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TITLE 28INSURANCE
PART 1TEXAS DEPARTMENT OF INSURANCE
CHAPTER 22PRIVACY
SUBCHAPTER AINSURANCE CONSUMER FINANCIAL INFORMATION PRIVACY
RULE §22.17Exception to Opt Out Requirements for Disclosure of Nonpublic Personal Financial Information for Service Providers and Joint Marketing

(a) The opt out requirements in §22.11 of this title (relating to Form of Opt Out Notice to Consumers and Opt Out Methods) and §22.14 of this title (relating to Limits on Disclosure of Nonpublic Personal Financial Information to Nonaffiliated Third Parties) do not apply when a covered entity provides nonpublic personal financial information to a nonaffiliated third party to perform services for the covered entity or functions on the covered entity's behalf, if the covered entity:

  (1) provides the initial notice in accordance with §22.8 of this title (relating to Initial Privacy Notice); and

  (2) enters into a contractual agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which the covered entity disclosed the information, including use under an exception in §22.18 of this title (relating to Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic Personal Financial Information for Processing and Servicing Transactions) and §22.19 of this title (relating to Other Exceptions to Notice and Opt Out Requirements for Disclosure of Nonpublic Personal Financial Information) in the ordinary course of business to carry out those purposes.

(b) If a covered entity discloses nonpublic personal financial information under this section to a financial institution with which the covered entity performs joint marketing, the covered entity's contractual agreement with that institution meets the requirements of subsection (a)(2) of this section if it prohibits the institution from disclosing or using the nonpublic personal financial information except as necessary to carry out the joint marketing or under an exception set forth in §22.18 and §22.19 of this title in the ordinary course of business to carry out that joint marketing.

(c) The services a nonaffiliated third party performs for a covered entity under subsection (a) of this section may include marketing of the covered entity's own products or services or marketing of financial products or services offered pursuant to joint agreements between the covered entity and one or more financial institutions.

(d) For purposes of this section, "joint agreement" means a written contract pursuant to which a covered entity and one or more financial institutions jointly offer, endorse or sponsor a financial product or service.


Source Note: The provisions of this §22.17 adopted to be effective December 17, 2001, 26 TexReg 10316

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