Texas Administrative Code
Title 28 - INSURANCE
Part 1 - TEXAS DEPARTMENT OF INSURANCE
Chapter 22 - PRIVACY
Subchapter A - INSURANCE CONSUMER FINANCIAL INFORMATION PRIVACY
Section 22.18 - Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic Personal Financial Information for Processing and Servicing Transactions
Universal Citation: 28 TX Admin Code § 22.18
Current through Reg. 50, No. 13; March 28, 2025
(a) If the covered entity discloses nonpublic personal financial information as necessary to effect, administer or enforce a transaction that a consumer requests or authorizes, or in connection with a transaction listed in subsection (b) of this section, the following do not apply:
(1) provision of the initial notice in
§
22.8(a)(2) of
this title (relating to Initial Privacy Notice),
(2) the opt out requirements in §
22.11 of this title (relating to
Form of Opt Out Notice to Consumers and Opt Out Methods) and the limitations on
disclosure in §
22.14 of this title (relating to
Limits on Disclosure of Nonpublic Personal Financial Information to
Nonaffiliated Third Parties), and
(3) the requirements pertaining to service
providers and joint marketing in §
22.17 of this title (relating to
Exception to Opt Out Requirements for Disclosure of Nonpublic Personal
Financial Information for Service Providers and Joint Marketing).
(b) Applicable transactions include:
(1) servicing or processing an
insurance product or service that a consumer requests or authorizes;
(2) maintaining or servicing the consumer's
account with a covered entity, or with another entity as part of a private
label credit card program or other extension of credit on behalf of such
entity;
(3) a proposed or actual
securitization, secondary market sale (including sales of servicing rights) or
similar transaction related to a transaction of the consumer; or
(4) reinsurance or stop loss or excess loss
insurance.
(c) A disclosure is necessary to effect, administer or enforce a transaction if it is:
(1) required, or is one of the lawful or
appropriate methods, to enforce the covered entity's rights or the rights of
other persons engaged in carrying out the financial transaction or providing
the product or service; or
(2)
required, or is a usual, appropriate or acceptable method:
(A) to carry out the transaction or the
product or service business of which the transaction is a part, and record,
service or maintain the consumer's account in the ordinary course of providing
the insurance product or service;
(B) to administer or service benefits or
claims relating to the transaction or the product or service business of which
it is a part;
(C) to provide a
confirmation, statement or other record of the transaction, or information on
the status or value of the insurance product or service to the consumer or the
consumer's agent or broker;
(D) to
accrue or recognize incentives or bonuses associated with the transaction that
are provided by a covered entity or any other party;
(E) to underwrite insurance at the consumer's
request or for any of the following purposes as they relate to a consumer's
insurance: account administration, reporting, investigating or preventing fraud
or material misrepresentation, processing premium payments, processing
insurance claims, administering insurance benefits (including utilization
review activities), participating in research projects or as otherwise required
or specifically permitted by federal or state law; or
(F) in connection with:
(i) the authorization, settlement, billing,
processing, clearing, transferring, reconciling or collection of amounts
charged, debited or otherwise paid using a debit, credit or other payment card,
check or account number, or by other payment means;
(ii) the transfer of receivables, accounts or
interests therein; or
(iii) the
audit of debit, credit or other payment information.
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