<<Prev Rule

Texas Administrative Code

Next Rule>>
TITLE 28INSURANCE
PART 1TEXAS DEPARTMENT OF INSURANCE
CHAPTER 22PRIVACY
SUBCHAPTER AINSURANCE CONSUMER FINANCIAL INFORMATION PRIVACY
RULE §22.14Limits on Disclosure of Nonpublic Personal Financial Information to Nonaffiliated Third Parties

(a) Conditions for disclosure. Except as otherwise authorized in this subchapter, a covered entity may not, directly or through any affiliate, disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party unless:

  (1) the covered entity has provided to the consumer an initial notice as required under §22.8 of this title (relating to Initial Privacy Notice);

  (2) the covered entity has provided to the consumer an opt out notice as required in §22.11 of this title (relating to Form of Opt Out Notice to Consumers and Opt Out Methods);

  (3) the covered entity has given the consumer a reasonable opportunity, before it discloses the information to the nonaffiliated third party, to opt out of the disclosure; and

  (4) the consumer does not opt out.

(b) Examples of reasonable opportunity to opt out. A covered entity provides a consumer with a reasonable opportunity to opt out if:

  (1) the covered entity mails the notices required in subsection (a) of this section to the consumer and allows the consumer to opt out by mailing a form, calling a toll-free telephone number or any other reasonable means within 30 days from the date the covered entity mailed the notices.

  (2) a customer opens an on-line account with a covered entity and agrees to receive the notices required in subsection (a) of this section electronically, and the covered entity allows the customer to opt out by any reasonable means within 30 days after the date that the customer acknowledges receipt of the notices in conjunction with opening the account.

  (3) for an isolated transaction such as providing the consumer with an insurance quote, a covered entity provides the consumer with a reasonable opportunity to opt out if the covered entity provides the notices required in subsection (a) of this section at the time of the transaction and requests that the consumer decide, as a necessary part of the transaction, whether to opt out before completing the transaction.

(c) Application of opt out to all consumers and all nonpublic personal financial information.

  (1) A covered entity shall comply with this section, regardless of whether the covered entity and the consumer have established a customer relationship.

  (2) Unless a covered entity complies with this section, the covered entity may not, directly or through any affiliate, disclose any nonpublic personal financial information about a consumer that the covered entity has collected, regardless of whether the covered entity collected it before or after receiving the direction to opt out from the consumer.

(d) Partial opt out. A covered entity may allow a consumer to select certain nonpublic personal financial information or certain nonaffiliated third parties with respect to which the consumer wishes to opt out.


Source Note: The provisions of this §22.14 adopted to be effective December 17, 2001, 26 TexReg 10316

Next Page Previous Page



Home TxReg TAC OM NewTac Public Footer Bar