Under what condition can a licensee be exempt from notice and opt-out requirements?

The correct answer is based on the notion that when a licensee is affiliated with a principal licensee that adheres to the requisite notice and opt-out stipulations, the licensee may be exempt from having to provide separate notices. This affiliation underscores a shared responsibility in compliance, thus streamlining the regulatory framework for the licensee under the umbrella of the principal's established practices.

Affiliated licensees benefit from aligning with the principal licensee’s compliance standards, allowing them to operate more efficiently while still maintaining the essential protections built into the regulations. This ensures that the notice provisions are met through the principal's efforts, effectively covering the affiliated licensee without necessitating duplicate requirements.

Understanding this is critical because it emphasizes how regulatory compliance can be managed collectively within a framework of association, rather than requiring each individual licensee to independently navigate the complexities of notice and opt-out obligations.