Current through Supplement No. 394, October, 2024
1.
a. Form
of notice. If a licensee is required to provide notice under subsection 1 of
section 45-14-01-11, it shall provide a
clear and conspicuous notice to each of its consumers that accurately explains
the right to authorize disclosures under that section. The notice shall state:
(1) That the licensee may only disclose
nonpublic personal financial information about its consumer to a nonaffiliated
third party if the licensee first obtains authorization from the consumer; and
(2) That the consumer has the
right to authorize or not to authorize that disclosure.
b. Examples: Adequate notice. A licensee
provides adequate notice that the consumer has the right to authorize or not to
authorize the disclosure of nonpublic personal financial information to a
nonaffiliated third party if the licensee:
(1) Identifies all of the categories of
nonpublic personal financial information that it will disclose if authorization
is obtained, and all of the categories of nonaffiliated third parties to which
the licensee discloses the information, as described in subdivisions b and c of
subsection 1 of section
45-14-01-07, and states that the
consumer has the right to authorize or not to authorize the disclosure of that
information; and
(2) Identifies
the insurance products or services that the consumer obtains from the licensee,
either singly or jointly, to which the authorization would apply.
2. Same form as initial
notice permitted. A licensee may provide the request for authorization together
with or on the same written or electronic form as the initial notice the
licensee provides in accordance with section
45-14-01-05.
3. Initial notice required when request for
authorization delivered subsequent to initial notice. If a licensee provides
the notice to consumers regarding request for authorization later than required
for the initial notice in accordance with section
45-14-01-05, the licensee shall
also include a copy of the initial notice with the notice regarding request for
authorization in writing or, if the consumer agrees, electronically.
4. Joint relationships:
a. If two or more consumers jointly obtain an
insurance product or service from a licensee, the licensee may provide a single
notice to the joint consumers. The licensee's notice shall explain how the
licensee will treat an authorization by a joint consumer, as explained in
subdivision b.
b. Example. If John
and Mary are both named policyholders on a homeowner's insurance policy issued
by a licensee and the licensee sends policy statements to John's address, the
licensee may:
(1) Send a single authorization
notice to John's address.
(2)
Permit John and Mary to make different authorizations, provided if John
provides authorization and Mary does not, the licensee may only disclose
nonpublic personal financial information about John, but not about Mary and not
about John and Mary jointly.
5. Duration of consumer's authorization. An
authorization must specify the length of time for which the authorization is
valid.
6. Delivery. When a
licensee is required to deliver a notice by this section, the licensee shall
deliver it according to section
45-14-01-10.
General Authority: NDCC 28-32-02
Law Implemented: NDCC
26.1-02-27
