1. (1) If a claim is made or action commenced arising out of an event described in section 38-13-1407 (1) relating to confidential information possessed by an administrator's agent, the administrator's agent shall indemnify, defend, and hold harmless a holder and the holder's affiliates, officers, directors, employees, and agents as to:

   1. (a) Any claim or action; and
   2. (b) A liability, obligation, loss, damage, cost, fee, penalty, fine, settlement, charge, or other expense, including reasonable attorney's fees and costs, established by the claim or action.

2. (2) The administrator shall require an administrator's agent that will receive confidential information required under this article 13 to maintain adequate insurance for indemnification obligations of the administrator's agent under subsection (1) of this section. The agent required to maintain the insurance shall provide evidence of the insurance to:

   1. (a) The administrator not less frequently than annually; and
   2. (b) The holder on commencement of an examination and annually thereafter until all confidential information is returned or destroyed under section 38-13-1406 (5).

Source: L. 2019: Entire article R&RE, (SB 19-088), ch. 110, p. 460, § 1, effective July 1, 2020.