What must a licensee do if an existing customer acquires a new insurance product or service?

If an existing customer acquires a new insurance product or service, the correct action is that no new privacy notice is needed if the prior privacy notice remains accurate. This is based on the principle that privacy notices convey how customer information will be used and shared. Once a customer has received a compliant privacy notice that accurately reflects the organization's practices, any subsequent transactions do not necessitate a new notice as long as the practices remain unchanged.

This approach helps streamline processes for both the licensee and the customer. Requiring a new privacy notice every time a customer acquires a new product could lead to unnecessary delays and administrative burdens.

In contrast, other responses suggest actions that could either complicate the transaction process or are not requirements under privacy regulations, such as always issuing a new notice or needing customer approval for every new service. These scenarios would not align with the intent of maintaining efficient regulatory compliance while ensuring customers are kept informed about their privacy rights in a structured manner.