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
Limits on Disclosure of Financial Information
Section 420.10 - Limits on disclosure of nonpublic personal financial information to nonaffiliated third parties
Universal Citation: 11 NY Comp Codes Rules and Regs ยง 420.10
Current through Register Vol. 46, No. 12, March 20, 2024
(a)
(1) Conditions for disclosure. Except as
otherwise authorized in this Part, a licensee may not, directly or through any
affiliate, disclose any nonpublic personal financial information about a
consumer to a nonaffiliated third party unless:
(i) the licensee has provided to the consumer
an initial notice as required under section
420.4
of this Part;
(ii) the licensee has
provided to the consumer an opt out notice as required in section
420.7
of this Part;
(iii) the licensee
has given the consumer a reasonable opportunity, before the licensee discloses
the information to the nonaffiliated third party, to opt out of the disclosure;
and
(iv) the consumer does not opt
out.
(2) Opt out
definition. Opt out means a direction by the consumer that the licensee not
disclose nonpublic personal financial information about that consumer to a
nonaffiliated third party, other than as permitted by section
420.13,
420.14
or
420.15
of this Part.
(3) Examples of
reasonable opportunity to opt out. A licensee provides a consumer with a
reasonable opportunity to opt out if:
(i) By
mail. The licensee mails the notices required in paragraph (1) of this
subdivision to the consumer and allows the consumer to opt out by mailing a
form, calling a toll free telephone number, or any other reasonable means
within 30 days from the date the licensee mailed the notices.
(ii) By electronic means. A customer opens an
on-line account with the licensee and agrees to receive the notices required in
paragraph (1) of this subdivision electronically, and the licensee allows the
customer to opt out by any reasonable means within 30 days after the date that
the customer acknowledges receipt of the notices in conjunction with opening
the account.
(iii) Isolated
transaction with consumer. For an isolated transaction, such as providing the
consumer with an insurance quote, a licensee provides the consumer with a
reasonable opportunity to opt out if the licensee provides the consumer the
notices required in paragraph (1) of this subdivision at the time of the
transaction and requests that the consumer decide, as a necessary part of the
transaction, whether to opt out before completing the transaction.
(b) Application of opt out to all consumers and all nonpublic personal financial information.
(1) A licensee shall comply with this
section, regardless of whether the licensee and the consumer have established a
customer relationship.
(2) Unless a
licensee complies with this section, the licensee may not, directly or through
any affiliate, disclose any nonpublic personal financial information about a
consumer that the licensee has collected, regardless of whether the licensee
collected it before or after receiving the direction to opt out from the
consumer.
(c) Partial opt out. A licensee may allow a consumer to select certain nonpublic personal financial information or certain nonaffiliated third parties with respect to which the consumer wishes to opt out.
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