NAC679B.870. Exceptions to opt-out requirements for disclosure of information for service providers and joint marketing.

     1. The opt-out requirements in NAC 679B.856 and 679B.864 do not apply when a licensee provides nonpublic personal financial information to a nonaffiliated third party to perform services for the licensee or functions on behalf of the licensee, if the licensee:

     (a) Provides the initial notice in accordance with NAC 679B.842; and

     (b) Enters into a joint agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which the licensee disclosed the information, including use pursuant to an exception in NAC 679B.872 or 679B.874 in the ordinary course of business to carry out those purposes.

     2. If a licensee discloses nonpublic personal financial information pursuant to this section to a financial institution with which the licensee performs joint marketing, the joint agreement of the licensee with the institution satisfies the requirements of subsection 1 if the joint agreement prohibits the institution from disclosing or using the nonpublic personal financial information other than disclosure of information:

     (a) Necessary to carry out joint marketing; or

     (b) Pursuant to an exception in NAC 679B.872 or 679B.874, in the ordinary course of business to carry out joint marketing.

     3. The services a nonaffiliated third party performs for a licensee pursuant to subsection 1 of this section may include marketing of:

     (a) The products or services of the licensee; or

     (b) Financial products or services offered pursuant to a joint agreement between the licensee and one or more financial institutions.

     4. For the purposes of this section:

     (a) “Financial product or service” means any product or service that a financial holding company could offer by engaging in an activity that is financial in nature or incidental to such a financial activity pursuant to 12 U.S.C. § 1843(k) of the Bank Holding Company Act of 1956. The term includes an evaluation or brokerage of information that a financial institution collects in connection with a request or an application from a consumer for a financial product or service.

     (b) “Joint agreement” means a written contract pursuant to which a licensee and one or more financial institutions jointly offer, endorse or sponsor a financial product or service.

     (Added to NAC by Comm’r of Insurance by R130-01, eff. 12-17-2002)