58-2-41. Promulgation of rules to protect privacy of personal nonpublic financial information--Applicability--Construction.

279 words·~1 min read·/sd/title-58/chapter-58-2/58-2-41

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The director shall promulgate rules pursuant to chapter 1-26 relating to the privacy of personal nonpublic financial information. The rules must be designed to provide privacy to the public of the personal nonpublic financial information that is shared or obtained in connection with insurance transactions. The director shall design the rules to protect the public's personal nonpublic financial information but also consider the impact of any rules on the cost and availability of insurance in this state.

In promulgating the rules required by this section the director shall give substantial consideration to the privacy standards contained in the NAIC Privacy of Consumer Financial and Health Information Regulation as in effect as of January 1, 2001, and otherwise design the rules to achieve uniformity, to the degree reasonably possible, in the standards for personal nonpublic financial information. The rules may include the following as they relate to financial privacy:

(1)Definition of terms;

(2)Permitting the disclosure and use of personal nonpublic financial information between affiliates;

(3)Opt out procedures for the disclosure and use of personal nonpublic financial information with nonaffiliates;

(4)Notice and disclosure requirements and formats;

(5)Limits on disclosure of personal nonpublic financial information;

(6)Limits on redisclosure and reuse of personal nonpublic financial information;

(7)Limits on sharing account number information for marketing purposes;

(8)Exceptions for opt out and notice requirements; and

(9)Nondiscrimination requirements as they relate to persons who opt out or who do not grant an authorization.

Nothing in this section applies to any rules that may be promulgated pursuant to § 58-2-40 . Nothing in this section may be construed to impair or conflict with the Fair Credit Reporting Act.