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Can I skip obtaining consent to sell personal information in North Dakota? What are the requirements?

Based on the documents provided, obtaining consent is generally required for the disclosure of nonpublic personal financial information in North Dakota. However, there are some exceptions to this requirement.

According to NDCC Section 6-08.1-04, a valid consent must be in writing and signed by the customer. In consenting to disclosure of customer information, a customer may specify the time during which such consent will operate, the customer information to be disclosed, and the persons, governmental agencies, or law enforcement agencies to which disclosure may be made.

NDAC Section 45-14-01-16 provides several exceptions to the notice and authorization requirements for disclosure of nonpublic personal financial information. 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.

Limits on Redisclosure and Reuse

NDAC Section 45-14-01-12 provides limits on redisclosure and reuse of nonpublic personal financial information. If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution under an exception, the licensee’s disclosure and use of that information is limited. The licensee may disclose the information to the affiliates of the financial institution from which the licensee received the information, to its affiliates, but the licensee’s affiliates may, in turn, disclose and use the information only to the extent that the licensee may disclose and use the information, and pursuant to an exception in section 45-14-01-15 or 45-14-01-16, in the ordinary course of business to carry out the activity covered by the exception under which the licensee received the information.

Joint Marketing Agreements

According to NDCC Section 6-08.1-09, a financial institution must have a customer’s consent before the financial institution may disclose the customer’s information to a nonaffiliated third party under a joint marketing agreement as provided under section 502(b)(2) of the federal Financial Services Modernization Act of 1999 [Pub. L. 106-102; 113 Stat. 1437; 15 U.S.C. 6802(b)(2)].

Other Exceptions

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. NDAC Section 45-14-01-17 provides an exception to the authorization requirements for disclosure of nonpublic personal health information for certain insurance functions.

Conclusion

Based on the documents provided, obtaining consent is generally required for the disclosure of nonpublic personal financial information in North Dakota. However, there are several exceptions to this requirement. It is important to review the specific requirements and exceptions outlined in the relevant statutes and regulations to ensure compliance.

Jurisdiction

North Dakota