North Dakota Administrative Code
Title 45 - Insurance, Commissioner of
Article 45-14 - Consumer Privacy
Chapter 45-14-01 - Privacy of Consumer Financial and Health Information
Section 45-14-01-07 - Information to be included in privacy notices
Universal Citation: ND Admin Code ยง 45-14-01-07
Current through Supplement No. 394, October, 2024
1. General rule. The initial, annual, and revised privacy notices that a licensee provides under sections 45-14-01-05, 45-14-01-06, and 45-14-01-09 shall include each of the following items of information, in addition to any other information the licensee wishes to provide, that applies to the licensee and to the consumers to whom the licensee sends its privacy notice:
a. The categories of nonpublic personal
financial information that the licensee collects;
b. The categories of nonpublic personal
financial information that the licensee discloses;
c. The categories of affiliates and
nonaffiliated third parties to whom the licensee discloses nonpublic personal
financial information, other than those parties to whom the licensee discloses
information under sections
45-14-01-15 and
45-14-01-16;
d. The categories of nonpublic personal
financial information about the licensee's former customers that the licensee
discloses and the categories of affiliates and nonaffiliated third parties to
whom the licensee discloses nonpublic personal financial information about the
licensee's former customers, other than those parties to whom the licensee
discloses information under sections 45-14-01 -15 and
45-14-01-16;
e. If a licensee discloses nonpublic personal
financial information to a nonaffiliated third party under section
45-14-01-14, and no other
exception in sections
45-14-01-15 and
45-14-01-16 applies to that
disclosure, a separate description of the categories of information the
licensee discloses and the categories of third parties with whom the licensee
has contracted;
f. An explanation
of the consumer's right under subsection 1 of section
45-14-01-11 to authorize or not to
authorize the disclosure of nonpublic personal financial information to
nonaffiliated third parties, including the methods by which the consumer may
exercise that right at that time;
g. Any disclosures that the licensee makes
under section 603(d)(2)(A)(iii) of the federal Fair Credit Reporting Act [
15 U.S.C.
1681 a(d)(2)(A)(iii) ] (that is, notices
regarding the ability to opt out of disclosures of information among
affiliates);
h. The licensee's
policies and practices with respect to protecting the confidentiality and
security of nonpublic personal information; and
i. Any disclosure that the licensee makes
under subsection 2.
2. Description of parties subject to exceptions. If a licensee discloses nonpublic personal financial information as authorized under sections 45-14-01-15 and 45-14-01-16, the licensee is not required to list those exceptions in the initial or annual privacy notices required by sections 45-14-01-05 and 45-14-01-06. When describing the categories of parties to whom disclosure is made, the licensee is required to state only that it makes disclosures to other affiliated or nonaffiliated third parties, as applicable, as permitted by law.
3. Examples:
a. Categories of nonpublic personal financial
information that the licensee collects. A licensee satisfies the requirement to
categorize the nonpublic personal financial information it collects if the
licensee categorizes it according to the source of the information, as
applicable:
(1) Information from the
consumer;
(2) Information about
the consumer's transactions with the licensee or its affiliates;
(3) Information about the consumer's
transactions with nonaffiliated third parties; and
(4) Information from a consumer reporting
agency.
b. Categories
of nonpublic personal financial information a licensee discloses.
(1) A licensee satisfies the requirement to
categorize nonpublic personal financial information it discloses if the
licensee categorizes the information according to source, as described in
subdivision a, as applicable, and provides a few examples to illustrate the
types of information in each category. These might include:
(a) Information from the consumer, including
application information, such as assets and income and identifying information,
such as name, address, and social security number;
(b) Transaction information, such as
information about balances, payment history, and parties to the transaction;
and
(c) Information from consumer
reports, such as a consumer's creditworthiness and credit history.
(2) A licensee does not adequately
categorize the information that it discloses if the licensee uses only general
terms, such as transaction information about the consumer.
(3) If a licensee reserves the right to
disclose all of the nonpublic personal financial information about consumers
that it collects, the licensee may simply state that fact without describing
the categories or examples of nonpublic personal information that the licensee
discloses.
c.
Categories of affiliates and nonaffiliated third parties to whom the licensee
discloses.
(1) A licensee satisfies the
requirement to categorize the affiliates and nonaffiliated third parties to
which the licensee discloses nonpublic personal financial information about
consumers if the licensee identifies the types of businesses in which they
engage.
(2) Types of businesses
may be described by general terms only if the licensee uses a few illustrative
examples of significant lines of business. For example, a licensee may use the
term financial products or services if it includes appropriate examples of
significant lines of businesses, such as life insurer, automobile insurer,
consumer banking, or securities brokerage.
(3) A licensee also may categorize the
affiliates and nonaffiliated third parties to which it discloses nonpublic
personal financial information about consumers using more detailed categories.
d. Disclosures under
exception for service providers and joint marketers. If a licensee discloses
nonpublic personal financial information under the exception in section
45-14-01-14 to a nonaffiliated
third party to market products or services that it offers alone or jointly with
another financial institution, the licensee satisfies the disclosure
requirement of subdivision e of subsection 1 if it:
(1) Lists the categories of nonpublic
personal financial information it discloses, using the same categories and
examples the licensee used to meet the requirements of subdivision b of
subsection 1, as applicable; and
(2) States whether the third party is:
(a) A service provider that performs
marketing services on the licensee's behalf or on behalf of the licensee and
another financial institution; or
(b) A financial institution with whom the
licensee has a joint marketing agreement.
e. Simplified notices. If a licensee does not
disclose, and does not wish to reserve the right to disclose, nonpublic
personal financial information about customers or former customers to
affiliates or nonaffiliated third parties except as authorized under sections
45-14-01-15 and
45-14-01-16, the licensee may
simply state that fact, in addition to the information it shall provide under
subdivisions a, h, and i of subsection 1 and subsection 2.
f. Confidentiality and security. A licensee
describes its policies and practices with respect to protecting the
confidentiality and security of nonpublic personal financial information if it
does both of the following:
(1) Describes in
general terms who is authorized to have access to the information; and
(2) States whether the licensee
has security practices and procedures in place to ensure the confidentiality of
the information in accordance with the licensee's policy. The licensee is not
required to describe technical information about the safeguards it uses.
4. Short-form initial notice regarding request for authorization for noncustomers.
a. A licensee may
satisfy the initial notice requirements in subdivision b of subsection 1 of
section 45-14-01-05 and subsection 3 of
section 45-14-01-08 for a consumer who is
not a customer by providing a short-form initial notice at the same time as the
licensee delivers a notice regarding request for authorization as required in
section 45-14-01-08.
b. A short-form initial notice shall:
(1) Be clear and conspicuous;
(2) State that the licensee's privacy notice
is available upon request; and
(3)
Explain a reasonable means by which the consumer may obtain that notice.
c. The licensee shall
deliver its short-form initial notice according to section
45-14-01-10. The licensee is not
required to deliver its privacy notice with its short-form initial notice. The
licensee instead may simply provide the consumer a reasonable means to obtain
its privacy notice. If a consumer who receives the licensee's short-form notice
requests the licensee's privacy notice, the licensee shall deliver its privacy
notice according to section
45-14-01-10.
d. Examples of obtaining privacy notice. The
licensee provides a reasonable means by which a consumer may obtain a copy of
its privacy notice if the licensee:
(1)
Provides a toll-free telephone number that the consumer may call to request the
notice; or
(2) For a consumer who
conducts business in person at the licensee's office, maintains copies of the
notice on hand that the licensee provides to the consumer immediately upon
request.
5. Future disclosures. The licensee's notice may include:
a. Categories of nonpublic personal financial
information that the licensee reserves the right to disclose in the future, but
does not currently disclose; and
b. Categories of affiliates or nonaffiliated
third parties to whom the licensee reserves the right in the future to
disclose, but to whom the licensee does not currently disclose, nonpublic
personal financial information.
6. Sample clauses. Sample clauses illustrating some of the notice content required by this section are included in appendix A.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-02-27
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