What must a licensee do if it wishes to reserve the right to disclose nonpublic personal financial information?

A licensee must clearly state its intention to reserve the right to disclose nonpublic personal financial information in its privacy notice because this document serves as a formal communication to consumers about the handling of their personal data. The privacy notice outlines the licensee's policies and practices regarding the collection, use, and potential sharing of personal information. By including this statement, the licensee is ensuring transparency and informing consumers about their rights and options regarding their personal information.

This clear communication is essential for building trust with consumers and complying with regulations that aim to protect their privacy. It allows consumers to understand the circumstances under which their information may be shared and helps them make informed decisions about their engagement with the licensee. Properly informing consumers about these practices is a critical requirement for licensees operating in the financial and insurance sectors.