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Can I use customer data for marketing purposes without violating privacy laws in Montana? What are the requirements?

Using Customer Data for Marketing Purposes in Montana

Based on the Montana Code, a licensee may not use or disclose personal information for a marketing purpose, except as permitted in MTCO 33-19-307. A licensee may use or disclose personal information that is reasonably necessary to enable the licensee to market insurance products or services, or financial products and services, to another licensee or an affiliate that is not a licensee, respectively. A licensee may also disclose personal information to a person contractually engaged to provide services for or on behalf of the licensee to market insurance or financial products or services if the person agrees in writing that the person will not use or further disclose information obtained or developed pursuant to the engagement except to carry out the limited purpose of the engagement.

A licensee may use or disclose personal information for purposes other than those specified above only with an individual’s written authorization as described in MTCO 33-19-306(2). The authorization must clearly and conspicuously state that the disclosed information is intended to be used for marketing purposes, specify each entity or type of entity to which the licensee intends to disclose the information, specify what information the licensee intends to disclose, and specify the type of marketing that the individual might receive pursuant to the disclosure.

Marketing and research surveys are allowed, but an insurance institution or insurance producer shall clearly specify the questions that are designed to obtain information from an individual in connection with an insurance transaction solely for marketing or research purposes [1.2].

If the customer data includes individually identifiable health information, the licensee must comply with the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) privacy and security regulations, 45 CFR, parts 160 and 164, standards for privacy of individually identifiable health information or security standards for the protection of electronic health information [1.3].

Before disclosing personal information or highly restricted personal information, the department shall require the requester to complete and submit an application, in a form prescribed by the department, identifying the requester and specifying the statutorily recognized uses for which the personal information or highly restricted personal information is being sought [2.2].

Criminal history record information may not be disseminated to agencies other than criminal justice agencies unless the information is disseminated with the consent or at the request of the individual about whom it relates according to procedures specified in 44-5-214 and 44-5-215 [6.1].

The department may not disclose personal information from a motor vehicle record unless the disclosure is permitted or required [2.4]. Upon application, proof of the identity of a person requesting a record, and payment of the fees required in 61-11-510, the department shall disclose personal information, excluding highly restricted personal information, from a motor vehicle record for use in implementing federal law and federal regulations regarding motor vehicle or driver safety and theft, motor vehicle emissions, motor vehicle product alterations, recalls, or advisories, performance monitoring of motor vehicles and dealers by motor vehicle manufacturers, and removal of nonowner records from the original owner records of motor vehicle manufacturers [2.6].

All agencies of the state which participate in marketing shall cooperate with and assist the department [4.2].

Therefore, a licensee may use or disclose customer data for marketing purposes only as permitted by the Montana Code and with the individual’s written authorization. The licensee must also adopt and maintain policies and procedures reasonably designed to ensure that third parties with whom the licensee contracts comply with the requirements of the Montana Code.

Source(s):
Jurisdiction

Montana