N.Y. Comp. Codes R. & Regs. tit. 11 § 420.14

Current through Register Vol. 46, No. 45, November 2, 2024

Section 420.14 - Exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information for processing and servicing transactions

(a) Exceptions for processing transactions at consumer's request. The requirements for initial notice to the consumer in section 420.4(a)(2) of this Part, and the opt out provisions in sections 420.7 and 420.10 of this Part and their application to service providers and joint marketing as described in section 420.13 of this Part, do not apply if the licensee discloses nonpublic personal financial information as necessary to effect, administer, or enforce a transaction that a consumer requests or authorizes, or in connection with:

(1) servicing or processing an insurance product or service that a consumer requests or authorizes;

(2) maintaining or servicing the consumer's account with the licensee, or with another entity as part of a private label credit card program or other extension of credit on behalf of such entity;

(3) a proposed or actual securitization, secondary market sale (including sales of servicing rights), or similar transaction related to a transaction of the consumer;

(4) reinsurance or stop loss or excess loss insurance; or

(5) the solicitation of insurance quotes on behalf of a consumer by an insurance agent or broker.

(b) Necessary to effect, administer, or enforce a transaction means that the disclosure is:

(1) required, or is one of the lawful or appropriate methods, to enforce the licensee's rights or the rights of other persons engaged in carrying out the financial transaction or providing the product or service; or

(2) required, or is a usual, appropriate, or acceptable method:

(i) to carry out the transaction or the 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 the transaction or the product or service business of which it is a part;

(iii) to provide a confirmation, statement or other record of the transaction, or information on the status or value of the insurance product or service to the consumer or the consumer's agent or broker;

(iv) to accrue or recognize incentives or bonuses associated with the transaction that are provided by a licensee or any other party;

(v) to underwrite insurance at the consumer's request or for reinsurance purposes, or for any of the following purposes as they relate to a consumer's insurance: account administration, reporting, investigating or, preventing fraud or material misrepresentation, processing premium payments, processing insurance claims, administering insurance benefits (including utilization review activities), participating in research projects or as otherwise required or specifically permitted by Federal or State law; or

(vi) in connection with:

(a) the authorization, settlement, billing, processing, clearing, transferring, reconciling or collection of amounts charged, debited, or otherwise paid using a debit, credit, or other payment card, check, or account number, or by other payment means;

(b) the transfer of receivables, accounts, or interests therein; or

(c) the audit of debit, credit, or other payment information.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 420.14