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Can I collect financial information from participants in North Dakota? What are the requirements?

Requirements for Collecting Financial Information in North Dakota

Yes, you can collect financial information from participants in North Dakota, subject to certain requirements. To collect financial information from participants in North Dakota, you must comply with the notice and authorization requirements for disclosure of nonpublic personal financial information as outlined in NDAC Section 45-14-01-05, NDAC Section 45-14-01-08, and NDAC Section 45-14-01-11 [1.2][1.3][1.5]. These requirements apply unless an exception applies.

Exceptions to Notice and Authorization Requirements

There are several exceptions to the notice and authorization requirements for disclosure of nonpublic personal financial information, as outlined in NDAC Section 45-14-01-16 and NDAC Section 45-14-01-15 [1.2][1.3][1.5]. These exceptions include:

  • With the consent or at the direction of the consumer, provided that the consumer has not revoked the consent or direction
  • To protect the confidentiality or security of a licensee’s records pertaining to the consumer, service, product, or transaction
  • To protect against or prevent actual or potential fraud or unauthorized transactions
  • For required institutional risk control or for resolving consumer disputes or inquiries
  • To persons holding a legal or beneficial interest relating to the consumer
  • To persons acting in a fiduciary or representative capacity on behalf of the consumer
  • To provide information to insurance rate advisory organizations, guaranty funds or agencies, agencies that are rating a licensee, persons that are assessing the licensee’s compliance with industry standards, and the licensee’s attorneys, accountants, and auditors
  • To comply with federal, state, or local laws, rules, and other applicable legal requirements
  • To comply with a properly authorized civil, criminal, or regulatory investigation, or subpoena or summons by federal, state, or local authorities
  • To respond to judicial process or government regulatory authorities having jurisdiction over a licensee for examination, compliance, or other purposes as authorized by law
  • For purposes related to the replacement of a group benefit plan, a group health plan, a group welfare plan, or a workers’ compensation plan
  • Exceptions for processing transactions at consumer’s request, as outlined in NDAC Section 45-14-01-15

Exception to Authorization Requirements for Disclosure of Nonpublic Personal Financial Information for Service Providers and Joint Marketing

NDAC Section 45-14-01-14 provides an exception to the authorization requirements for disclosure of nonpublic personal financial information for service providers and joint marketing [1.2]. Under this exception, the notice and authorization requirements in sections 45-14-01-08 and 45-14-01-11 do not apply when a licensee provides nonpublic personal financial information to a nonaffiliated third party to perform services for the licensee or functions on the licensee’s behalf, if the licensee provides the initial notice in accordance with section 45-14-01-05 and 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 licensee disclosed the information, including use under an exception in section 45-14-01-15 or 45-14-01-16 in the ordinary course of business to carry out those purposes.

Conclusion

In summary, you can collect financial information from participants in North Dakota if you comply with the notice and authorization requirements for disclosure of nonpublic personal financial information, unless an exception applies. It is important to review the specific circumstances under which you are collecting financial information to determine if an exception applies.

Source(s):
Jurisdiction

North Dakota