R590-206-16. Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic Personal Financial Information for Processing and Servicing Transactions

(1) The initial notice requirements under Subsection R590-206-5(1)(b), the opt out requirements under Sections R590-206-8 and R590-206-12, and the service provider and joint marketing requirements under Section R590-206-15 do not apply if a licensee discloses nonpublic personal financial information necessary to cause, administer, or enforce a transaction that a consumer requests or authorizes, or is in connection with: (a) servicing or processing an insurance product or service requested or authorized by a consumer; (b) maintaining or servicing a consumer's account with a licensee or with another entity as part of a private label credit card program or other extension of credit; (c) a proposed or actual securitization, secondary market sale, including sales of servicing rights, or a similar transaction; or (d) reinsurance or stop loss insurance. (2) A notice that is necessary to cause, administer, or enforce a transaction includes a disclosure that: (a) is lawful or appropriate to enforce a licensee's rights or the rights of another person engaged in carrying out the financial transaction or providing the product or service; or (b) is a usual, appropriate, or acceptable method: (i) to carry out a transaction or a product or service business of which the transaction is a part, and record, service, or maintain the consumer's account in the ordinary course of providing the insurance product or service; (ii) to administer or service benefits or claims relating to a transaction or a product or service business; (iii) to provide a confirmation, a statement, or other record of a transaction, or information on the status or value of an insurance product or service to the consumer or the licensee; (iv) to accrue or recognize an incentive or bonus associated with a transaction that is provided by a licensee or any other party; (v) to underwrite insurance at the consumer's request or the following purposes: (A) account administration; (B) reporting; (C) investigating or preventing fraud or material misrepresentation; (D) processing premium payments; (E) processing insurance claims; (F) administering insurance benefits, including utilization review activities; and (G) participating in research projects; or (vi) in connection with: (A) authorizing, settling, billing, processing, clearing, transferring, reconciling, or collecting amounts charged, debited, or otherwise paid using a debit, credit, or other payment card, check, account number, or by other payment means; (B) transferring receivables, accounts, or interest; or (C) auditing debit, credit, or other payment information.