When must a producer provide disclosure about information practices to an applicant?

A producer must provide disclosure about information practices to an applicant prior to or at the time of signing the application because this requirement is in place to ensure transparency and protect the applicant's rights. This disclosure includes informing the applicant about how their information will be collected, used, and shared, which aligns with privacy laws and regulations governing the insurance industry.

By providing this information beforehand, the applicant can make an informed decision about whether or not they wish to proceed with the application. This practice also establishes trust between the producer and the applicant, as it demonstrates a commitment to ethical standards and the applicant’s privacy rights.

This requirement is not fulfilled effectively if the disclosure is made only after the application is approved or at the time of policy delivery, as the applicant would have already committed to the application without full awareness of how their information would be handled. Additionally, limiting disclosure to only when it is requested by the applicant fails to proactively inform the applicant about important privacy considerations.