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R590.
Insurance, Administration.
(Effective 2-12-02)
R590-206.
Privacy of Consumer Financial and Health Information Rule.
R590-206-1.
Authority.
This rule is promulgated pursuant to Subsections 31A-2-202(1),
31A-2-201(2) and 31A-2-201(3)(a) in which the commissioner is empowered to
administer and enforce Title 31A, to perform duties imposed by Title 31A
and to make administrative rules to implement the provisions of Title 31A.
Furthermore, Title V, Section 505 (15 United States Code (U.S.C.)
6805)) empowers the Utah Insurance Commissioner to enforce Subtitle A of
Title V of the Gramm-Leach-Bliley Act of 1999(15 U.S.C. 6801 through
6820). Title V, Section 505
(15 U.S.C. 6805(b)(2)) authorizes the commissioner to issue rules to
implement the requirements of Title V, Section 501(b)of the federal act.
The commissioner is also authorized under Subsection 31A-23-317(3)
to adopt rules implementing the requirements of Title V, Section 501(b) of
the federal act.
R590-206-2.
Purpose and Scope.
(1) Purpose. This rule
governs the treatment of nonpublic personal health information and
nonpublic personal financial information about individuals by all
licensees of the Utah Insurance Department. This rule:
(a)
Requires a licensee to provide notice to individuals about its
privacy policies and practices;
(b)
Describes the conditions under which a licensee may disclose
nonpublic personal health information and nonpublic personal financial
information about individuals to affiliates and nonaffiliated third
parties; and
(c)
Provides methods for individuals to prevent a licensee from
disclosing that information.
(2)
Scope. This rule applies to:
(a)
Nonpublic personal financial information about individuals who
obtain or are claimants or beneficiaries of products or services primarily
for personal, family or household purposes from licensees.
This rule does not apply to information about companies or about
individuals who obtain products or services for business, commercial or
agricultural purposes; and
(b)
All nonpublic personal health information.
(3)
Compliance. A licensee
domiciled in this state that is in compliance with this rule in a state
that has not enacted laws or rules that meet the requirements of Title V
of the Gramm-Leach-Bliley Act (PL 102-106) may nonetheless be deemed to be
in compliance with Title V of the Gramm-Leach-Bliley Act in such other
state.
(4) This
rule does not apply to a financial institution, securities broker or
dealer, or a credit union that engages in activities or functions that do
not require a license from the Utah insurance commissioner.
R590-206-3.
Rule of Construction.
The examples in this rule and the sample clauses in Appendix A are
not exclusive. Appendix A - Sample Clauses, of the Model Rule entitled,
"Privacy of Consumer Financial and Health Information
Regulation," adopted September 26, 2000, by the National Association
of Insurance Commissioners, is incorporated by reference and available for
inspection at the Department of Insurance and the Department of
Administrative Rules. Compliance
with an example or use of a sample clause, to the extent applicable,
constitutes compliance with this rule.
R590-206-4.
Definitions.
As used in this rule, unless the context requires otherwise:
(1)
"Affiliate" means any company that controls, is
controlled by or is under common control with another company.
(2)(a)
"Clear and conspicuous" means that a notice is reasonably
understandable and designed to call attention to the nature and
significance of the information in the notice.
(b)
Examples.
(i)
Reasonably understandable. A licensee makes its notice reasonably
understandable if it:
(A)
Presents the information in the notice in clear, concise sentences,
paragraphs, and sections;
(B)
Uses short explanatory sentences or bullet lists whenever possible;
(C)
Uses definite, concrete, everyday words and active voice whenever
possible;
(D)
Avoids multiple negatives;
(E)
Avoids legal and highly technical business terminology whenever
possible; and
(F)
Avoids explanations that are imprecise and readily subject to
different interpretations.
(ii)
Designed to call attention. A licensee designs its notice to call
attention to the nature and significance of the information in it if the
licensee:
(A)
Uses a plain-language heading to call attention to the notice;
(B)
Uses a typeface and type size that are easy to read;
(C)
Provides wide margins and ample line spacing;
(D)
Uses boldface or italics for key words; and
(E)
In a form that combines the licensee's notice with other
information, uses distinctive type size, style, and graphic devices, such
as shading or sidebars.
(iii)
Notices on web sites. If a licensee provides a notice on a web
page, the licensee designs its notice to call attention to the nature and
significance of the information in it if the licensee uses text or visual
cues to encourage scrolling down the page if necessary to view the entire
notice and ensures that other elements on the web site (such as text,
graphics, hyperlinks or sound) do not distract attention from the notice,
and the licensee either:
(A)
Places the notice on a screen that consumers frequently access,
such as a page on which transactions are conducted; or
(B)
Places a link on a screen that consumers frequently access, such as
a page on which transactions are conducted, that connects directly to the
notice and is labeled appropriately to convey the importance, nature and
relevance of the notice.
(3)
"Collect" means to obtain information that the licensee
organizes or can retrieve by the name of an individual or by identifying
number, symbol or other identifying particular assigned to the individual,
irrespective of the source of the underlying information.
(4)
"Commissioner" means the Utah insurance commissioner.
(5)
"Company" means a corporation, limited liability company,
business trust, general or limited partnership, association, sole
proprietorship or similar organization.
(6)(a)
"Consumer" means an individual who seeks to obtain,
obtains or has obtained an insurance product or service, from a licensee
that is to be used primarily for personal, family or household purposes,
and about whom the licensee has nonpublic personal information, directly
or through a legal representative.
(b)
Examples.
(i)
An individual who provides nonpublic personal information to a
licensee in connection with obtaining or seeking to obtain financial,
investment or economic advisory services relating to an insurance product
or service is a consumer regardless of whether the licensee establishes an
ongoing advisory relationship.
(ii)
An applicant for insurance prior to the inception of insurance
coverage is a licensee's consumer.
(iii)
An individual who is a consumer of another financial institution is
not a licensee's consumer solely because the licensee is acting as agent
for, or provides processing or other services to, that financial
institution.
(iv)
An individual is a licensee's consumer if:
(A)(I)
the individual is a beneficiary of a life insurance policy
underwritten by the licensee;
(II)
the individual is a claimant under an insurance policy issued by
the licensee;
(III)
the individual is an insured or an annuitant under an insurance
policy or an annuity, respectively, issued by the licensee; or
(IV)
the individual is a mortgagor of a mortgage covered under a
mortgage insurance policy; and
(B)
the licensee discloses nonpublic personal financial information
about the individual to a nonaffiliated third party other than as
permitted under Sections 14, 15 and 16 of this rule.
(v)
Provided that the licensee provides the initial, annual and revised
notices under Sections 5, 6 and 9 of this rule to the plan sponsor, group
or blanket insurance policyholder or group annuity contractholder,
workers' compensation plan policyholder, and further provided that the
licensee does not disclose to a nonaffiliated third party nonpublic
personal financial information about such an individual other than as
permitted under Sections 14, 15 and 16 of this rule, an individual is not
the consumer of the licensee solely because he or she is:
(A)
A participant or a beneficiary of an employee benefit plan that the
licensee administers or sponsors or for which the licensee acts as a
trustee, insurer or fiduciary;
(B)
Covered under a group or blanket insurance policy or group annuity
contract issued by the licensee; or
(C)
A beneficiary in a workers' compensation plan.
(vi)(A)
The individuals described in Subsection R590-206- 4.(6)(b)(v)(A)
through (C) of this Paragraph are consumers of a licensee if the licensee
does not meet all the conditions of Subsection R590-206-4.(6)(b)(v).
(B)
In no event shall the individuals, solely by virtue of the status
described in Subsection R590-206-4.(6)(b)(v)(A) through (C) above, be
deemed to be customers for purposes of this rule.
(vii)
An individual is not a licensee's consumer solely because he or she
is a beneficiary of a trust for which the licensee is a trustee.
(viii)
An individual is not a licensee's consumer solely because he or she
has designated the licensee as trustee for a trust.
(7)
"Consumer reporting agency" has the same meaning as in
Section 603(f) of the federal Fair Credit Reporting Act (15 U.S.C.
1681a(f)).
(8)
"Control" means:
(a)
Ownership, control or power to vote 25% or more of the outstanding
shares of any class of voting security of the company, directly or
indirectly, or acting through one or more other persons;
(b)
Control in any manner over the election of a majority of the
directors, trustees or general partners, or individuals exercising similar
functions, of the company; or
(c)
The power to exercise, directly or indirectly, a controlling
influence over the management or policies of the company, as the
commissioner determines.
(9)
"Customer" means a consumer who has a customer
relationship with a licensee.
(10)(a)
"Customer relationship" means a continuing relationship
between a consumer and a licensee under which the licensee provides one or
more insurance products or services to the consumer that are to be used
primarily for personal, family or household purposes.
(b)
Examples.
(i)
A consumer has a continuing relationship with a licensee if:
(A) The
consumer is a current policyholder of an insurance product issued by or
through the licensee; or
(B) The
consumer obtains financial, investment or economic advisory services
relating to an insurance product or service from the licensee for a fee.
(ii)
A consumer does not have a continuing relationship with a licensee
if:
(A)
The consumer applies for insurance but does not purchase the
insurance;
(B)
The licensee sells the consumer airline travel insurance in an
isolated transaction;
(C)
The individual is no longer a current policyholder of an insurance
product or no longer obtains insurance services with or through the
licensee;
(D)
The consumer is a beneficiary or a claimant under a policy and has
submitted a claim under that policy;
(E)
The customer's policy is lapsed, expired, or otherwise inactive or
dormant under the licensee's business practices, and the licensee has not
communicated with the customer about the relationship for a period of 12
consecutive months, other than annual privacy notices, material required
by law or rule, communication at the direction of a state or federal
authority, or promotional materials;
(F)
The individual is an insured or an annuitant under an insurance
policy or annuity, respectively, but is not the policyholder or owner of
the insurance policy or annuity; or
(G)
For the purposes of this rule, the individual's last known address
according to the licensee's records is deemed invalid.
An address of record is deemed invalid if mail sent to that address
by the licensee has been returned by the postal authorities as
undeliverable and if subsequent attempts by the licensee to obtain a
current valid address for the individual have been unsuccessful.
(11)(a)
"Financial institution" means any institution the
business of which is engaging in activities that are financial in nature
or incidental to such financial activities as described in Section 4(k) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)).
(b)
Financial institution does not include:
(i)
Any person or entity with respect to any financial activity that is
subject to the jurisdiction of the Commodity Futures Trading Commission
under the Commodity Exchange Act (7 U.S.C. 1 et seq.);
(ii)
The Federal Agricultural Mortgage Corporation or any entity charged
and operating under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.);
or
(iii)
Institutions chartered by Congress specifically to engage in
securitizations, secondary market sales (including sales of servicing
rights) or similar transactions related to a transaction of a consumer, as
long as the institutions do not sell or transfer nonpublic personal
information to a nonaffiliated third party.
(12)(a)
"Financial product or service" means any product or
service that a financial holding company could offer by engaging in an
activity that is financial in nature or incidental to such a financial
activity under Section (4)(k) of the Bank Holding Company Act of 1956 (12
U.S.C. 1843(k)).
(b)
Financial service includes a financial institution's evaluation or
brokerage of information that the financial institution collects in
connection with a request or an application from a consumer for a
financial product or service.
(13)
"Health care" means:
(a)
Preventive, diagnostic, therapeutic, rehabilitative, maintenance or
palliative care, services, procedures, tests or counseling that:
(i)
Relates to the physical, mental or behavioral condition of an
individual; or
(ii)
Affects the structure or function of the human body or any part of
the human body, including the banking of blood, sperm, organs or any other
tissue; or
(b)
Prescribing, dispensing or furnishing to an individual drugs or
biologicals, or medical devices or health care equipment and supplies.
(14)
"Health care provider" means a physician or other health
care practitioner licensed, accredited or certified to perform specified
health services consistent with state law, or a health care facility.
(15)
"Health information" means any information or data except
age or gender, whether oral or recorded in any form or medium, created by
or derived from a health care provider or the consumer that relates to:
(a)
The past, present or future physical, mental or behavioral health
or condition of an individual;
(b)
The provision of health care to an individual; or
(c)
Payment for the provision of health care to an individual.
(16)(a)
"Insurance product or service" means any product or
service that is offered by a licensee pursuant to the insurance laws of
this state.
(b)
Insurance service includes a licensee's evaluation, brokerage or
distribution of information that the licensee collects in connection with
a request or an application from a consumer for a insurance product or
service.
(17)(a)
"Licensee" means all licensed insurers, producers and
other persons licensed or required to be licensed, or authorized or
required to be authorized, or registered or required to be registered
pursuant to the insurance laws of this state.
(b)
A licensee is not subject to the notice and opt out requirements
for nonpublic personal financial information set forth in Sections 1
through 17 of this rule if the licensee is an employee, agent or other
representative of another licensee, "the principal," and:
(i)
The principal otherwise complies with, and provides the notices
required by, the provisions of this rule; and
(ii) The
licensee does not disclose any non-public personal financial information
or a consumer or customer to any person other than the principal from or
through which such consumer or customer seeks to obtain, or has obtained,
a product or service or its affiliates in a manner permitted by this rule.
(c)(i)
Subject to Subsection R590-206-4.(17)(b)(ii), "licensee"
shall also include an unauthorized insurer that accepts business placed
through a licensed surplus lines broker in this state, but only in regard
to the surplus lines placements placed pursuant to Section 31A-15-103 of
this state's laws.
(ii)
A surplus lines broker or surplus lines insurer shall be deemed to
be in compliance with the notice and opt out requirements for nonpublic
personal financial information set forth in Sections 1 through 17 of this
rule provided:
(A)
The broker or insurer does not disclose nonpublic personal
financial information of a consumer or a customer to nonaffiliated third
parties for any purpose, including joint servicing or marketing under
Section 14 of this rule, except as permitted by Section 15 or 16 of this
rule; and
(B)
The broker or insurer delivers a notice to the consumer at the time
a customer relationship is established on which the following is printed
in 16-point type:
PRIVACY
NOTICE
"NEITHER
THE U.S. BROKERS THAT HANDLED THIS INSURANCE NOR THE INSURERS THAT HAVE
UNDERWRITTEN THIS INSURANCE WILL DISCLOSE NONPUBLIC PERSONAL FINANCIAL
INFORMATION CONCERNING THE BUYER TO NONAFFILIATES OF THE BROKERS OR
INSURERS EXCEPT AS PERMITTED BY LAW.
(18)(a)
"Nonaffiliated third party" means any person except:
(i)
A licensee's affiliate; or
(ii)
A person employed jointly by a licensee and any company that is not
the licensee's affiliate (but nonaffiliated third party includes the other
company that jointly employs the person).
(b)
Nonaffiliated third party includes any company that is an affiliate
solely by virtue of the direct or indirect ownership or control of the
company by the licensee or its affiliate in conducting merchant banking or
investment banking activities of the type described in Subsection
R590-206-4.(k)(4)(H) or insurance company investment activities of the
type described in Section 4(k)(4)(I) of the federal Bank Holding Company
Act (12 U.S.C. 1843(k)(4)(H) and (I)).
(19)
"Nonpublic personal information" means nonpublic personal
financial information and nonpublic personal health information.
(20)(a)
"Nonpublic personal financial information" means:
(i)
Personally identifiable financial information; and
(ii)
Any list, description or other grouping of consumers, and publicly
available information pertaining to them, that is derived using any
personally identifiable financial information that is not publicly
available.
(b)
Nonpublic personal financial information does not include:
(i)
Health informatio
(ii)
Publicly available information, except as included on a list
described in Subsection R590-206-4.(20)(a)(ii); or
(iii)
Any list, description or other grouping of consumers, and publicly
available information pertaining to them, that is derived without using
any personally identifiable financial information that is not publicly
available.
(c)
Examples of lists.
(i)
Nonpublic personal financial information includes any list of
individuals' names and street addresses that is derived in whole or in
part using personally identifiable financial information that is not
publicly available, such as account numbers.
(ii)
Nonpublic personal financial information does not include any list
of individuals' names and addresses that contains only publicly available
information, is not derived in whole or in part using personally
identifiable financial information that is not publicly available, and is
not disclosed in a manner that indicates that any of the individuals on
the list is a consumer of a financial institution.
(21)
"Nonpublic personal health information" means health
information:
(a)
That identifies an individual who is the subject of the
information; or
(b)
With respect to which there is a reasonable basis to believe that
the information could be used to identify an individual.
(22)(a)
"Personally identifiable financial information" means any
information:
(i)
A consumer provides to a licensee to obtain an insurance product or
service from the licensee;
(ii)
About a consumer resulting from a transaction involving an
insurance product or service between a licensee and a consumer; or
(iii)
The licensee otherwise obtains about a consumer in connection with
providing an insurance product or service to that consumer.
(b)
Examples.
(i)
Information included. Personally identifiable financial information
includes:
(A)
Information a consumer provides to a licensee on an application to
obtain an insurance product or service;
(B)
Account balance information and payment history;
(C)
The fact that an individual is or has been one of the licensee's
customers or has obtained an insurance product or service from the
licensee;
(D)
Any information about the licensee's consumer if it is disclosed in
a manner that indicates that the individual is or has been the licensee's
consumer;
(E)
Any information that a consumer provides to a licensee or that the
licensee or its agent otherwise obtains in connection with collecting on a
loan or servicing a loan;
(F)
Any information the licensee collects through an Internet cookie,
an information-collecting device from a web server; and
(G)
Information from a consumer report.
(ii)
Information not included. Personally identifiable financial
information does not include:
(A)
Health information;
(B)
A list of names and addresses of customers of an entity that is not
a financial institution; and
(C)
Information that does not identify a consumer, such as aggregate
information or blind data that does not contain personal identifiers such
as account numbers, names or addresses.
(23)(a)
"Publicly available information" means any information
that a licensee has a reasonable basis to believe is lawfully made
available to the general public from:
(i)
Federal, state or local government records;
(ii)
Widely distributed media; or
(iii)
Disclosures to the general public that are required to be made by
federal, state or local law.
(b)
Reasonable basis. A licensee has a reasonable basis to believe that
information is lawfully made available to the general public if the
licensee has taken steps to determine:
(i)
That the information is of the type that is available to the
general public; and
(ii)
Whether an individual can direct that the information not be made
available to the general public and, if so, that the licensee's consumer
has not done so.
(c)
Examples.
(i)
Government records. Publicly available information in government
records includes information in government real estate records and
security interest filings.
(ii)
Widely distributed media. Publicly available information from
widely distributed media includes information from a telephone book, a
television or radio program, a newspaper or a web site that is available
to the general public on an unrestricted basis. A web site is not
restricted merely because an Internet service provider or a site operator
requires a fee or a password, so long as access is available to the
general public.
(iii)
Reasonable basis.
(A)
A licensee has a reasonable basis to believe that mortgage
information is lawfully made available to the general public if the
licensee has determined that the information is of the type included on
the public record in the jurisdiction where the mortgage would be
recorded.
(B) A
licensee has a reasonable basis to believe that an individual's telephone
number is lawfully made available to the general public if the licensee
has located the telephone number in the telephone book or the consumer has
informed you that the telephone number is not unlisted.
R590-206-5.
Initial Privacy Notice to Consumers Required.
(1) Initial notice
requirement. A licensee shall
provide a clear and conspicuous notice that accurately reflects its
privacy policies and practices to:
(a)
Customer. An
individual who becomes the licensee's customer, not later than when the
licensee establishes a customer relationship, except as provided in
Subsection R590-206-5.(5) of this section; and
(b)
Consumer. A consumer,
before the licensee discloses any nonpublic personal financial information
about the consumer to any nonaffiliated third party, if the licensee makes
a disclosure other than as authorized by Sections 15 and 16.
(2)
When initial notice to a consumer is not required.
A licensee is not required to provide an initial notice to a
consumer under Subsection R590-206-5.(1)(b) of this section if:
(a)
The licensee does not disclose any nonpublic personal financial
information about the consumer to any nonaffiliated third party, other
than as authorized by Sections 15 and 16, and the licensee does not have a
customer relationship with the consumer; or
(b)
A notice has been provided by an affiliated licensee, as long as
the notice clearly identifies all licensees to whom the notice applies and
is accurate with respect to the licensee and the other institutions.
(3)
When the licensee establishes a customer relationship.
(a)
General rule. A
licensee establishes a customer relationship at the time the licensee and
the consumer enter into a continuing relationship.
(b)
Examples of establishing customer relationship. A licensee
establishes a customer relationship when the consumer:
(i)
Becomes a policyholder of a licensee that is an insurer when the
insurer delivers an insurance policy or contract to the consumer, or in
the case of a licensee that is an insurance producer or insurance broker,
obtains insurance through that licensee; or
(ii)
Agrees to obtain financial, economic or investment advisory
services relating to insurance products or services for a fee from the
licensee.
(4)
Existing customers. When
an existing customer obtains a new insurance product or service from a
licensee that is to be used primarily for personal, family or household
purposes, the licensee satisfies the initial notice requirements of
Subsection R590-206-5.(1) of this section as follows:
(a)
The licensee may provide a revised policy notice, under Section 9,
that covers the customer's new insurance product or service; or
(b)
If the initial, revised or annual notice that the licensee most
recently provided to that customer was accurate with respect to the new
insurance product or service, the licensee does not need to provide a new
privacy notice under Subsection R590-206-5.(1) of this section.
(5)
Exceptions to allow subsequent delivery of notice.
(a)
A licensee may provide the initial notice required by Subsection
R590-206-5.(1)(a) of this section within a reasonable time after the
licensee establishes a customer relationship if:
(i)
Establishing the customer relationship is not at the customer's
election; or
(ii)
Providing notice not later than when the licensee establishes a
customer relationship would substantially delay the customer's transaction
and the customer agrees to receive the notice at a later time.
(b)
Examples of exceptions.
(i)
Not at customer's election. Establishing a customer relationship is
not at the customer's election if a licensee acquires or is assigned a
customer's policy from another financial institution or residual market
mechanism and the customer does not have a choice about the licensee's
acquisition or assignment.
(ii)
Substantial delay of customer's transaction. Providing notice not
later than when a licensee establishes a customer relationship would
substantially delay the customer's transaction when the licensee and the
individual agree over the telephone to enter into a customer relationship
involving prompt delivery of the insurance product or service.
(iii)
No substantial delay of customer's transaction. Providing notice
not later than when a licensee establishes a customer relationship would
not substantially delay the customer's transaction when the relationship
is initiated in person at the licensee's office or through other means by
which the customer may view the notice, such as on a web site.
(6)
Delivery. When a
licensee is required to deliver an initial privacy notice by this section,
the licensee shall deliver it according to Section 10.
If the licensee uses a short-form initial notice for non-customers
according to Subsection R590-206-7.(4) the licensee may deliver its
privacy notice according to Subsection R590-206-7.(4)(c).
R590-206-6.
Annual Privacy Notice to Customers Required.
(1)(a) General rule.
A licensee shall provide a clear and conspicuous notice to
customers that accurately reflects its privacy policies and practices not
less than annually during the continuation of the customer relationship.
Annually means at least once in any period of 12 consecutive months
during which that relationship exists.
A licensee may define the 12 consecutive month period, but the
licensee shall apply it to the customer on a consistent basis.
(b)
Example. A licensee
provides a notice annually if it defines the 12 consecutive month period
as a calendar year and provides the annual notice to the customer once in
each calendar year following the calendar year in which the licensee
provided the initial notice. For example, if a customer opens an account
on any day of year 1, the licensee shall provide an annual notice to that
customer by December 31 of year two.
(2)(a)
Termination of customer relationship.
A licensee is not required to provide an annual notice to a former
customer. A former customer
is an individual with whom a licensee no longer has a continuing
relationship.
(b)
Examples.
(i)
A licensee no longer has a continuing relationship with an
individual if the individual no longer is a current policyholder of an
insurance product or no longer obtains insurance services with or through
the licensee.
(ii)
A licensee no longer has a continuing relationship with an
individual if the individual's policy is lapsed, expired or otherwise
inactive or dormant under the licensee's business practices, and the
licensee has not communicated with the customer about the relationship for
a period of twelve 12 consecutive months, other than to provide annual
privacy notices, material required by law or rule, or promotional
materials.
(iii)
For the purposes of this rule, a licensee no longer has a
continuing relationship with an individual if the individual's last known
address according to the licensee's records is deemed invalid.
An address of record is deemed invalid if mail sent to that address
by the licensee has been returned by the postal authorities as
undeliverable and if subsequent attempts by the licensee to obtain a
current valid address for the individual have been unsuccessful.
(iv)
A licensee no longer has a continuing relationship with a customer
in the case of providing real estate settlement services, at the time the
customer completes execution of all documents related to the real estate
closing, payment for those services has been received, or the licensee has
completed all of its responsibilities with respect to the settlement,
including filing documents on the public record, whichever is later.
(3) Delivery.
When a licensee is required by this section to deliver an annual
privacy notice, the licensee shall deliver it according to Section 10.
R590-206-7.
Information to be Included in Privacy Notices.
(1) General rule. The
initial, annual and revised privacy notices that a licensee provides under
Sections 5, 6 and 9 shall include each of the following items of
information, in addition to any other information the licensee wishes to
provide, that applies to the licensee and to the consumers to whom the
licensee sends its privacy notice:
(a)
The categories of nonpublic personal financial information that the
licensee collects;
(b)
The categories of nonpublic personal financial information that the
licensee discloses;
(c)
The categories of affiliates and nonaffiliated third parties to
whom the licensee discloses nonpublic personal financial information,
other than those parties to whom the licensee discloses information under
Sections 15 and 16;
(d)
The categories of nonpublic personal financial information about
the licensee's former customers that the licensee discloses and the
categories of affiliates and nonaffiliated third parties to whom the
licensee discloses nonpublic personal financial information about the
licensee's former customers, other than those parties to whom the licensee
discloses information under Sections 15 and 16;
(e)
If a licensee discloses nonpublic personal financial information to
a nonaffiliated third party under Section 14, and no other exception in
Sections 15 and 16 applies to that disclosure, a separate description of
the categories of information the licensee discloses and the categories of
third parties with whom the licensee has contracted;
(f)
An explanation of the consumer's right under Subsection
R590-206-11.(1) to opt out of the disclosure of nonpublic personal
financial information to nonaffiliated third parties, including the
methods by which the consumer may exercise that right at that time;
(g)
Any disclosures that the licensee makes under Section 603(d)(2)(A)(iii)
of the federal Fair Credit Reporting Act (15 U.S.C. 1681a(d)(2)(A)(iii))
(that is, notices regarding the ability to opt out of disclosures of
information among affiliates);
(h)
The licensee's policies and practices with respect to protecting
the confidentiality and security of nonpublic personal financial
information; and
(i)
Any disclosure that the licensee makes under Subsection
R590-206-7.(2).
(2)
Description of parties subject to exceptions. If a licensee
discloses nonpublic personal financial information as authorized under
Sections 15 and 16, the licensee is not required to list those exceptions
in the initial or annual privacy notices required by Sections 5 and 6. When describing the categories of parties to whom disclosure
is made, the licensee is required to state only that it makes disclosures
to other affiliated or nonaffiliated third parties, as applicable, as
permitted by law.
(3)
Examples.
(a) Categories
of nonpublic personal financial information that the licensee collects.
A licensee satisfies the requirement to categorize the nonpublic
personal financial information it collects if the licensee categorizes it
according to the source of the information, as applicable:
(i)
Information from the consumer;
(ii)
Information about the consumer's transactions with the licensee or
its affiliates;
(iii)
Information about the consumer's transactions with nonaffiliated
third parties; and
(iv)
Information from a consumer reporting agency.
(b)
Categories of nonpublic personal financial information a licensee
discloses.
(i)
A licensee satisfies the requirement to categorize nonpublic
personal financial information it discloses if the licensee categorizes
the information according to source, as described in Subsection
R590-206-7.(3)(a), as applicable, and provides a few examples to
illustrate the types of information in each category. These might include:
(A)
Information from the consumer, including application information,
such as assets and income and identifying information, such as name,
address and social security number;
(B)
Transaction information, such as information about balances,
payment history and parties to the transaction; and
(C)
Information from consumer reports, such as a consumer's
creditworthiness and credit history.
(ii)
A licensee does not adequately categorize the information that it
discloses if the licensee uses only general terms, such as transaction
information about the consumer.
(iii)
If a licensee reserves the right to disclose all of the nonpublic
personal financial information about consumers that it collects, the
licensee may simply state that fact without describing the categories or
examples of nonpublic personal financial information that the licensee
discloses.
(c)
Categories of affiliates and nonaffiliated third parties to whom
the licensee discloses.
(i)
A licensee satisfies the requirement to categorize the affiliates
and nonaffiliated third parties to which the licensee discloses nonpublic
personal financial information about consumers if the licensee identifies
the types of businesses in which they engage.
(ii)
Types of businesses may be described by general terms only if the
licensee uses a few illustrative examples of significant lines of
business. For example, a
licensee may use the term financial products or services if it includes
appropriate examples of significant lines of businesses, such as life
insurer, automobile insurer, consumer banking or securities brokerage.
(iii)
A licensee also may categorize the affiliates and nonaffiliated
third parties to which it discloses nonpublic personal financial
information about consumers using more detailed categories.
(d)
Disclosures under exception for service providers and joint
marketers. If a licensee
discloses nonpublic personal financial information under the exception in
Section 14 to a nonaffiliated third party to market products or services
that it offers alone or jointly with another financial institution, the
licensee satisfies the disclosure requirement of Subsection
R590-206-7.(1)(e) of this section if it:
(i)
Lists the categories of nonpublic personal financial information it
discloses, using the same categories and examples the licensee used to
meet the requirements of Subsection R590-206-7.(1)(b) of this section, as
applicable; and
(ii)
States whether the third party is:
(A)
A service provider that performs marketing services on the
licensee's behalf or on behalf of the licensee and another financial
institution; or
(B)
A financial institution with whom the licensee has a joint
marketing agreement.
(e)
Simplified notices. If
a licensee does not disclose, and does not wish to reserve the right to
disclose, nonpublic personal financial information about customers or
former customers to affiliates or nonaffiliated third parties except as
authorized under Sections 15 and 16, the licensee may simply state that
fact, in addition to the information it shall provide under Subsections
R590-206-7.(1)(a), 7.(1)(h), 7.(1)(i), and 7.(2).
(f)
Confidentiality and security.
A licensee describes its policies and practices with respect to
protecting the confidentiality and security of nonpublic personal
financial information if it does both of the following:
(i)
Describes in general terms who is authorized to have access to the
information; and
(ii)
States whether the licensee has security practices and procedures
in place to ensure the confidentiality of the information in accordance
with the licensee's policy. The
licensee is no
required to describe technical information about the safeguards it uses.
(4)
Short-form initial notice with opt out notice for non-customers.
(a)
A licensee may satisfy the initial notice requirements in
Subsections R590-206-5.(1)(b) and Subsection R590-206-8.(3) for a consumer
who is not a customer by providing a short-form initial notice at the same
time as the licensee delivers an opt out notice as required in Section 8.
(b)
A short-form initial notice shall:
(i)
Be clear and conspicuous;
(ii)
State that the licensee's privacy notice is available upon request;
and
(iii)
Explain a reasonable means by which the consumer may obtain that
notice.
(c)
The licensee shall deliver its short-form initial notice according
to Section 10. The licensee
is not required to deliver its privacy notice with its short-form initial
notice. The licensee instead
may simply provide the consumer a reasonable means to obtain its privacy
notice. If a consumer who receives the licensee's short-form notice
requests the licensee's privacy notice, the licensee shall deliver its
privacy notice according to Section 10.
(d)
Examples of obtaining privacy notice.
The licensee provides a reasonable means by which a consumer may
obtain a copy of its privacy notice if the licensee:
(i)
Provides a toll-free telephone number that the consumer may call to
request the notice; or
(ii)
For a consumer who conducts business in person at the licensee's
office, maintains copies of the notice on hand that the licensee provides
to the consumer immediately upon request.
(5)
Future disclosures. The
licensee's notice may include:
(a)
Categories of nonpublic personal financial information that the
licensee reserves the right to disclose in the future, but does not
currently disclose; and
(b)
Categories of affiliates or nonaffiliated third parties to whom the
licensee reserves the right in the future to disclose, but to whom the
licensee does not currently disclose, nonpublic personal financial
information.
(6) Sample
clauses. Sample clauses
illustrating some of the notice content required by this section are found
in Appendix A - Sample Clauses, of the Model Rule entitled, "Privacy
of Consumer Financial and Health Information Regulation," adopted
September 26, 2000, by the National Association of Insurance
Commissioners. Appendix A is
incorporated by reference and available for inspection at the Department
of Insurance and the Department of Administrative Rules.
R590-206-8.
Form of Opt Out Notice to Consumers and Opt Out Methods.
(1)(a) Form of opt out
notice. If a licensee is
required to provide an opt out notice under Subsection R590-206-11.(1), it
shall provide a clear and conspicuous notice to each of its consumers that
accurately explains the right to opt out under that section.
The notice shall state:
(i)
That the licensee discloses or reserves the right to disclose
nonpublic personal financial information about its consumer to a
nonaffiliated third party;
(ii)
That the consumer has the right to opt out of that disclosure; and
(iii)
A reasonable means by which the consumer may exercise the opt out
right.
(b)
Examples.
(i)
Adequate opt out notice. A
licensee provides adequate notice that the consumer can opt out of the
disclosure of nonpublic personal financial information to a nonaffiliated
third party if the licensee:
(A) Identifies
all of the categories of nonpublic personal financial information that it
discloses or reserves the right to disclose, and all of the categories of
nonaffiliated third parties to which the licensee discloses the
information, as described in Subsections R590-206-7.(1)(b) and
R590-206-7.(1)(c), and states that the consumer can opt out of the
disclosure of that information; and
(B)
Identifies the insurance products or services that the consumer
obtains from the licensee, either singly or jointly, to which the opt out
direction would apply.
(ii)
Reasonable opt out means. A
licensee provides a reasonable means to exercise an opt out right if it:
(A)
Designates check-off boxes in a prominent position on the relevant
forms with the opt out notice;
(B)
Includes a reply form together with the opt out notice;
(C)
Provides an electronic means to opt out, such as a form that can be
sent via electronic mail or a process at the licensee's web site, if the
consumer agrees to the electronic delivery of information; or
(D) Provides
a toll-free telephone number that consumers may call to opt out.
(iii)
Unreasonable opt out means. A
licensee does not provide a reasonable means of opting out if:
(A)
The only means of opting out is for the consumer to write his or
her own letter to exercise that opt out right; or
(B)
The only means of opting out as described in any notice subsequent
to the initial notice is to use a check-off box that the licensee provided
with the initial notice but did not include with the subsequent notice.
(iv)
Specific opt out means. A
licensee may require each consumer to opt out through a specific means, as
long as that means is reasonable for that consumer.
(2) Same
form as initial notice permitted. A
licensee may provide the opt out notice together with or on the same
written or electronic form as the initial notice the licensee provides in
accordance with Section 5.
(3)
Initial notice required when opt out notice delivered subsequent to
initial notice. If a licensee
provides the opt out notice later than required for the initial notice in
accordance with Section 5, the licensee shall also include a copy of the
initial notice with the opt out notice in writing or, if the consumer
agrees, electronically.
(4)
Joint relationships.
(a)
If two or more consumers jointly obtain an insurance product or
service from a licensee, the licensee may provide a single opt out notice.
The licensee's opt out notice shall explain how the licensee will
treat an opt out direction by a joint consumer, as explained in Subsection
R590-206-8.(4)(e).
(b)
Any of the joint consumers may exercise the right to opt out.
The licensee may either:
(i)
Treat an opt out direction by a joint consumer as applying to all
of the associated joint consumers; or
(ii)
Permit each joint consumer to opt out separately.
(c)
If a licensee permits each joint consumer to opt out separately,
the licensee shall permit one of the joint consumers to opt out on behalf
of all of the joint consumers.
(d)
A licensee may not require all joint consumers to opt out before it
implements any opt out direction.
(e)
Example. If John and Mary are both named policyholders on a
homeowner's insurance policy issued by a licensee and the licensee sends
policy statements to John's address, the licensee may do any of the
following, but it shall explain in its opt out notice which opt out policy
the licensee will follow:
(i)
Send a single opt out notice to John's address, but the licensee
shall accept an opt out direction from either John or Mary.
(ii)
Treat an opt out direction by either John or Mary as applying to
the entire policy. If the
licensee does so and John opts out, the licensee may not require Mary to
opt out as well before implementing John's opt out direction.
(iii)
Permit John and Mary to make different opt out directions.
If the licensee does so:
(A)
It shall permit John and Mary to opt out for each other;
(B)
If both opt out, the licensee shall permit both of them to notify
it in a single response, such as on a form or through a telephone call;
and
(C)
If John opts out and Mary does not, the licensee may only disclose
nonpublic personal financial information about Mary, but not about John
and not about John and Mary jointly.
(5)
Time to comply with opt out. A
licensee shall comply with a consumer's opt out direction as soon as
reasonably practicable after the licensee receives it.
(6)
Continuing right to opt out. A
consumer may exercise the right to opt out at any time.
(7)
Duration of consumer's opt out direction.
(a)
A consumer's direction to opt out under this section is effective
until the consumer revokes it in writing or, if the consumer agrees,
electronically.
(b)
When a customer relationship terminates, the customer's opt out
direction continues to apply to the nonpublic personal financial
information that the licensee collected during or related to that
relationship. If the
individual subsequently establishes a new customer relationship with the
licensee, the opt out direction that applied to the former relationship
does not apply to the new relationship.
(8) Delivery.
When a licensee is required to deliver an opt out notice by this
section, the licensee shall deliver it according to Section 10.
R590-206-9.
Revised Privacy Notices.
(1) General rule.
Except as otherwise authorized in this rule, a licensee shall not,
directly or through an affiliate, disclose any nonpublic personal
financial information about a consumer to a nonaffiliated third party
other than as described in the initial notice that the licensee provided
to that consumer under Section 5, unless:
(a)
The licensee has provided to the consumer a clear and conspicuous
revised notice that accurately describes its policies and practices;
(b)
The licensee has provided to the consumer a new opt out notice;
(c)
The licensee has given the consumer a reasonable opportunity,
before the licensee discloses the information to the nonaffiliated third
party, to opt out of the disclosure; and
(d)
The consumer does not opt out.
(2) Examples.
(a) Except
as otherwise permitted by Sections 14, 15 and 16, a licensee shall provide
a revised notice before it:
(i)
Discloses a new category of nonpublic personal financial
information to any nonaffiliated third party;
(ii)
Discloses nonpublic personal financial information to a new
category of nonaffiliated third party; or
(iii)
Discloses nonpublic personal financial information about a former
customer to a nonaffiliated third party, if that former customer has not
had the opportunity to exercise an opt out right regarding that
disclosure.
(b)
A revised notice is not required if the licensee discloses
nonpublic personal financial information to a new nonaffiliated third
party that the licensee adequately described in its prior notice.
(3)
Delivery. When a
licensee is required to deliver a revised privacy notice by this section,
the licensee shall deliver it according to Section 10.
R590-206-10.
Delivery.
(1) How to provide
notices. A licensee shall
provide any notices that this rule requires so that each consumer can
reasonably be expected to receive actual notice in writing or, if the
consumer agrees, electronically.
(2)(a)
Examples of reasonable expectation of actual notice.
A licensee may reasonably expect that a consumer will receive
actual notice if the licensee:
(i)
Hand-delivers a printed copy of the notice to the consumer;
(ii)
Mails a printed copy of the notice to the last known address of the
consumer separately, or in a policy, billing or other written
communication;
(iii)
For a consumer who conducts transactions electronically, posts the
notice on the electronic site and requires the consumer to acknowledge
receipt of the notice as a necessary step to obtaining a particular
insurance product or service;
(iv)
For an isolated transaction with a consumer, such as the licensee
providing an insurance quote or selling the consumer travel insurance,
posts the notice and requires the consumer to acknowledge receipt of the
notice as a necessary step to obtaining the particular insurance product
or service.
(b)
Examples of unreasonable expectation of actual notice.
A licensee may not, however, reasonably expect that a consumer will
receive actual notice of its privacy policies and practices if it:
(i)
Only posts a sign in its office or generally publishes
advertisements of its privacy policies and practices; or
(ii)
Sends the notice via electronic mail to a consumer who does not
obtain an insurance product or service from the licensee electronically.
(3)
Annual notices only. A
licensee may reasonably expect that a customer will receive actual notice
of the licensee's annual privacy notice if:
(a)
The customer uses the licensee's web site to access insurance
products and services electronically and agrees to receive notices at the
web site and the licensee posts its current privacy notice continuously in
a clear and conspicuous manner on the web site; or
(b)
The customer has requested that the licensee refrain from sending
any information regarding the customer relationship, and the licensee's
current privacy notice remains available to the customer upon request.
(4)
Oral description of notice insufficient. A licensee may not provide any notice required by this rule
solely by orally explaining the notice, either in person or over the
telephone.
(5)
Retention or accessibility of notices for customers.
(a)
For customers only, a licensee shall provide the initial notice
required by Subsection R590-206-5.(1)(a), the annual notice required by
Subsection R590-206-6.(1), and the revised notice required by Section 9 so
that the customer can retain them or obtain them later in writing or, if
the customer agrees, electronically.
(b)
Examples of retention or accessibility.
A licensee provides a privacy notice to the customer so that the
customer can retain it or obtain it later if the licensee:
(i)
Hand-delivers a printed copy of the notice to the customer;
(ii) Mails a printed
copy of the notice to the last known address of the customer; or
(iii)
Makes its current privacy notice available on a web site (or a link
to another web site) for the customer who obtains an insurance product or
service electronically and agrees to receive the notice at the web site.
(6)
Joint notice with other financial institutions.
A licensee may provide a joint notice from the licensee and one or
more of its affiliates or other financial institutions, as identified in
the notice, as long as the notice is accurate with respect to the licensee
and the other institutions. A
licensee also may provide a notice on behalf of another financial
institution.
(7)
Joint relationships. If
two or more consumers jointly obtain an insurance product or service from
a licensee, the licensee may satisfy the initial, annual and revised
notice requirements of Subsections R590-206-5.(1), 6.(1) and 9.(1),
respectively, by providing one notice to those consumers jointly.
R590-206-11.
Limits on Disclosure of Nonpublic Personal Financial Information to
Nonaffiliated Third Parties.
(1)(a) Conditions for
disclosure. Except as
otherwise authorized in this rule, a licensee may not, directly or through
any affiliate, disclose any nonpublic personal financial information about
a consumer to a nonaffiliated third party unless:
(i)
The licensee has provided to the consumer an initial notice as
required under Section 5;
(ii)
The licensee has provided to the consumer an opt out notice as
required in Section 8;
(iii)
The licensee has given the consumer a reasonable opportunity,
before it discloses the information to the nonaffiliated third party, to
opt out of the disclosure; and
(iv)
The consumer does not opt out.
(b)
Opt out definition. Opt
out means a direction by the consumer that the licensee not disclose
nonpublic personal financial information about that consumer to a
nonaffiliated third party, other than as permitted by Sections 14, 15 and
16.
(c)
Examples of reasonable opportunity to opt out. A licensee provides a consumer with a reasonable opportunity
to opt out if:
(i)
By mail. The licensee
mails the notices required in Subsection R590-206-11.(1)(a) to the
consumer and allows the consumer to opt out by mailing a form, calling a
toll-free telephone number or any other reasonable means within 30 days
from the date the licensee mailed the notices.
(ii)
By electronic means. A
customer opens an on-line account with a licensee and agrees to receive
the notices required in Subsection R590-206-11.(1)(a) electronically, and
the licensee allows the customer to opt out by any reasonable means within
30 days after the date that the customer acknowledges receipt of the
notices in conjunction with opening the account.
(iii)
Isolated transaction with consumer.
For an isolated transaction such as providing the consumer with an
insurance quote, a licensee provides the consumer with a reasonable
opportunity to opt out if the licensee provides the notices required in
Subsection R590-206-11.(1)(a) at the time of the transaction and requests
that the consumer decide, as a necessary part of the transaction, whether
to opt out before completing the transaction.
(2)
Application of opt out to all consumers and all nonpublic personal
financial information.
(a)
A licensee shall comply with this section, regardless of whether
the licensee and the consumer have established a customer relationship.
(b)
Unless a licensee complies with this section, the licensee may not,
directly or through any affiliate, disclose any nonpublic personal
financial information about a consumer that the licensee has collected,
regardless of whether the licensee collected it before or after receiving
the direction to opt out from the consumer.
(3)
Partial opt out. A
licensee may allow a consumer to select certain nonpublic personal
financial information or certain nonaffiliated third parties with respect
to which the consumer wishes to opt out.
R590-206-12.
Limits on Redisclosure and Reuse of Nonpublic Personal Financial
Information.
(1)(a) Information the
licensee receives under an exception.
If a licensee receives nonpublic personal financial information
from a nonaffiliated financial institution under an exception in Sections
15 or 16 of this rule, the licensee's disclosure and use of that
information is limited as follows:
(i)
The licensee may disclose the information to the affiliates of the
financial institution from which the licensee received the information;
(ii)
The licensee may disclose the information to its affiliates, but
the licensee's affiliates may, in turn, disclose and use the information
only to the extent that the licensee may disclose and use the information;
and
(iii)
The licensee may disclose and use the information pursuant to an
exception in Sections 15 or 16 of this rule, in the ordinary course of
business to carry out the activity covered by the exception under which
the licensee received the information.
(b)
Example. If a licensee
receives information from a nonaffiliated financial institution for claims
settlement purposes, the licensee may disclose the information for fraud
prevention, or in response to a properly authorized subpoena.
The licensee may not disclose that information to a third party for
marketing purposes or use that information for its own marketing purposes.
(2)(a)
Information a licensee receives outside of an exception.
If a licensee receives nonpublic personal financial information
from a nonaffiliated financial institution other than under an exception
in Sections 15 or 16 of this rule, the licensee may disclose the
information only:
(i)
To the affiliates of the financial institution from which the
licensee received the information;
(ii)
To its affiliates, but its affiliates may, in turn, disclose the
information only to the extent that the licensee may disclose the
information; and
(iii)
To any other person, if the disclosure would be lawful if made
directly to that person by the financial institution from which the
licensee received the information.
(b)
Example. If a licensee
obtains a customer list from a nonaffiliated financial institution outside
of the exceptions in Sections 15 or 16:
(i)
The licensee may use that list for its own purposes; and
(ii)
The licensee may disclose that list to another nonaffiliated third
party only if the financial institution from which the licensee purchased
the list could have lawfully disclosed the list to that third party.
That is, the licensee may disclose the list in accordance with the
privacy policy of the financial institution from which the licensee
received the list, as limited by the opt out direction of each consumer
whose nonpublic personal financial information the licensee intends to
disclose, and the licensee may disclose the list in accordance with an
exception in Sections 15 or 16, such as to the licensee's attorneys or
accountants.
(3) Information
a licensee discloses under an exception.
If a licensee discloses nonpublic personal financial information to
a nonaffiliated third party under an exception in Sections 15 & 16 of
this rule, the third party may disclose and use that information only as
follows:
(a) The third party
may disclose the information to the licensee's affiliates;
(b)
The third party may disclose the information to its affiliates, but
its affiliates may, in turn, disclose and use the information only to the
extent that the third party may disclose and use the information; and
(c)
The third party may disclose and use the information pursuant to an
exception in Sections 15 or 16 in the ordinary course of business to carry
out the activity covered by the exception under which it received the
information.
(4)
Information a licensee discloses outside of an exception.
If a licensee discloses nonpublic personal financial information to
a nonaffiliated third party other than under an exception in Sections 15
or 16 of this rule, the third party may disclose the information only:
(a)
To the licensee's affiliates;
(b)
To the third party's affiliates, but the third party's affiliates,
in turn, may disclose the information only to the extent the third party
can disclose the information; and
(c)
To any other person, if the disclosure would be lawful if the
licensee made it directly to that person.
R590-206-13.
Limits on Sharing Account Number Information for Marketing
Purposes.
(1) General
prohibition on disclosure of account numbers.
A licensee shall not, directly or through an affiliate, disclose,
other than to a consumer reporting agency, a policy number or similar form
of access number or access code for a consumer's policy or transaction
account to any nonaffiliated third party for use in telemarketing, direct
mail marketing or other marketing through electronic mail to the consumer.
(2) Exceptions.
R590-206-13.(1) does not apply if a licensee discloses a policy
number or similar form of access number or access code:
(a)
To the licensee's service provider solely in order to perform
marketing for the licensee's own products or services, as long as the
service provider is not authorized to directly initiate charges to the
account;
(b)
To a licensee who is a producer solely in order to perform
marketing for the licensee's own products or services; or
(c) To a participant in an affinity or similar program where the
participants in the program are identified to the customer when the
customer enters into the program.
(3)
Examples.
(a)
Policy number. A
policy number, or similar form of access number or access code, does not
include a number or code in an encrypted form, as long as the licensee
does not provide the recipient with a means to decode the number or code.
(b)
Policy or transaction account.
For the purposes of this section, a policy or transaction account
is an account other than a deposit account or a credit card account.
A policy or transaction account does not include an account to
which third parties cannot initiate charges.
R590-206-14.
Exception to Opt Out Requirements for Disclosure of Nonpublic
Personal Financial Information for Service Providers and Joint Marketing.
(1) General rule.
(a)
The opt out requirements in Sections 8 and 11 do not apply when a
licensee provides nonpublic personal financial information to a
nonaffiliated third party to perform services for the licensee or
functions on the licensee's behalf, if the licensee:
(i)
Provides the initial notice in accordance with Section 5; and
(ii)
Enters into a contractual agreement with the third party that
prohibits the third party from disclosing or using the information other
than to carry out the purposes for which the licensee disclosed the
information, including use under an exception in Sections 15 or 16 in the
ordinary course of business to carry out those purposes.
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(b) Example.
If a licensee discloses nonpublic personal financial information
under this section to a financial institution with which the licensee
performs joint marketing, the licensee's contractual agreement with that
institution meets the requirements of Paragraph (1)(b) of this subsection
if it prohibits the institution from disclosing or using the nonpublic
personal financial information except as necessary to carry out the joint
marketing or under an exception in Sections 15 or 16 in the ordinary
course of business to carry out that joint marketing.
(2)
Service may include joint marketing.
The services a nonaffiliated third party performs for a licensee
under Subsection R590-206-14.(1) of this section may include marketing of
the licensee's own products or services or marketing of financial products
or services offered pursuant to joint agreements between the licensee and
one or more financial institutions.
(3) Definition
of "joint agreement." For purposes of this section, "joint agreement"
means a written contract pursuant |