What are the conditions under which a licensee does not need to provide an annual privacy notice to a current customer?

The correct answer highlights a specific circumstance where a licensee is exempt from delivering an annual privacy notice to a current customer. According to privacy regulations, if disclosures about personal information practices are made in accordance with particular regulatory sections and there have been no policy changes, the independent adjuster is not required to send out an annual privacy notice. This provision aims to reduce unnecessary paperwork for customers while ensuring that they are informed about privacy practices when there are relevant changes.

The focus on specific regulatory sections indicates that the compliance framework already has established guidelines for transparency in communication, thereby eliminating the need for redundant annual notifications in stable situations where customer data handling practices have not changed. This means that as long as the information practices remain constant and are already disclosed appropriately under the specified sections, the licensee can forego additional notifications, ensuring clarity and efficiency in communication.