NAC679B.872. Exceptions to notice and opt-out requirements for disclosure of information for processing and servicing transactions.

     1. The requirements for initial notice pursuant to NAC 679B.842, the opt-out notice pursuant to NAC 679B.856 and 679B.864, and the requirements applicable to service providers and joint marketing in NAC 679B.870 do not apply:

     (a) If the licensee discloses nonpublic personal financial information necessary to effect, administer or enforce a transaction that a consumer requests or authorizes; or

     (b) In connection with:

          (1) Servicing or processing an insurance product or service that a consumer requests or authorizes;

          (2) Maintaining or servicing the account of a consumer with a licensee, or with another entity as part of a program involving a private label credit card or other extension of credit on behalf of such an entity;

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

          (4) Reinsurance, stop loss insurance or excess loss insurance; or

          (5) Informing a policyholder, or the producer or broker of a policyholder, regarding a claim asserted by or paid to a consumer pursuant to a policy, including the servicing or processing of such a claim.

     2. For the purposes of this section, “necessary to effect, administer or enforce a transaction” means that a disclosure is:

     (a) Required to enforce the rights of a licensee or the rights of other persons engaged in carrying out the financial transaction or providing the product or service;

     (b) One of the lawful or appropriate methods to enforce the rights of a licensee or the rights of other persons engaged in carrying out the financial transaction or providing the product or service; or

     (c) Required, or is a usual, appropriate or acceptable method:

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

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

          (3) 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 agent or producer of the consumer;

          (4) To accrue or recognize incentives or bonuses associated with the transaction that are provided by a licensee or any other party;

          (5) To underwrite insurance at the request of a consumer or for any of the following purposes as they relate to insurance of a consumer:

               (I) Account administration;

               (II) Reporting;

               (III) Investigating or preventing fraud;

               (IV) Investigating or preventing material misrepresentation;

               (V) Processing premium payments;

               (VI) Processing insurance claims; or

               (VII) Administering insurance benefits, including, without limitation, utilization review activities, participating in research projects, or as otherwise required or specifically permitted by federal or state law; or

          (6) 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.

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