1. (1) The initial notice requirements under Subsection R590-206-5(1)(b), the opt out requirements under Sections R590-206-8 and R590-206-12, and the service provider and joint marketing requirements under Section R590-206-15 do not apply if a licensee discloses nonpublic personal financial information necessary to cause, administer, or enforce a transaction that a consumer requests or authorizes, or is in connection with:

   1. (a) servicing or processing an insurance product or service requested or authorized by a consumer;
   2. (b) maintaining or servicing a consumer's account with a licensee or with another entity as part of a private label credit card program or other extension of credit;
   3. (c) a proposed or actual securitization, secondary market sale, including sales of servicing rights, or a similar transaction; or
   4. (d) reinsurance or stop loss insurance.

2. (2) A notice that is necessary to cause, administer, or enforce a transaction includes a disclosure that:

   1. (a) is lawful or appropriate 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; or

   2. (b) is a usual, appropriate, or acceptable method:

      1. (i) to carry out a transaction or a product or service business of which the transaction is a part, and record, service, or maintain the consumer's account in the ordinary course of providing the insurance product or service;
      2. (ii) to administer or service benefits or claims relating to a transaction or a product or service business;
      3. (iii) to provide a confirmation, a 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 licensee;
      4. (iv) to accrue or recognize an incentive or bonus associated with a transaction that is provided by a licensee or any other party;

      5. (v) to underwrite insurance at the consumer's request or the following purposes:

         1. (A) account administration;
         2. (B) reporting;
         3. (C) investigating or preventing fraud or material misrepresentation;
         4. (D) processing premium payments;
         5. (E) processing insurance claims;
         6. (F) administering insurance benefits, including utilization review activities; and
         7. (G) participating in research projects; or

      6. (vi) in connection with:

         1. (A) authorizing, settling, billing, processing, clearing, transferring, reconciling, or collecting amounts charged, debited, or otherwise paid using a debit, credit, or other payment card, check, account number, or by other payment means;
         2. (B) transferring receivables, accounts, or interest; or
         3. (C) auditing debit, credit, or other payment information.

KEY: insurance law

Date of Last Change: November 21, 2023

Notice of Continuation: May 19, 2026

Authorizing, and Implemented or Interpreted Law: 31A-2-201; 31A-23a-417; 15 U.S.C. 6801-6820