3 AAC 26.665. Exceptions to notice and opt out requirements for disclosure of nonpublic personal financial information for processing and servicing transactions

(a) A licensee is not subject to the requirements for initial notice in 3 AAC 26.610(a) (2), the opt out requirements in 3 AAC 26.625 and 3 AAC 26.645, or the requirements in 3 AAC 26.660 if the licensee discloses nonpublic personal financial information to a nonaffiliated third party and the information is

(1) necessary to effect, administer, or enforce a transaction that a consumer requests or authorizes; or

(2) used in connection with

(A) servicing or processing an insurance product or service that a consumer requests or authorizes;

(B) maintaining or servicing a consumer's account with the licensee or with another entity as part of a private label credit card program or other extension of credit on behalf of the entity;

(C) a proposed or actual securitization, secondary market sale including the sale of servicing rights, or similar transaction related to a transaction of a consumer;

(D) reinsurance, stop-loss insurance, or excess loss insurance; or

(E) soliciting insurance quotes on behalf of a consumer from an insurance producer.

(b) For purposes of this section, a disclosure of information is necessary to effect, administer, or enforce a transaction if the disclosure is

(1) required in order to enforce a licensee's rights or the rights of another person engaged in carrying out the financial transaction or providing the product or service;

(2) required in order to

(A) carry out a transaction or service business of which the transaction is a part, and to record, service, or maintain the consumer's account in the ordinary course of providing an insurance product or service;

(B) administer or service benefits or claims relating to a transaction or a product or service business of which the transaction is a part;

(C) provide a confirmation, statement, or other record of a transaction or information on the status or value of an insurance product or service to the consumer or the consumer's insurance producer;

(D) accrue or recognize incentives or bonuses associated with the transaction that are provided by a licensee or other person;

(E) underwrite insurance at the consumer's request or for the following purposes in relation to a consumer's insurance:

(i) account administration;

(ii) reporting;

(iii) investigating or preventing fraud or material misrepresentation;

(iv) processing premium payments;

(v) processing insurance claims;

(vi) administering insurance benefits, including utilization review activities;

(vii) participating in research projects;

(ix) as required or specifically allowed by federal or state law; or

(3) made in connection with

(A) the authorization, settlement, billing, processing, clearing, transferring, reconciling, or collection of amounts charged, debited, or otherwise paid by using a debit, credit, or other payment card, check or account number, or other means of payment;

(B) the transfer of receivables, accounts, or interest in the receivables or accounts; or

History: Eff. 1/1/2005, Register 172

Authority: AS 21.06.090

AS 21.36.162

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