licensee provides the notices required in subsection (a) at the time of the transaction and requests that the consumer decide, as a necessary part of the transaction, whether to opt out before completing the transaction.

(d) Application of opt out to all consumers and all nonpublic personal financial information.

(1) A licensee shall comply with this section, regardless of whether the licensee and the consumer have established a customer relationship.

(2) Unless a licensee complies with this section, the licensee may not, directly or through an affiliate, disclose nonpublic personal financial information about a consumer that the licensee has collected, regardless of whether the licensee collected it before or after receiving the direction to opt out from the consumer.

(e) Partial opt out. A licensee may allow a consumer to select certain nonpublic personal financial information or certain nonaffiliated third parties with respect to which the consumer wishes to opt out.

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31 Pa. Code § 146a.22. Limits on redisclosure and reuse of nonpublic personal financial information. (a) Information the licensee receives under an exception.

(1) If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution under an exception in § 146a.32 or § 146a.33 (relating to exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information for processing and servicing transactions; and other exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information), the licensee’s disclosure and use of that information is limited as follows:

(i) The licensee may disclose the information to the affiliates of the financial institution from which the licensee received the information.

(ii) The licensee may disclose the information to its affiliates, but the licensee’s affiliates may, in turn, disclose and use the information only to the extent that the licensee may disclose and use the information.

(iii) The licensee may disclose and use the information under an exception in § 146a.32 or § 146a.33, in the ordinary course of business to carry out the activity covered by the exception under which the licensee received the information.

(2) Example. If a licensee receives information from a nonaffiliated financial institution for claims settlement purposes, the licensee may disclose the information for fraud prevention, or in response to a properly authorized subpoena. The licensee may not disclose that information to a nonaffiliated third party for marketing purposes or use that information for its own marketing purposes.

(b) Information a licensee receives outside of an exception.

(1) If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution other than under an exception in § 146a.32 or § 146a.33, the licensee may disclose the information only:

(i) To the affiliates of the financial institution from which the licensee received the information.

(ii) To its affiliates, but its affiliates may, in turn, disclose the information only to the extent that the licensee may disclose the information.

(iii) To any other person, if the disclosure would be lawful if made directly to that person by the financial institution from which the licensee received the information.

(2) Example. If a licensee obtains a customer list from a nonaffiliated financial institution outside of the exceptions in § 146a.32 or § 146a.33 the licensee may do the following:

(i) Use that list for its own purposes.

(ii) Disclose that list to another nonaffiliated third party only if the financial institution from which the licensee purchased the list could have lawfully disclosed the list to that nonaffiliated third party. That is, the licensee may disclose the list in accordance with the privacy policy of the financial institution from which the licensee received the list, as limited by the opt out direction of each consumer whose nonpublic personal financial information the licensee intends to disclose, and the licensee may disclose the list in accordance with an exception in § 146a.32 or § 146a.33, such as to the licensee’s attorneys or accountants.

(c) Information a licensee discloses under an exception. If a licensee discloses nonpublic personal financial information to a nonaffiliated third party under an exception in § 146a.32 or § 146a.33, the nonaffiliated third party may disclose and use that information only as follows:

(1) The nonaffiliated third party may disclose the information to the licensee’s affiliates.

(2) The nonaffiliated third party may disclose the information to its affiliates, but its affiliates may, in turn, disclose and use the information only to the extent that the nonaffiliated third party may disclose and use the information.

(3) The nonaffiliated third party may disclose and use the information under an exception in § 146a.32 or § 146a.33, in the ordinary course of business to carry out the activity covered by the exception under which the licensee received the information.

(d) Information a licensee discloses outside of an exception. If a licensee discloses nonpublic personal financial information to a nonaffiliated third party other than under an exception in § 146a.32 or § 146a.33, the nonaffiliated third party may disclose the information only:

(1) To the licensee’s affiliates.

(2) To the nonaffiliated third party’s affiliates, but the nonaffiliated third party’s affiliates, in turn, may disclose the information only to the extent the nonaffiliated third party can disclose the information.

(3) To any other person, if the disclosure would be lawful if the licensee made it directly to that person.
31 Pa. Code § 146a.22. Limits on redisclosure and reuse of nonpublic personal financial information. (a) Information the licensee receives under an exception.

(1) If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution under an exception in § 146a.32 or § 146a.33 (relating to exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information for processing and servicing transactions; and other exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information), the licensee’s disclosure and use of that information is limited as follows:

(i) The licensee may disclose the information to the affiliates of the financial institution from which the licensee received the information.

(ii) The licensee may disclose the information to its affiliates, but the licensee’s affiliates may, in turn, disclose and use the information only to the extent that the licensee may disclose and use the information.

(iii) The licensee may disclose and use the information under an exception in § 146a.32 or § 146a.33, in the ordinary course of business to carry out the activity covered by the exception under which the licensee received the information.

(2) Example. If a licensee receives information from a nonaffiliated financial institution for claims settlement purposes, the licensee may disclose the information for fraud prevention, or in response to a properly authorized subpoena. The licensee may not disclose that information to a nonaffiliated third party for marketing purposes or use that information for its own marketing purposes.

(b) Information a licensee receives outside of an exception.

(1) If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution other than under an exception in § 146a.32 or § 146a.33, the licensee may disclose the information only:

(i) To the affiliates of the financial institution from which the licensee received the information.

(ii) To its affiliates, but its affiliates may, in turn, disclose the information only to the extent that the licensee may disclose the information.

(iii) To any other person, if the disclosure would be lawful if made directly to that person by the financial institution from which the licensee received the information.

(2) Example. If a licensee obtains a customer list from a nonaffiliated financial institution outside of the exceptions in § 146a.32 or § 146a.33 the licensee may do the following:

(i) Use that list for its own purposes.

(ii) Disclose that list to another nonaffiliated third party only if the financial institution from which the licensee purchased the list could have lawfully disclosed the list to that nonaffiliated third party. That is, the licensee may disclose the list in accordance with the privacy policy of the financial institution from which the licensee received the list, as limited by the opt out direction of each consumer whose nonpublic personal financial information the licensee intends to disclose, and the licensee may disclose the list in accordance with an exception in § 146a.32 or § 146a.33, such as to the licensee’s attorneys or accountants.

(c) Information a licensee discloses under an exception. If a licensee discloses nonpublic personal financial information to a nonaffiliated third party under an exception in § 146a.32 or § 146a.33, the nonaffiliated third party may disclose and use that information only as follows:

(1) The nonaffiliated third party may disclose the information to the licensee’s affiliates.

(2) The nonaffiliated third party may disclose the information to its affiliates, but its affiliates may, in turn, disclose and use the information only to the extent that the nonaffiliated third party may disclose and use the information.

(3) The nonaffiliated third party may disclose and use the information under an exception in § 146a.32 or § 146a.33, in the ordinary course of business to carry out the activity covered by the exception under which the licensee received the information.

(d) Information a licensee discloses outside of an exception. If a licensee discloses nonpublic personal financial information to a nonaffiliated third party other than under an exception in § 146a.32 or § 146a.33, the nonaffiliated third party may disclose the information only:

(1) To the licensee’s affiliates.

(2) To the nonaffiliated third party’s affiliates, but the nonaffiliated third party’s affiliates, in turn, may disclose the information only to the extent the nonaffiliated third party can disclose the information.

(3) To any other person, if the disclosure would be lawful if the licensee made it directly to that person.

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31 Pa. Code § 146a.23. Limits on sharing account number information for marketing purposes. (a) General prohibition on disclosure of account numbers. A licensee may not, directly or through an affiliate, disclose, other than to a consumer reporting agency, a policy number or similar form of access number or access code for a consumer’s policy or transaction account to any nonaffiliated third party for use in telemarketing, direct mail marketing or other marketing through electronic mail to the consumer.

(b) Exceptions. Subsection (a) does not apply if a licensee discloses a policy number or similar form of access number or access code to any of the following:

(1) The licensee’s service provider solely in order to perform marketing for the licensee’s own products or services, as long as the service provider is not authorized to directly initiate charges to the account.

(2) A licensee who is a producer solely in order to perform marketing for the licensee’s own products or services.

(3) A participant in an affinity or similar program where the participants in the program are identified to the customer when the customer enters into the program.

(c) Examples.

(1) Policy number. A policy number, or similar form of access number or access code, does not include a number or code in an encrypted form, as long as the licensee does not provide the recipient with a means to decode the number or code.

(2) Policy or transaction account. For the purposes of this section, a policy or transaction account is an account other than a deposit account or a credit card account. A policy or transaction account does not include an account to which third parties cannot initiate charges.
31 Pa. Code § 146a.23. Limits on sharing account number information for marketing purposes. (a) General prohibition on disclosure of account numbers. A licensee may not, directly or through an affiliate, disclose, other than to a consumer reporting agency, a policy number or similar form of access number or access code for a consumer’s policy or transaction account to any nonaffiliated third party for use in telemarketing, direct mail marketing or other marketing through electronic mail to the consumer.

(b) Exceptions. Subsection (a) does not apply if a licensee discloses a policy number or similar form of access number or access code to any of the following:

(1) The licensee’s service provider solely in order to perform marketing for the licensee’s own products or services, as long as the service provider is not authorized to directly initiate charges to the account.

(2) A licensee who is a producer solely in order to perform marketing for the licensee’s own products or services.

(3) A participant in an affinity or similar program where the participants in the program are identified to the customer when the customer enters into the program.

(c) Examples.

(1) Policy number. A policy number, or similar form of access number or access code, does not include a number or code in an encrypted form, as long as the licensee does not provide the recipient with a means to decode the number or code.

(2) Policy or transaction account. For the purposes of this section, a policy or transaction account is an account other than a deposit account or a credit card account. A policy or transaction account does not include an account to which third parties cannot initiate charges.

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31 Pa. Code § 146a.32. Exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information for processing and servicing transactions. (a) Exceptions for processing transactions at consumer’s request. The requirements for initial notice in § 146a.11(a)(2) (relating to initial privacy notice to consumers required), the opt out in § § 146a.14 and 146a.21 (relating to form of opt out notice to consumers and opt out methods; and limitation on disclosure of nonpublic personal financial information to nonaffiliated third parties), and service providers and joint marketing in § 146a.31 (relating to exception to opt out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing) do not apply if the licensee discloses nonpublic personal financial information as necessary to effect, administer or enforce a transaction that a consumer requests or authorizes, or in connection with any of the following:

(1) Servicing or processing an insurance product or service that a consumer requests or authorizes.

(2) Maintaining or servicing the consumer’s account with a licensee, or with another entity as part of a private label credit card program or other extension of credit on behalf of that entity.

(3) A proposed or actual securitization, secondary market sale (including sales of servicing rights) or similar transaction related to a transaction of the consumer.

(4) Reinsurance or stop loss or excess loss insurance.

(b) Necessary to effect, administer or enforce a transaction. When used in this section, ‘‘necessary to effect, administer or enforce a transaction’’ means that the disclosure is required or is either of the following:

(1) One of the lawful or appropriate methods, to enforce the licensee’s rights or the rights of other persons engaged in carrying out the financial transaction or providing the product or service.

(2) A usual, appropriate or acceptable method to do one or more of the following:

(i) Carry out the transaction or the product or service business of which the transaction is a part, and record, service or maintain the consumer’s account in the ordinary course of providing the insurance product or service.

(ii) Administer or service benefits or claims relating to the transaction or the product or service business of which it is a part.

(iii) Provide a confirmation, explanation, statement or other record of the transaction, or information on the status or value of the insurance product or service to the consumer, the consumer’s producer, or a policyholder or the policyholder’s agent, producer, or broker with respect to a claim asserted by, or paid to, a consumer under a policy.

(iv) Accrue or recognize incentives or bonuses associated with the transaction that are provided by a licensee or any other party.

(v) Underwrite insurance at the consumer’s request or for any of the following purposes as they relate to a consumer’s insurance, or, when the consumer is a workers’ compensation claimant or third party claimant, to the policyholder’s insurance: account administration, reporting, investigating or preventing fraud or material misrepresentation, processing premium payments, processing, adjusting, paying, and settling insurance claims, administering insurance benefits (including utilization review activities), participating in research projects or as otherwise required or specifically permitted by Federal or State law.

(vi) Use in connection with any of the following:

(A) The authorization, settlement, billing, processing, clearing, transferring, reconciling or collection of amounts charged, debited or otherwise paid using a debit, credit or other payment card, check or account number, or by other payment means.

(B) The transfer of receivables, accounts or interests therein.

(C) The audit of debit, credit or other payment information.

Cross References
31 Pa. Code § 146a.32. Exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information for processing and servicing transactions. (a) Exceptions for processing transactions at consumer’s request. The requirements for initial notice in § 146a.11(a)(2) (relating to initial privacy notice to consumers required), the opt out in § § 146a.14 and 146a.21 (relating to form of opt out notice to consumers and opt out methods; and limitation on disclosure of nonpublic personal financial information to nonaffiliated third parties), and service providers and joint marketing in § 146a.31 (relating to exception to opt out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing) do not apply if the licensee discloses nonpublic personal financial information as necessary to effect, administer or enforce a transaction that a consumer requests or authorizes, or in connection with any of the following:

(1) Servicing or processing an insurance product or service that a consumer requests or authorizes.

(2) Maintaining or servicing the consumer’s account with a licensee, or with another entity as part of a private label credit card program or other extension of credit on behalf of that entity.

(3) A proposed or actual securitization, secondary market sale (including sales of servicing rights) or similar transaction related to a transaction of the consumer.

(4) Reinsurance or stop loss or excess loss insurance.

(b) Necessary to effect, administer or enforce a transaction. When used in this section, ‘‘necessary to effect, administer or enforce a transaction’’ means that the disclosure is required or is either of the following:

(1) One of the lawful or appropriate methods, to enforce the licensee’s rights or the rights of other persons engaged in carrying out the financial transaction or providing the product or service.

(2) A usual, appropriate or acceptable method to do one or more of the following:

(i) Carry out the transaction or the product or service business of which the transaction is a part, and record, service or maintain the consumer’s account in the ordinary course of providing the insurance product or service.

(ii) Administer or service benefits or claims relating to the transaction or the product or service business of which it is a part.

(iii) Provide a confirmation, explanation, statement or other record of the transaction, or information on the status or value of the insurance product or service to the consumer, the consumer’s producer, or a policyholder or the policyholder’s agent, producer, or broker with respect to a claim asserted by, or paid to, a consumer under a policy.

(iv) Accrue or recognize incentives or bonuses associated with the transaction that are provided by a licensee or any other party.

(v) Underwrite insurance at the consumer’s request or for any of the following purposes as they relate to a consumer’s insurance, or, when the consumer is a workers’ compensation claimant or third party claimant, to the policyholder’s insurance: account administration, reporting, investigating or preventing fraud or material misrepresentation, processing premium payments, processing, adjusting, paying, and settling insurance claims, administering insurance benefits (including utilization review activities), participating in research projects or as otherwise required or specifically permitted by Federal or State law.

(vi) Use in connection with any of the following:

(A) The authorization, settlement, billing, processing, clearing, transferring, reconciling or collection of amounts charged, debited or otherwise paid using a debit, credit or other payment card, check or account number, or by other payment means.

(B) The transfer of receivables, accounts or interests therein.

(C) The audit of debit, credit or other payment information.

Cross References

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31 Pa. Code § 146a.33. Other exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information. (a) Exceptions to opt out requirements. The requirements for initial notice to consumers in § 146a.11(a)(2) (relating to initial privacy notice to consumers required) the opt out in § § 146a.14 and 146a.21 (relating to form of opt out notice to consumers and opt out methods; and limitation on disclosure of nonpublic personal financial information to nonaffiliated third parties), and service providers and joint marketing in § 146a.31 (relating to exception to opt out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing) do not apply when a licensee discloses nonpublic personal financial information:

(1) With the consent or at the direction of the consumer, provided that the consumer has not revoked the consent or direction.

(2) To protect the confidentiality or security of a licensee’s records pertaining to the consumer, service, product or transaction.

(3) To protect against or prevent actual or potential fraud or unauthorized transactions.

(4) For required institutional risk control or for resolving consumer disputes or inquiries.

(5) To persons holding a legal or beneficial interest relating to the consumer.

(6) To persons acting in a fiduciary or representative capacity on behalf of the consumer.

(7) To provide information to insurance rate advisory organizations, guaranty funds or agencies, agencies that are rating a licensee, persons that are assessing the licensee’s compliance with industry standards, and the licensee’s attorneys, accountants and auditors.

(8) To the extent specifically permitted or required under other provisions of law and in accordance with the Federal Right to Financial Privacy Act of 1978 (12 U.S.C.A. § § 3401—3422), to law enforcement agencies (including the Federal Reserve Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Office of Thrift Supervision, National Credit Union Administration, the Securities and Exchange Commission, the Secretary of the Treasury, with respect to 31 U.S.C.A. Chapter 53, Subchapter II (Records and Reports on Monetary Instruments and Transactions) and 12 U.S.C.A. Chapter 21 (Financial Recordkeeping), a state insurance authority, and the Federal Trade Commission), self-regulatory organizations or for an investigation on a matter related to public safety.

(9) To a consumer reporting agency in accordance with the Federal Fair Credit Reporting Act (15 U.S.C.A. § § 1681—1681u), or from a consumer report reported by a consumer reporting agency.

(10) In connection with a proposed or actual sale, merger, transfer or exchange of all or a portion of a business or operating unit if the disclosure of nonpublic personal financial information concerns solely consumers of the business or unit.

(11) To comply with Federal, state or local laws, rules and other applicable legal requirements.

(12) To comply with a properly authorized civil, criminal or regulatory investigation, or subpoena or summons by Federal, state or local authorities.

(13) To respond to judicial process or government regulatory authorities having jurisdiction over a licensee for examination, compliance or other purposes as authorized by law.

(14) For purposes related to the replacement of a group benefit plan, a group health plan, a group welfare plan or a workers’ compensation plan.

(b) Example of revocation of consent. A consumer may revoke consent by subsequently exercising the right to opt out of future disclosures of nonpublic personal financial information as permitted under § 146a.14(f) (relating to form of opt out notice to consumers and opt out methods).
31 Pa. Code § 146a.33. Other exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information. (a) Exceptions to opt out requirements. The requirements for initial notice to consumers in § 146a.11(a)(2) (relating to initial privacy notice to consumers required) the opt out in § § 146a.14 and 146a.21 (relating to form of opt out notice to consumers and opt out methods; and limitation on disclosure of nonpublic personal financial information to nonaffiliated third parties), and service providers and joint marketing in § 146a.31 (relating to exception to opt out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing) do not apply when a licensee discloses nonpublic personal financial information:

(1) With the consent or at the direction of the consumer, provided that the consumer has not revoked the consent or direction.

(2) To protect the confidentiality or security of a licensee’s records pertaining to the consumer, service, product or transaction.

(3) To protect against or prevent actual or potential fraud or unauthorized transactions.

(4) For required institutional risk control or for resolving consumer disputes or inquiries.

(5) To persons holding a legal or beneficial interest relating to the consumer.

(6) To persons acting in a fiduciary or representative capacity on behalf of the consumer.

(7) To provide information to insurance rate advisory organizations, guaranty funds or agencies, agencies that are rating a licensee, persons that are assessing the licensee’s compliance with industry standards, and the licensee’s attorneys, accountants and auditors.

(8) To the extent specifically permitted or required under other provisions of law and in accordance with the Federal Right to Financial Privacy Act of 1978 (12 U.S.C.A. § § 3401—3422), to law enforcement agencies (including the Federal Reserve Board, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Office of Thrift Supervision, National Credit Union Administration, the Securities and Exchange Commission, the Secretary of the Treasury, with respect to 31 U.S.C.A. Chapter 53, Subchapter II (Records and Reports on Monetary Instruments and Transactions) and 12 U.S.C.A. Chapter 21 (Financial Recordkeeping), a state insurance authority, and the Federal Trade Commission), self-regulatory organizations or for an investigation on a matter related to public safety.

(9) To a consumer reporting agency in accordance with the Federal Fair Credit Reporting Act (15 U.S.C.A. § § 1681—1681u), or from a consumer report reported by a consumer reporting agency.

(10) In connection with a proposed or actual sale, merger, transfer or exchange of all or a portion of a business or operating unit if the disclosure of nonpublic personal financial information concerns solely consumers of the business or unit.

(11) To comply with Federal, state or local laws, rules and other applicable legal requirements.

(12) To comply with a properly authorized civil, criminal or regulatory investigation, or subpoena or summons by Federal, state or local authorities.

(13) To respond to judicial process or government regulatory authorities having jurisdiction over a licensee for examination, compliance or other purposes as authorized by law.

(14) For purposes related to the replacement of a group benefit plan, a group health plan, a group welfare plan or a workers’ compensation plan.

(b) Example of revocation of consent. A consumer may revoke consent by subsequently exercising the right to opt out of future disclosures of nonpublic personal financial information as permitted under § 146a.14(f) (relating to form of opt out notice to consumers and opt out methods).

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31 Pa. Code § 146a.42. Nondiscrimination. A licensee may not unfairly discriminate against any consumer or customer because that consumer or customer has opted out from the disclosure of nonpublic personal financial information under this chapter. 31 Pa. Code § 146a.42. Nondiscrimination. A licensee may not unfairly discriminate against any consumer or customer because that consumer or customer has opted out from the disclosure of nonpublic personal financial information under this chapter.

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31 Pa. Code § 146a.44. Effective date. (a) Effective date. This chapter is effective July 1, 2001.

(b) Notice requirements.

(1) Consumers who are the licensee’s customers on the effective date. By July 1, 2001, a licensee shall provide an initial notice, as required by § 146a.11 (relating to initial privacy notice to consumers required), to consumers who are the licensee’s customers on July 1, 2001.

(2) Example. A licensee provides an initial notice to consumers who are its customers on July 1, 2001, if, by that date, the 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 § 146a.31(a)(1)(ii) (relating to exception to opt out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing), even if the contract does not include a requirement that the nonaffiliated third party maintain the confidentiality of nonpublic personal financial information, as long as the licensee entered into the agreement on or before July 1, 2000.
31 Pa. Code § 146a.44. Effective date. (a) Effective date. This chapter is effective July 1, 2001.

(b) Notice requirements.

(1) Consumers who are the licensee’s customers on the effective date. By July 1, 2001, a licensee shall provide an initial notice, as required by § 146a.11 (relating to initial privacy notice to consumers required), to consumers who are the licensee’s customers on July 1, 2001.

(2) Example. A licensee provides an initial notice to consumers who are its customers on July 1, 2001, if, by that date, the 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 § 146a.31(a)(1)(ii) (relating to exception to opt out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing), even if the contract does not include a requirement that the nonaffiliated third party maintain the confidentiality of nonpublic personal financial information, as long as the licensee entered into the agreement on or before July 1, 2000.

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31 Pa. Code § 146b.1. Purpose. (a) Purpose. This chapter:

(1) Governs the treatment of all nonpublic personal health information about individuals by various licensees of the Department.

(2) Describes the conditions under which a licensee may disclose nonpublic personal health information about consumers to a third party.

(3) Requires licensees to obtain an authorization from consumers prior to disclosing nonpublic personal health information, unless otherwise permitted in this chapter.

(b) Compliance. A licensee domiciled in this Commonwealth that is in compliance with this chapter and Chapter 146a (relating to privacy of consumer financial information) in a state that has not enacted laws or regulations that meet the requirements of Title V of the act of November 12, 1999 (Pub. L. No. 106-102, 113 Stat. 1338) known as the Gramm-Leach-Bliley Act (Financial Services Modernization Act of 1999) (15 U.S.C.A. § § 6801—6827) may nonetheless be deemed to be in compliance with Title V of the Gramm-Leach-Bliley Act in the other state.

(c) Examples. The examples provided in this chapter are for illustrative purposes only and do not otherwise limit or restrict the scope of this chapter.
31 Pa. Code § 146b.1. Purpose. (a) Purpose. This chapter:

(1) Governs the treatment of all nonpublic personal health information about individuals by various licensees of the Department.

(2) Describes the conditions under which a licensee may disclose nonpublic personal health information about consumers to a third party.

(3) Requires licensees to obtain an authorization from consumers prior to disclosing nonpublic personal health information, unless otherwise permitted in this chapter.

(b) Compliance. A licensee domiciled in this Commonwealth that is in compliance with this chapter and Chapter 146a (relating to privacy of consumer financial information) in a state that has not enacted laws or regulations that meet the requirements of Title V of the act of November 12, 1999 (Pub. L. No. 106-102, 113 Stat. 1338) known as the Gramm-Leach-Bliley Act (Financial Services Modernization Act of 1999) (15 U.S.C.A. § § 6801—6827) may nonetheless be deemed to be in compliance with Title V of the Gramm-Leach-Bliley Act in the other state.

(c) Examples. The examples provided in this chapter are for illustrative purposes only and do not otherwise limit or restrict the scope of this chapter.

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31 Pa. Code § 146b.11. Authorization required for disclosure of nonpublic personal health information. (a) Authorization required. A licensee may not disclose nonpublic personal health information about a consumer unless an authorization is obtained from the consumer whose nonpublic personal health information is sought to be disclosed.

(b) Insurance function exception. Nothing in this section prohibits, restricts or requires an authorization for the disclosure of nonpublic personal health information by a licensee to the extent that the disclosure of nonpublic personal health information is necessary for the performance of one or more of the following insurance functions by or on behalf of the licensee:

(1) Claims administration, including coordination of benefits and subrogation.

(2) Claims adjustment, investigation, negotiation, settlement and management.

(3) Detection, prevention, investigation or reporting of actual or potential fraud, misrepresentation or criminal activity.

(4) Underwriting.

(5) Policy placement or issuance.

(6) Loss control.

(7) Ratemaking and guaranty fund functions.

(8) Reinsurance and excess loss insurance.

(9) Risk management.

(10) Case management.

(11) Disease management and wellness programs.

(12) Quality assurance.

(13) Quality improvement.

(14) Performance evaluation.

(15) Provider training, accreditation or certification by a recognized accrediting or certifying body, license and credential verification.

(16) Utilization review.

(17) Peer review activities.

(18) Actuarial, scientific, medical or public policy research.

(19) Grievance and complaint procedures.

(20) Internal administration of compliance, managerial and information systems.

(21) Policyholder service functions.

(22) Auditing.

(23) Reporting (examples include reporting to medical index or consumer reporting bureaus and legally required reporting of disease, injury, vital statistics, child or adult abuse, neglect or domestic violence).

(24) Database security.

(25) Administration of consumer disputes and inquiries.

(26) External accreditation standards.

(27) The replacement of a group benefit plan or workers compensation policy or program.

(28) Activities in connection with a sale, merger, transfer or exchange of all or part of a business or operating unit.

(29) An activity that permits disclosure without authorization under the Federal regulation.

(30) Disclosure that is required, or is one of the lawful or appropriate methods, to enforce the licensee’s rights or the rights of other persons engaged in carrying out a transaction or providing a product or service that a consumer requests or authorizes.

(31) An activity otherwise permitted by law, required under governmental regulatory or reporting authority, or to comply with legal process.

(32) Compliance with qualified medical child support Orders.

(33) Preventive service reminders that do not require disclosure of nonpublic personal health information that a consumer has not previously disclosed directly to the recipient of the information.

(c) Disclosure of nonpublic personal health information. Disclosure of nonpublic personal health information is necessary when the disclosure is required or when disclosure is usual, appropriate or acceptable for the purpose of performing an insurance function identified in subsection (b).

(d) Insurance functions performed by third parties on behalf of the licensee. A licensee may disclose nonpublic personal health information to a third party not licensed by the Department provided that the nonpublic personal health information is disclosed only for the purposes of carrying out one or more of the insurance functions identified in subsection (b). The Department may hold a licensee responsible for disclosures made by a third party that violate the requirements of this chapter.

(e) Additional insurance functions. Additional insurance functions may be added with the approval of the Commissioner to the extent they are necessary for appropriate performance of insurance functions and are fair and reasonable to the interest of consumers.
31 Pa. Code § 146b.11. Authorization required for disclosure of nonpublic personal health information. (a) Authorization required. A licensee may not disclose nonpublic personal health information about a consumer unless an authorization is obtained from the consumer whose nonpublic personal health information is sought to be disclosed.

(b) Insurance function exception. Nothing in this section prohibits, restricts or requires an authorization for the disclosure of nonpublic personal health information by a licensee to the extent that the disclosure of nonpublic personal health information is necessary for the performance of one or more of the following insurance functions by or on behalf of the licensee:

(1) Claims administration, including coordination of benefits and subrogation.

(2) Claims adjustment, investigation, negotiation, settlement and management.

(3) Detection, prevention, investigation or reporting of actual or potential fraud, misrepresentation or criminal activity.

(4) Underwriting.

(5) Policy placement or issuance.

(6) Loss control.

(7) Ratemaking and guaranty fund functions.

(8) Reinsurance and excess loss insurance.

(9) Risk management.

(10) Case management.

(11) Disease management and wellness programs.

(12) Quality assurance.

(13) Quality improvement.

(14) Performance evaluation.

(15) Provider training, accreditation or certification by a recognized accrediting or certifying body, license and credential verification.

(16) Utilization review.

(17) Peer review activities.

(18) Actuarial, scientific, medical or public policy research.

(19) Grievance and complaint procedures.

(20) Internal administration of compliance, managerial and information systems.

(21) Policyholder service functions.

(22) Auditing.

(23) Reporting (examples include reporting to medical index or consumer reporting bureaus and legally required reporting of disease, injury, vital statistics, child or adult abuse, neglect or domestic violence).

(24) Database security.

(25) Administration of consumer disputes and inquiries.

(26) External accreditation standards.

(27) The replacement of a group benefit plan or workers compensation policy or program.

(28) Activities in connection with a sale, merger, transfer or exchange of all or part of a business or operating unit.

(29) An activity that permits disclosure without authorization under the Federal regulation.

(30) Disclosure that is required, or is one of the lawful or appropriate methods, to enforce the licensee’s rights or the rights of other persons engaged in carrying out a transaction or providing a product or service that a consumer requests or authorizes.

(31) An activity otherwise permitted by law, required under governmental regulatory or reporting authority, or to comply with legal process.

(32) Compliance with qualified medical child support Orders.

(33) Preventive service reminders that do not require disclosure of nonpublic personal health information that a consumer has not previously disclosed directly to the recipient of the information.

(c) Disclosure of nonpublic personal health information. Disclosure of nonpublic personal health information is necessary when the disclosure is required or when disclosure is usual, appropriate or acceptable for the purpose of performing an insurance function identified in subsection (b).

(d) Insurance functions performed by third parties on behalf of the licensee. A licensee may disclose nonpublic personal health information to a third party not licensed by the Department provided that the nonpublic personal health information is disclosed only for the purposes of carrying out one or more of the insurance functions identified in subsection (b). The Department may hold a licensee responsible for disclosures made by a third party that violate the requirements of this chapter.

(e) Additional insurance functions. Additional insurance functions may be added with the approval of the Commissioner to the extent they are necessary for appropriate performance of insurance functions and are fair and reasonable to the interest of consumers.

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31 Pa. Code § 146b.12. Authorizations. (a) Valid authorization contents. A valid authorization to disclose nonpublic personal health information under § 146b.11(a) (relating to authorization required for disclosure of the nonpublic personal health information) shall be in written or electronic form and shall contain all of the following:

(1) The identity of the consumer who is the subject of the nonpublic personal health information.

(2) A general description of the types of nonpublic personal health information to be disclosed.

(3) General descriptions of the parties to whom the licensee discloses nonpublic personal health information, the purpose of the disclosure and how the information will be used.

(4) The signature of the consumer who is the subject of the nonpublic personal health information or the individual who is legally empowered to grant authority and the date signed.

(5) Notice of the length of time for which the authorization is valid and that the consumer may revoke the authorization at any time and the procedure for making a revocation.

(b) Duration of authorization. An authorization for the purposes of § 146b.11(a) shall specify a length of time for which the authorization shall remain valid, which may not be for more than 24 months.

(c) Revocation of authorization. A consumer who is the subject of nonpublic personal health information may revoke an authorization provided under this subchapter at any time, subject to the rights of an individual or licensee who acted in reliance on the authorization prior to notice of the revocation.

(d) Record of authorization. A licensee shall retain the authorization and a revocation of the authorization, or copies thereof, for 6 years in the record of the individual who is the subject of nonpublic personal health information.
31 Pa. Code § 146b.12. Authorizations. (a) Valid authorization contents. A valid authorization to disclose nonpublic personal health information under § 146b.11(a) (relating to authorization required for disclosure of the nonpublic personal health information) shall be in written or electronic form and shall contain all of the following:

(1) The identity of the consumer who is the subject of the nonpublic personal health information.

(2) A general description of the types of nonpublic personal health information to be disclosed.

(3) General descriptions of the parties to whom the licensee discloses nonpublic personal health information, the purpose of the disclosure and how the information will be used.

(4) The signature of the consumer who is the subject of the nonpublic personal health information or the individual who is legally empowered to grant authority and the date signed.

(5) Notice of the length of time for which the authorization is valid and that the consumer may revoke the authorization at any time and the procedure for making a revocation.

(b) Duration of authorization. An authorization for the purposes of § 146b.11(a) shall specify a length of time for which the authorization shall remain valid, which may not be for more than 24 months.

(c) Revocation of authorization. A consumer who is the subject of nonpublic personal health information may revoke an authorization provided under this subchapter at any time, subject to the rights of an individual or licensee who acted in reliance on the authorization prior to notice of the revocation.

(d) Record of authorization. A licensee shall retain the authorization and a revocation of the authorization, or copies thereof, for 6 years in the record of the individual who is the subject of nonpublic personal health information.

.

31 Pa. Code § 146b.13. Authorization request delivery. A request for authorization and an authorization form may be delivered to a consumer as part of a privacy notice delivered under Chapter 146a (relating to privacy of consumer financial information), provided that the request and the authorization form are clear and conspicuous. An authorization form is not required to be delivered to the consumer or included in other notices unless the licensee intends to disclose nonpublic personal health information under § 146b.11(a) (relating to authorization required for disclosure of nonpublic personal health information). 31 Pa. Code § 146b.13. Authorization request delivery. A request for authorization and an authorization form may be delivered to a consumer as part of a privacy notice delivered under Chapter 146a (relating to privacy of consumer financial information), provided that the request and the authorization form are clear and conspicuous. An authorization form is not required to be delivered to the consumer or included in other notices unless the licensee intends to disclose nonpublic personal health information under § 146b.11(a) (relating to authorization required for disclosure of nonpublic personal health information).

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52 Pa. Code § 29.306. Consumer information. To provide passengers with the necessary information to file a complaint, scheduled route carriers shall post a Commission-issued complaint decal in a conspicuous location inside the vehicle which lists the telephone number and website to be used to lodge a complaint or provide the following notice on the receipt for service:

For complaints and information, contact the Pennsylvania Public Utility Commission at (800) 782-1110 or at www.state.pa.us. Include the company name and A-# for all complaints.
52 Pa. Code § 29.306. Consumer information. To provide passengers with the necessary information to file a complaint, scheduled route carriers shall post a Commission-issued complaint decal in a conspicuous location inside the vehicle which lists the telephone number and website to be used to lodge a complaint or provide the following notice on the receipt for service:

For complaints and information, contact the Pennsylvania Public Utility Commission at (800) 782-1110 or at www.state.pa.us. Include the company name and A-# for all complaints.

.

52 Pa. Code § 29.318. Consumer information. To provide passengers with the necessary information to file a complaint, taxicabs must display a Commission-issued complaint decal which lists the telephone number and web site to be used to lodge a complaint. The decal shall be posted on the inside of the right rear window of the vehicle, along the bottom edge.52 Pa. Code § 29.318. Consumer information. To provide passengers with the necessary information to file a complaint, taxicabs must display a Commission-issued complaint decal which lists the telephone number and web site to be used to lodge a complaint. The decal shall be posted on the inside of the right rear window of the vehicle, along the bottom edge.

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52 Pa. Code § 29.336. Consumer information. To provide passengers with the necessary information to file a complaint, limousine carriers shall post, a Commission-issued complaint decal in a conspicuous location inside the vehicle which lists the telephone number and website to be used to lodge a complaint, or provide the following notice on the receipt for service or service contract:

For complaints and information, contact the Pennsylvania Public Utility Commission at (800) 782-1110 or at www.state.pa.us. Include the company name and A-# for all complaints.
52 Pa. Code § 29.336. Consumer information. To provide passengers with the necessary information to file a complaint, limousine carriers shall post, a Commission-issued complaint decal in a conspicuous location inside the vehicle which lists the telephone number and website to be used to lodge a complaint, or provide the following notice on the receipt for service or service contract:

For complaints and information, contact the Pennsylvania Public Utility Commission at (800) 782-1110 or at www.state.pa.us. Include the company name and A-# for all complaints.

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§ 29.344. Consumer information. To provide passengers with the necessary information to file a complaint, airport transfer carriers shall post a Commission-issued complaint decal in a conspicuous location inside the vehicle which lists the telephone number and website to be used to lodge a complaint or provide the following notice on the receipt for service:

For complaints and information, contact the Pennsylvania Public Utility Commission at (800) 782-1110 or at www.state.pa.us. Include the company name and A-# for all complaints.
§ 29.344. Consumer information. To provide passengers with the necessary information to file a complaint, airport transfer carriers shall post a Commission-issued complaint decal in a conspicuous location inside the vehicle which lists the telephone number and website to be used to lodge a complaint or provide the following notice on the receipt for service:

For complaints and information, contact the Pennsylvania Public Utility Commission at (800) 782-1110 or at www.state.pa.us. Include the company name and A-# for all complaints.

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§ 29.356. Consumer information To provide passengers with the necessary information to file a complaint, paratransit and experimental carriers shall post a Commission-issued complaint decal in a conspicuous location inside the vehicle which lists the telephone number and website to be used to lodge a complaint or provide the following notice on the receipt for service:

For complaints and information, contact the Pennsylvania Public Utility Commission at (800) 782-1110 or at www.state.pa.us. Include the company name and A-# for all complaints.

§ 29.356. Consumer information To provide passengers with the necessary information to file a complaint, paratransit and experimental carriers shall post a Commission-issued complaint decal in a conspicuous location inside the vehicle which lists the telephone number and website to be used to lodge a complaint or provide the following notice on the receipt for service:

For complaints and information, contact the Pennsylvania Public Utility Commission at (800) 782-1110 or at www.state.pa.us. Include the company name and A-# for all complaints.

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52 Pa. Code § 53.45. Notice of new tariffs and tariff changes. (a) Thirty days prior to the filing of a new tariff, tariff supplement or tariff revision that constitutes a general rate increase within the meaning of 66 Pa.C.S. § 1308(d) (relating to voluntary changes in rates) and that is anticipated to exceed $1 million, a public utility shall file with the Secretary a written notice informing the Commission of the utility’s anticipated filing of a general rate increase and, to the extent available, an estimate of the overall amount of the anticipated general rate increase. This notice shall be deemed proprietary and confidential. Copies of this notice shall be served on the Office of Consumer Advocate and the Office of the Small Business Advocate, so long as these offices observe the proprietary nature of the notice.

(b) Upon the filing of a new tariff, tariff supplement or tariff revision that constitutes a general rate increase within the meaning of 66 Pa.C.S. § 1308(d), notice shall be given to the public by each of the following methods:

(1) By posting in offices. A public utility shall post a notice at least 15 by 20 inches in size in a conspicuous place in each company office at which payments are accepted.

(i) The notice shall read as follows, with the blanks appropriately completed: NOTICE OF PROPOSED RATE CHANGES


To Our Customers:

(company) is filing a request with the Pennsylvania Public Utility Commission (PUC) to increase your (type of service) rates as of (date). This notice describes the company’s rate request, the PUC’s role, and what actions you can take.



(company) has requested an overall rate increase of $
per year. If the company’s entire request is approved, the total bill for a residential customer using (state typical usage level) would increase from $ to $ per month or by %.



The total bill for a commercial customer using (state typical usage level) would increase from $
to $ per month or by %.



Rates for an industrial customer using (state typical usage level) would increase from $
to $ per month or by %.

To find out your customer class or how the requested increase may affect your (type of service) bill, contact (company) at (toll free phone number). The rates requested by the company may be found in (tariff number). You may examine the material filed with the PUC which explains the requested increase and the reasons for it. A copy of this material is kept at (company’s) office. (For companies with annual revenues of more than $10 Million, ADD: ‘‘Upon request, the company will send you the Statement of Reasons for (tariff number), explaining why the rate increase has been requested.’’)

The state agency which approves rates for public utilities is the PUC. The PUC will examine the requested rate increase and can prevent existing rates from changing until it investigates and/or holds hearings on the request. The company must prove that the requested rates are reasonable. After examining the evidence, the PUC may grant all, some, or none of the request or may reduce existing rates.

The PUC may change the amount of the rate increase or decrease requested by the utility for each customer class. As a result, the rate charged to you may be different than the rate requested by the company and shown above.

There are three ways to challenge a company’s request to change its rates:

1. You can file a formal complaint. If you want a hearing before a judge, you must file a formal complaint. By filing a formal complaint, you assure yourself the opportunity to take part in hearings about the rate increase request. All complaints should be filed with the PUC before (proposed effective date of the rate increase). If no formal complaints are filed, the Commission may grant all, some or none of the request without holding a hearing before a judge.

2. You can send us a letter telling why you object to the requested rate increase. Sometimes there is information in these letters that makes us aware of problems with the company’s service or management. This information can be helpful when we investigate the rate request.

Send your letter or request for a formal complaint form to the Pennsylvania Public Utility Commission, Post Office Box 3265, Harrisburg, PA 17105-3265.

3. You can be a witness at a public input hearing. Public input hearings are held if the Commission opens an investigation of the company’s rate increase request and if there is a large number of customers interested in the case. At these hearings you have the opportunity to present your views in person to the PUC judge hearing the case and the company representatives. All testimony given ‘‘under oath’’ becomes part of the official rate case record. These hearings are held in the service area of the company.

(When PUC Voice Processing System becomes available, ADD:)

For more information, call the PUC at 1-800-XXX-XXXX. You may leave your name and address so you can be notified of any public input hearings that may be scheduled in this case.


Company

(ii) The notice shall be posted for at least 60 days before the proposed general rate increase becomes effective, and is in addition to the notices prescribed in § § 53.42 and 53.43 (relating to notice of the public file; and maintenance and availability of the public file). For the purposes of posting only, the public utility may shorten the specified customer notice language to fit legibly on the minimum required size of the posters, provided that the shortened customer notice language contains, at a minimum, information describing the amount of the proposed annual increase, the proposed effective date, the percentage of the increase to a typical residential, commercial and industrial customer’s total bill and a statement that customers may contact the company at a toll free telephone number to get additional information on the proposed increase or to find out what actions they may take.

(2) By written or printed notice. A public utility shall notify its customers by a written or printed notice. The written or printed notice shall be mailed at least 61 days or hand delivered at least 60 days prior to the proposed effective date of the tariff, tariff supplement or tariff revision. The text of the written or printed notice shall be the same as the notice language specified in paragraph (1).

(3) By news release. On the date the rate increase is filed, a public utility shall distribute news releases containing a description of the proposed rate changes to the major newspapers, radio and television stations serving the public utility’s area. The news release shall contain, at a minimum, information describing the amount of the proposed increase, the proposed effective date, the percentage of the increase to the company’s annual revenues, the dollar increase to a typical residential, commercial and industrial customer’s total bill and a statement that customers may contact the company at a toll free telephone number to get further information on the proposed increase or to find out what actions they may take.

(4) Alternative method. In lieu of the method described in paragraph (2), a public utility on a 1-month billing cycle filing a proposed general rate increase may notify its customers by means of a bill insert.

(i) The text of the bill insert shall be printed on distinctive color paper and shall contain the exact notice language specified in paragraph (1).

(ii) The bill insert shall be included with customer bills beginning no later than the day the tariff, tariff supplement or tariff revision containing the rate increase is filed.

(iii) There may be no sales, marketing or promotional type literature included in a customer bill that contains the customer notice of proposed rate increase.

(iv) The billing envelope’s front side, in conspicuous type, shall call attention to the fact that rate increase information is contained in that month’s mailing.

(v) The bill insert shall continue each billing day until the 1-month billing cycle is completed and all customers have been notified.

(vi) Due to the longer time frame of this method of notification, a public utility that elects to use bill inserts shall agree to extend from 60 to 90 days the minimum period within which the filing of a complaint places the burden of proof upon the company with respect to proposed rates.

(vii) On the date the rate increase is filed, notice by bill insert shall be supplemented by paid newspaper advertisements published in the major newspapers serving the public utility’s service area containing a description of the proposed rate changes.

(viii) A public utility that elects to use this alternative method of customer notification shall advise the Commission of this election in writing at the time the rate increase is filed.

(c) A utility shall provide customer notice consistent with the language in subsection (b)(1)(i) to persons who move into that utility’s service territory and become customers during the pendency of a rate increase request. Customer notice shall be provided to new customers at the time they complete an application for service.

(d) A utility shall provide customer notice consistent with the language provided in subsection (b)(1)(i) to customers to be acquired from another entity as a result of a transfer application filed under 66 Pa.C.S. § 1102(3) (relating to enumeration of acts requiring certificate), if new rates resulting from the utility’s rate increase request are to apply to the transferred customers. Customer notice shall be provided to transfer customers at the time the transfer application is filed with the Commission.

(e) The customer notice requirements in subsection (b) are not applicable to interexchange carriers.

(f) Upon Commission approval of the final filing of an energy cost rate adjustment (ECR) under 66 Pa.C.S. § 1307 (relating to sliding scale of rates; adjustments), notice shall be given to the public by both of the following methods:

(1) By bill insert. A public utility that filed an ECR adjustment in final form shall notify its customers by a bill insert after the adjustment is approved by the Commission. The bill insert shall be sent as soon after the Commission action as practicable. The notice shall contain, at a minimum, information describing the adjustment and time frame for reconciliation hearings, the effect of the approved increase or decrease on a typical residential, commercial and industrial customer’s bill and a statement that customers may contact the company at a given telephone number to get further information on the adjustment or to find out what actions they may take.

(2) By news release. On the date the ECR adjustment is officially approved by the Commission, a public utility shall distribute news releases containing a description of the ECR adjustment to the major newspapers, radio and television stations serving the public utility’s area. The news release shall contain, at a minimum, the information specified in paragraph (1).

(g) For other proposed changes in rates, rules and regulations, including nongeneral rate increases, proposed changes in regulations—without rate changes—and proposed rate changes under 66 Pa.C.S. § 1307(f), public notice of the proposed changes shall be given in the manner directed by the Commission.

(h) Upon completion of the notice requirements of this section, a public utility shall file an affidavit with the Commission confirming that the notice requirements have been met.
52 Pa. Code § 53.45. Notice of new tariffs and tariff changes. (a) Thirty days prior to the filing of a new tariff, tariff supplement or tariff revision that constitutes a general rate increase within the meaning of 66 Pa.C.S. § 1308(d) (relating to voluntary changes in rates) and that is anticipated to exceed $1 million, a public utility shall file with the Secretary a written notice informing the Commission of the utility’s anticipated filing of a general rate increase and, to the extent available, an estimate of the overall amount of the anticipated general rate increase. This notice shall be deemed proprietary and confidential. Copies of this notice shall be served on the Office of Consumer Advocate and the Office of the Small Business Advocate, so long as these offices observe the proprietary nature of the notice.

(b) Upon the filing of a new tariff, tariff supplement or tariff revision that constitutes a general rate increase within the meaning of 66 Pa.C.S. § 1308(d), notice shall be given to the public by each of the following methods:

(1) By posting in offices. A public utility shall post a notice at least 15 by 20 inches in size in a conspicuous place in each company office at which payments are accepted.

(i) The notice shall read as follows, with the blanks appropriately completed: NOTICE OF PROPOSED RATE CHANGES


To Our Customers:

(company) is filing a request with the Pennsylvania Public Utility Commission (PUC) to increase your (type of service) rates as of (date). This notice describes the company’s rate request, the PUC’s role, and what actions you can take.



(company) has requested an overall rate increase of $
per year. If the company’s entire request is approved, the total bill for a residential customer using (state typical usage level) would increase from $ to $ per month or by %.



The total bill for a commercial customer using (state typical usage level) would increase from $
to $ per month or by %.



Rates for an industrial customer using (state typical usage level) would increase from $
to $ per month or by %.

To find out your customer class or how the requested increase may affect your (type of service) bill, contact (company) at (toll free phone number). The rates requested by the company may be found in (tariff number). You may examine the material filed with the PUC which explains the requested increase and the reasons for it. A copy of this material is kept at (company’s) office. (For companies with annual revenues of more than $10 Million, ADD: ‘‘Upon request, the company will send you the Statement of Reasons for (tariff number), explaining why the rate increase has been requested.’’)

The state agency which approves rates for public utilities is the PUC. The PUC will examine the requested rate increase and can prevent existing rates from changing until it investigates and/or holds hearings on the request. The company must prove that the requested rates are reasonable. After examining the evidence, the PUC may grant all, some, or none of the request or may reduce existing rates.

The PUC may change the amount of the rate increase or decrease requested by the utility for each customer class. As a result, the rate charged to you may be different than the rate requested by the company and shown above.

There are three ways to challenge a company’s request to change its rates:

1. You can file a formal complaint. If you want a hearing before a judge, you must file a formal complaint. By filing a formal complaint, you assure yourself the opportunity to take part in hearings about the rate increase request. All complaints should be filed with the PUC before (proposed effective date of the rate increase). If no formal complaints are filed, the Commission may grant all, some or none of the request without holding a hearing before a judge.

2. You can send us a letter telling why you object to the requested rate increase. Sometimes there is information in these letters that makes us aware of problems with the company’s service or management. This information can be helpful when we investigate the rate request.

Send your letter or request for a formal complaint form to the Pennsylvania Public Utility Commission, Post Office Box 3265, Harrisburg, PA 17105-3265.

3. You can be a witness at a public input hearing. Public input hearings are held if the Commission opens an investigation of the company’s rate increase request and if there is a large number of customers interested in the case. At these hearings you have the opportunity to present your views in person to the PUC judge hearing the case and the company representatives. All testimony given ‘‘under oath’’ becomes part of the official rate case record. These hearings are held in the service area of the company.

(When PUC Voice Processing System becomes available, ADD:)

For more information, call the PUC at 1-800-XXX-XXXX. You may leave your name and address so you can be notified of any public input hearings that may be scheduled in this case.


Company

(ii) The notice shall be posted for at least 60 days before the proposed general rate increase becomes effective, and is in addition to the notices prescribed in § § 53.42 and 53.43 (relating to notice of the public file; and maintenance and availability of the public file). For the purposes of posting only, the public utility may shorten the specified customer notice language to fit legibly on the minimum required size of the posters, provided that the shortened customer notice language contains, at a minimum, information describing the amount of the proposed annual increase, the proposed effective date, the percentage of the increase to a typical residential, commercial and industrial customer’s total bill and a statement that customers may contact the company at a toll free telephone number to get additional information on the proposed increase or to find out what actions they may take.

(2) By written or printed notice. A public utility shall notify its customers by a written or printed notice. The written or printed notice shall be mailed at least 61 days or hand delivered at least 60 days prior to the proposed effective date of the tariff, tariff supplement or tariff revision. The text of the written or printed notice shall be the same as the notice language specified in paragraph (1).

(3) By news release. On the date the rate increase is filed, a public utility shall distribute news releases containing a description of the proposed rate changes to the major newspapers, radio and television stations serving the public utility’s area. The news release shall contain, at a minimum, information describing the amount of the proposed increase, the proposed effective date, the percentage of the increase to the company’s annual revenues, the dollar increase to a typical residential, commercial and industrial customer’s total bill and a statement that customers may contact the company at a toll free telephone number to get further information on the proposed increase or to find out what actions they may take.

(4) Alternative method. In lieu of the method described in paragraph (2), a public utility on a 1-month billing cycle filing a proposed general rate increase may notify its customers by means of a bill insert.

(i) The text of the bill insert shall be printed on distinctive color paper and shall contain the exact notice language specified in paragraph (1).

(ii) The bill insert shall be included with customer bills beginning no later than the day the tariff, tariff supplement or tariff revision containing the rate increase is filed.

(iii) There may be no sales, marketing or promotional type literature included in a customer bill that contains the customer notice of proposed rate increase.

(iv) The billing envelope’s front side, in conspicuous type, shall call attention to the fact that rate increase information is contained in that month’s mailing.

(v) The bill insert shall continue each billing day until the 1-month billing cycle is completed and all customers have been notified.

(vi) Due to the longer time frame of this method of notification, a public utility that elects to use bill inserts shall agree to extend from 60 to 90 days the minimum period within which the filing of a complaint places the burden of proof upon the company with respect to proposed rates.

(vii) On the date the rate increase is filed, notice by bill insert shall be supplemented by paid newspaper advertisements published in the major newspapers serving the public utility’s service area containing a description of the proposed rate changes.

(viii) A public utility that elects to use this alternative method of customer notification shall advise the Commission of this election in writing at the time the rate increase is filed.

(c) A utility shall provide customer notice consistent with the language in subsection (b)(1)(i) to persons who move into that utility’s service territory and become customers during the pendency of a rate increase request. Customer notice shall be provided to new customers at the time they complete an application for service.

(d) A utility shall provide customer notice consistent with the language provided in subsection (b)(1)(i) to customers to be acquired from another entity as a result of a transfer application filed under 66 Pa.C.S. § 1102(3) (relating to enumeration of acts requiring certificate), if new rates resulting from the utility’s rate increase request are to apply to the transferred customers. Customer notice shall be provided to transfer customers at the time the transfer application is filed with the Commission.

(e) The customer notice requirements in subsection (b) are not applicable to interexchange carriers.

(f) Upon Commission approval of the final filing of an energy cost rate adjustment (ECR) under 66 Pa.C.S. § 1307 (relating to sliding scale of rates; adjustments), notice shall be given to the public by both of the following methods:

(1) By bill insert. A public utility that filed an ECR adjustment in final form shall notify its customers by a bill insert after the adjustment is approved by the Commission. The bill insert shall be sent as soon after the Commission action as practicable. The notice shall contain, at a minimum, information describing the adjustment and time frame for reconciliation hearings, the effect of the approved increase or decrease on a typical residential, commercial and industrial customer’s bill and a statement that customers may contact the company at a given telephone number to get further information on the adjustment or to find out what actions they may take.

(2) By news release. On the date the ECR adjustment is officially approved by the Commission, a public utility shall distribute news releases containing a description of the ECR adjustment to the major newspapers, radio and television stations serving the public utility’s area. The news release shall contain, at a minimum, the information specified in paragraph (1).

(g) For other proposed changes in rates, rules and regulations, including nongeneral rate increases, proposed changes in regulations—without rate changes—and proposed rate changes under 66 Pa.C.S. § 1307(f), public notice of the proposed changes shall be given in the manner directed by the Commission.

(h) Upon completion of the notice requirements of this section, a public utility shall file an affidavit with the Commission confirming that the notice requirements have been met.