1. (a) Exercises appropriate due diligence in selecting its service providers; and
2. (b) Requires its service providers, by contract, to implement appropriate measures designed to meet the objectives of this article, and, where indicated by the licensee's risk assessment, takes appropriate steps to confirm that its service providers have satisfied such obligations.

The licensee:

Note: Authority cited: Sections 791-791.27, Insurance Code; and 15 U.S.C. Sections 6801, 6805, 6807 and 6824. Reference: Section 791, Insurance Code; and 15 U.S.C. Section 6825.

History

1. New section filed 11-22-2002; operative 3-24-2003 (Register 2002, No. 47).