N.D. Admin. Code § 45-14-01-04
45-14-01-04. Definitions.
As used in this chapter, unless the context requires otherwise:
1. "Affiliate" means a company that controls, is controlled by, or is under common control with another company.
2. a. "Clear and conspicuous" means that a notice is reasonably understandable and designed to call attention to the nature and significance of the information in the notice.
b. Examples:
(1) Reasonably understandable. A licensee makes its notice reasonably understandable if it:
(a) Presents the information in the notice in clear, concise sentences, paragraphs, and sections;
(b) Uses short explanatory sentences or bullet lists whenever possible;
(b) Places a link on a screen that consumers frequently access, such as a page on which transactions are conducted, that connects directly to the notice and is labeled appropriately to convey the importance, nature, and relevance of the notice.3. 'Collect' means to obtain information that the licensee organizes or can retrieve by the name of an individual or by identifying number, symbol, or other identifying particular assigned to the individual, irrespective of the source of the underlying information.4. 'Commissioner' means the insurance commissioner of the state.5. 'Company' means a corporation, limited liability company, business trust, general or limited partnership, association, sole proprietorship, or similar organization.6. a. 'Consumer' means an individual who seeks to obtain, obtains, or has obtained an insurance product or service from a licensee that is to be used primarily for personal, family, or household purposes, and about whom the licensee has nonpublic personal information, or that individual's legal representative.b. Examples:- (1) An individual who provides nonpublic personal information to a licensee in connection with obtaining or seeking to obtain financial, investment, or economic advisory services relating to an insurance product or service is a consumer regardless of whether the licensee establishes an ongoing advisory relationship.
(2) An applicant for insurance prior to the inception of insurance coverage is a licensee's consumer.
(8) An individual is not a licensee's consumer solely because the individual has designated the licensee as trustee for a trust.7. 'Consumer reporting agency' has the same meaning as in section 603(f) of the federal Fair Credit Reporting Act [15 U.S.C. 1681a(f)].8. 'Control' means:
a. Ownership, control, or power to vote twenty-five percent or more of the outstanding shares of any class of voting security of the company, directly or indirectly, or acting through one or more other persons;
postal authorities as undeliverable and if subsequent attempts by the licensee to obtain a current valid address for the individual have been unsuccessful.
1. 11. a. 'Financial institution' means any institution the business of which is engaging in activities that are financial in nature or incidental to such financial activities as described in section 4(k) of the Bank Holding Company Act of 1956 [12 U.S.C. 1843(k)].
2. b. Financial institution does not include:
1. (1) Any person or entity with respect to any financial activity that is subject to the jurisdiction of the commodity futures trading commission under the Commodity Exchange Act [U.S.C. 1 et seq.];
2. (2) The federal agricultural mortgage corporation or any entity charged and operating under the Farm Credit Act of 1971 [12 U.S.C. 2001 et seq.]; or
3. (3) Institutions chartered by Congress specifically to engage in securitizations, secondary market sales, including sales of servicing rights, or similar transactions related to a transaction of a consumer, as long as the institutions do not sell or transfer nonpublic personal information to a nonaffiliated third party.
3. 12. a. 'Financial product or service' means a 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 under section 4(k) of the Bank Holding Company Act of 1956 [12 U.S.C. 1843(k)].
4. b. Financial service includes a financial institution's evaluation or brokerage of information that the financial institution collects in connection with a request or an application from a consumer for a financial product or service.
5. 13. 'Health care' means:
1. a. Preventive, diagnostic, therapeutic, rehabilitative, maintenance or palliative care, services, procedures, tests, or counseling that: 1. (1) Relates to the physical, mental, or behavioral condition of an individual; or 2. (2) Affects the structure or function of the human body or any part of the human body, including the banking of blood, sperm, organs, or any other tissue; or
2. b. Prescribing, dispensing, or furnishing to an individual drugs or biologicals, or medical devices or health care equipment and supplies.
6. 14. 'Health care provider' means a physician or other health care practitioner licensed, accredited, or certified to perform specified health services consistent with state law, or a health care facility.
7. 15. 'Health information' means any information or data except age or gender, whether oral or recorded in any form or medium, created by or derived from a health care provider or the consumer that relates to:
1. a. The past, present, or future physical, mental, or behavioral health or condition of an individual;
2. b. The provision of health care to an individual; or
3. c. Payment for the provision of health care to an individual.
16. a. 'Insurance product or service' means any product or service that is offered by a licensee pursuant to the insurance laws of this state.b. Insurance service includes a licensee's evaluation, brokerage, or distribution of information that the licensee collects in connection with a request or an application from a consumer for an insurance product or service.17. a. 'Licensee' means all licensed insurers, producers, and other persons licensed or required to be licensed, or authorized or required to be authorized, or registered or required to be registered pursuant to the insurance law of this state and health maintenance organizations holding a certificate of authority pursuant to North Dakota Century Code chapter 26.1-18.1. As used herein, the term 'licensee' does not include either of the following:1. (1) North Dakota life and health insurance guaranty association created pursuant to North Dakota Century Code chapter 26.1-38; or
2. (2) North Dakota insurance guaranty association created pursuant to North Dakota Century Code chapter 26.1-42.1.b. A licensee is not subject to the notice and authorization requirements for nonpublic personal financial information set forth in this chapter if the licensee is an employee, agent, or other representative of another licensee ('the principal') and:1. (1) The principal otherwise complies with, and provides the notices required by, the provisions of this chapter; and
2. (2) The licensee does not disclose any nonpublic personal information to any person other than the principal or its affiliates unless in a manner permitted by this chapter.c. (1) Subject to paragraph 2, 'licensee' also includes an unauthorized insurer that accepts business placed through a licensed excess lines broker in this state, but only in regard to the excess lines placements placed pursuant to North Dakota Century Code chapter 26.1-44.(2) An excess lines broker or excess lines insurer shall be deemed to be in compliance with the notice and authorization requirements for nonpublic personal financial information set forth in this rule provided:1. (a) The broker or insurer does not disclose nonpublic personal information of a consumer or a customer to nonaffiliated third parties for any purpose, including joint servicing or marketing under section 45-14-01-14, except as permitted by section 45-14-01-15 or 45-14-01-16; and
2. (b) The broker or insurer delivers a notice to the consumer at the time a customer relationship is established on which the following is printed in sixteen-point type:
'Neither the U.S. brokers that handled this insurance nor the insurers that have underwritten this insurance will disclose nonpublic personal information concerning the buyer to nonaffiliates of the brokers or insurers except as permitted by law.'
18. a. 'Nonaffiliated third party' means any person except:
(2) About a consumer resulting from a transaction involving an insurance product or service between a licensee and a consumer; or (3) The licensee otherwise obtains about a consumer in connection with providing an insurance product or service to that consumer.
b. Examples:
(1) Information included. Personally identifiable financial information includes: (a) Information a consumer provides to a licensee on an application to obtain an insurance product or service; (b) Account balance information and payment history; (c) The fact that an individual is or has been one of the licensee's customers or has obtained an insurance product or service from the licensee; (d) Any information about the licensee's consumer if it is disclosed in a manner that indicates that the individual is or has been the licensee's consumer; (e) Any information that a consumer provides to a licensee or that the licensee or its agent otherwise obtains in connection with collecting on a loan or servicing a loan; (f) Any information the licensee collects through an internet cookie, an information-collecting device from a web server; and (g) Information from a consumer report. (2) Information not included. Personally identifiable financial information does not include: (a) Health information; (b) A list of names and addresses of customers of an entity that is not a financial institution; and (c) Information that does not identify a consumer, such as aggregate information or blind data that does not contain personal identifiers such as account numbers, names, or addresses.
23. a. "Publicly available information" means any information that a licensee has a reasonable basis to believe is lawfully made available to the general public from: (1) Federal, state, or local government records; (2) Widely distributed media; or (3) Disclosures to the general public which are required to be made by federal, state, or local law. b. Reasonable basis. A licensee has a reasonable basis to believe that information is lawfully made available to the general public if the licensee has taken steps to determine: (1) That the information is of the type that is available to the general public; and (2) Whether an individual can direct that the information not be made available to the general public and, if so, that the licensee's consumer has not done so.
1. (1) Government records. Publicly available information in government records includes information in government real estate records and security interest filings.
2. (2) Widely distributed media. Publicly available information from widely distributed media includes information from a telephone book, a television or radio program, a newspaper, or a web site that is available to the general public on an unrestricted basis. A web site is not restricted merely because an internet service provider or a site operator requires a fee or a password, so long as access is available to the general public.
3. (3) Reasonable basis.
1. (a) A licensee has a reasonable basis to believe that mortgage information is lawfully made available to the general public if the licensee has determined that the information is of the type included on the public record in the jurisdiction where the mortgage would be recorded.
2. (b) A licensee has a reasonable basis to believe that an individual's telephone number is lawfully made available to the general public if the licensee has located the telephone number in the telephone book or the consumer has informed the licensee that the telephone number is not unlisted.
History: Effective December 1, 2001; amended effective November 1, 2004.
General Authority: NDCC 28-32-02
Law Implemented: NDCC 26.1-02-27