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. 12, March 20, 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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