New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter XIX - Privacy Of Consumer Financial and health Information
Part 420 - Privacy Of Consumer Financial And Health Information
Exceptions to Limits on Disclosure of Financial Information
Section 420.13 - Exception to opt out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 420.13
Current through Register Vol. 46, No. 39, September 25, 2024
(a) General rule.
(1) The opt out requirements in sections
420.7 and 420.10 of this Part 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
420.4 of this Part; 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 section 420.14
or 420.15 of this Part in the
ordinary course of business to carry out those purposes.
(2) Example. If the 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
subparagraph (1)(ii) of this subdivision 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 section
420.14 or 420.15 of this Part in the
ordinary course of business to carry out that joint marketing.
(b) Service may include joint marketing. The services a nonaffiliated third party performs for a licensee under subdivision (a) 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.
(c) Definition of joint agreement. For purposes of this section, joint agreement means a written contract pursuant to which a licensee and one or more financial institutions jointly offer, endorse or sponsor a financial product or service.
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