N.M. Admin. Code § 13.1.3.28

Current through Register Vol. 35, No. 24, December 23, 2024

Section 13.1.3.28 - SAMPLE CLAUSES

Licensees, including a group of financial holding company affiliates that use a common privacy notice, may use the following sample clauses, if the clause is accurate for each institution that uses the notice. (Note that disclosure of certain information, such as assets, income and information from a consumer reporting agency, may give rise to obligations under the federal Fair Credit Reporting Act, such as a requirement to permit a consumer to opt out of disclosures to affiliates or designation as a consumer reporting agency if disclosures are made to nonaffiliated third parties.)

A. Categories of information a licensee collects (all institutions): A licensee may use this clause, as applicable, to meet the requirement of paragraph (1) of subsection A of 13.1.3.10 NMAC to describe the categories of nonpublic personal information the licensee collects. Sample Clause:

We collect nonpublic personal information about you from the following sources:

Information we receive from you on applications or other forms;

Information about your transactions with us, our affiliates or others; and

Information we receive from a consumer reporting agency.

B. Categories of information a licensee discloses with consumer authorization (institutions that disclose outside of the exceptions): A licensee may use one of these clauses, as applicable, to meet the requirement of paragraph (2) of subsection A of 13.1.3.10 NMAC to describe the categories of nonpublic personal information the licensee discloses with consumer authorization. The licensee may use these clauses if it discloses nonpublic personal information other than as permitted by the exceptions in 13.1.3.17 NMAC, 13.1.3.18 NMAC and 13.1.3.19 NMAC.

(1) Alternative 1:

If authorized by you, we may disclose the following kinds of nonpublic personal information about you:

Information we receive from you on applications or other forms, such as [provide illustrative examples, such as "your name, address, social security number, assets, income, and beneficiaries"];

Information about your transactions with us, our affiliates or others, such as [provide illustrative examples, such as "your policy coverage, premiums, and payment history"]; and

Information we receive from a consumer reporting agency, such as [provide illustrative examples, such as "your creditworthiness and credit history"].

(2) Alternative 2:

If authorized by you, we may disclose all of the information that we collect, as described [describe location in the notice, such as "above" or "below"].

C. Categories of information a licensee discloses and parties to whom the licensee discloses (institutions that do not disclose outside of the exceptions): A licensee may use this clause, as applicable, to meet the requirements of paragraphs (2), (3), and (4) of subsection A of 13.1.3.10 NMAC to describe the categories of nonpublic personal information about customers and former customers that the licensee discloses with consumer authorization and the categories of affiliates and nonaffiliated third parties to whom the licensee discloses with consumer authorization. A licensee may use this clause if the licensee does not disclose nonpublic personal information to any party, other than as permitted by the exceptions in 13.1.3.18 NMAC and 13.1.3.19 NMAC. Sample Clause:

We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law.

D. Categories of parties to whom a licensee discloses with consumer authorization (institutions that disclose outside of the exceptions): A licensee may use this clause, as applicable, to meet the requirement of paragraph (3) of subsection A of 13.1.3.10 NMAC to describe the categories of affiliates and nonaffiliated third parties to whom the licensee discloses nonpublic personal information with consumer authorization. This clause may be used if the licensee discloses nonpublic personal information with consumer authorization other than as permitted by the exceptions in 13.1.3.17 NMAC, 13.1.3.18 NMAC and 13.1.3.19 NMAC, as well as when permitted by the exceptions in 13.1.3.18 NMAC and 13.1.3.19 NMAC. Sample Clause:

If authorized by you, we may disclose nonpublic personal information about you to the following types of third parties:

Financial service providers, such as [provide illustrative examples, such as "life insurers, automobile insurers, mortgage bankers, securities broker-dealers, and insurance agents"];

Non-financial companies, such as [provide illustrative examples, such as "retailers, direct marketers, airlines, and publishers"]; and

Others, such as [provide illustrative examples, such as "non-profit organizations"].

We may also disclose nonpublic personal information about you to nonaffiliated third parties as permitted by law.

E. Service provider/joint marketing exception: A licensee may use one of these clauses, as applicable, to meet the requirements of paragraph (5) of subsection A of 13.1.3.10 NMAC related to the exception for service providers and joint marketers in 13.1.3.17 NMAC. If a licensee discloses nonpublic personal information under this exception, the licensee shall describe the categories of nonpublic personal information the licensee discloses and the categories of third parties with which the licensee has contracted.

(1) Alternative 1:

We may disclose the following nonpublic personal financial information to companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements:

Information we receive from you on applications or other forms, such as [provide illustrative examples, such as "your name, address, social security number, assets, income, and beneficiaries"];

Information about your transactions with us, our affiliates or others, such as [provide illustrative examples, such as "your policy coverage, premium, and payment history"]; and

Information we receive from a consumer reporting agency, such as [provide illustrative examples, such as "your creditworthiness and credit history"].

(2) Alternative 2:

We may disclose all of the nonpublic personal financial information we collect, as described [describe location in the notice, such as "above" or "below"] to companies that perform marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements.

F. Explanation of authorization right (institutions that disclose outside of the exceptions): A licensee may use this clause, as applicable, to meet the requirement of paragraph (6) of subsection A of 13.1.3.10 NMAC to provide an explanation of the consumer's right to authorize or not to authorize the disclosure of nonpublic personal information to nonaffiliated third parties, including the method(s) by which the consumer may exercise that right. The licensee may use this clause if the licensee requests authorization to disclose nonpublic personal information other than as permitted by the exceptions in 13.1.3.17 NMAC, 13.1.3.18 NMAC and 13.1.3.19 NMAC. Sample Clause:

We may only disclose nonpublic personal information if you sign and return the enclosed authorization. If you prefer that we not disclose nonpublic personal information about you, you should not return the enclosed authorization form.

G. Confidentiality and security (all institutions): A licensee may use this clause, as applicable, to meet the requirement of paragraph (8) of subsection A of 13.1.3.10 NMAC to describe its policies and practices with respect to protecting the confidentiality and security of nonpublic personal information. Sample Clause:

We restrict access to nonpublic personal information about you to [provide an appropriate description, such as "those employees who need to know that information to provide products or services to you"]. We maintain physical, electronic, and procedural safeguards that comply with federal rules to guard your nonpublic personal information.

N.M. Admin. Code § 13.1.3.28

13.1.3.28 NMAC - N, 2-25-02