What is the purpose of the annual privacy notice?

The purpose of the annual privacy notice is to inform customers about the licensee's privacy policies and practices. This notice is critical as it provides transparency regarding how a company collects, uses, and protects personal information. It gives customers insight into their rights concerning their personal data and how they can expect that data to be handled, thus fostering a sense of trust and security in their relationship with the licensee.

This transparency is especially important in the financial and insurance industries, where sensitive personal information is often involved. Customers need to know whether their information is shared with third parties and how it is safeguarded. By receiving this notice annually, customers are kept up-to-date with any changes and reassured about their privacy rights.

The other options do not align with the purpose of the annual privacy notice. Changes in business hours, information about claims processing, or promotional offers do not pertain to the privacy practices that this notice is designed to communicate.