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

   2. (2) used in connection with

      1. (A) servicing or processing an insurance product or service that a consumer requests or authorizes;
      2. (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;
      3. (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;
      4. (D) reinsurance, stop-loss insurance, or excess loss insurance; or
      5. (E) soliciting insurance quotes on behalf of a consumer from an insurance producer.

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

   1. (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. (2) required in order to

      1. (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;
      2. (B) administer or service benefits or claims relating to a transaction or a product or service business of which the transaction is a part;
      3. (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;
      4. (D) accrue or recognize incentives or bonuses associated with the transaction that are provided by a licensee or other person;

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

         1. (i) account administration;
         2. (ii) reporting;
         3. (iii) investigating or preventing fraud or material misrepresentation;
         4. (iv) processing premium payments;
         5. (v) processing insurance claims;
         6. (vi) administering insurance benefits, including utilization review activities;
         7. (vii) participating in research projects;
         8. (viii) as required or specifically allowed by federal or state law; or

   3. (3) made in connection with

      1. (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;
      2. (B) the transfer of receivables, accounts, or interest in the receivables or accounts; or
      3. (C) the audit of debit, credit, or other payment information.

(Eff. 1/1/2005, Register 172)