[§431:3A-402] Exceptions to notice and opt out requirements for disclosure of nonpublicpersonal financial information for processing and servicing transactions.  (a) The requirements for initial notice under section 431:3A-201, for the opt outin sections 431:3A-204 and 431:3A-301, and for service providers and jointmarketing in [section] 431:3A-401 shall not apply if the licensee disclosesnonpublic personal financial information as necessary to effect, administer, orenforce a transaction that a consumer requests or authorizes, or in connectionwith:

(1)  Servicing or processing an insurance product orservice that a consumer requests or authorizes;

(2)  Maintaining or servicing the consumer’s accountwith a licensee, or with another entity as part of a private label credit cardprogram or other extension of credit on behalf of the entity;

(3)  A proposed or actual securitization, secondarymarket sale including sales of servicing rights, or similar transaction relatedto a transaction of the consumer; or

(4)  Reinsurance, stop loss, or excess loss insurance.

(b)  Asused in this section, "necessary to effect, administer, or enforce atransaction" means that the disclosure is:

(1)  Required, or is one of the lawful orappropriate methods, to enforce the licensee’s rights or the rights of otherpersons engaged in carrying out the financial transaction or providing theproduct or service; or

(2)  Required, or is a usual, appropriate, oracceptable method:

(A)  Tocarry out the transaction or the product or service business of which thetransaction is a part, and to record, service, or maintain the consumer’saccount in the ordinary course of providing the insurance product or service;

(B)  Toadminister, service the benefits, or process the claims relating to thetransaction or the product or service business of which it is a part;

(C)  Toprovide a confirmation, statement, or other record of the transaction or toprovide information on the status or value of the insurance product, or toservice to the consumer or the consumer’s agent or broker;

(D)  Toaccrue or recognize incentives or bonuses associated with the transaction thatare provided by a licensee or any other party;

(E)  Tounderwrite insurance at the consumer’s request or for purposes, as they relateto the consumer's insurance, of account administration, reporting,investigating, or preventing fraud or material misrepresentation, processingpremium payments, processing insurance claims, administering insurance benefitsincluding utilization review activities, participating in research projects, oras otherwise required or specifically permitted by federal or state law; or

(F)  Inconnection with:

(i)  Theauthorization, settlement, billing, processing, clearing, transferring,reconciling, or collection of amounts charged, debited, or otherwise paid usinga debit, credit or other payment card, check, or account number, or by otherpayment means;

(ii)  Thetransfer of receivables, accounts, or interests therein; or

(iii)  Theaudit of debit, credit, or other payment information. [L 2001, c 220, pt of §1]