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Can I use third-party marketing automation tools that collect personal information in Montana? What are the requirements?

Using Third-Party Marketing Automation Tools in Montana

Based on the Montana Code Annotated, a licensee may use or disclose personal information that is reasonably necessary to enable the licensee to market insurance products or services. A licensee may use or disclose to another licensee personal information, excluding medical record information, that is reasonably necessary to enable the licensee to market financial products and services. A licensee that receives personal information under this section from a disclosing licensee may not further disclose the information or use the information for any purpose other than marketing insurance and financial products and services [1.1].

However, a requester who receives personal information or highly restricted personal information pursuant to 61-11-507, 61-11-508, 61-11-509, or 61-11-510 may not sell or disclose the information, except for a use that is specifically permitted in 61-11-507, 61-11-508, or 61-11-509. A requester who sells or discloses personal information or highly restricted personal information to a third party under this section shall create and maintain records for a period of not less than 5 years from the date of the sale or disclosure. The records must show the name, address, telephone number, and any other identifying information required by the department of the third party who bought or received the information and must document the permitted use for which the information was obtained [1.1][3.2].

It is important to note that 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]. Additionally, the department may not disclose personal information from a motor vehicle record unless the disclosure is permitted or required, as provided in 61-11-507, 61-11-508, or 61-11-509 [3.3].

Furthermore, each state agency that maintains the personal information of an individual shall develop procedures to protect the personal information while enabling the state agency to use the personal information as necessary for the performance of its duties under federal or state law. The procedures must include measures to eliminate the unnecessary use of personal information, identify the person or state agency authorized to have access to personal information, restrict access to personal information by unauthorized persons or state agencies, identify circumstances in which redaction of personal information is appropriate, dispose of documents that contain personal information in a manner consistent with other record retention requirements applicable to the state agency, eliminate the unnecessary storage of personal information on portable devices, and protect data containing personal information if that data is on a portable device [2.1].

In addition, a person may not act as a seller or telemarketer without first having registered with the department. The initial application for registration must be approved by the department prior to a seller or telemarketer offering or offering for sale consumer goods or services through any medium. A registered seller or telemarketer shall submit an application for renewal of registration annually to the department. The application for a certificate of registration or renewal must include but is not limited to the following information: the true name, current address, telephone number, and location of the seller or telemarketer, including each name under which the seller or telemarketer intends to engage in telemarketing; each occupation or business that the seller’s or telemarketer’s principal owner has engaged in for the 2 years immediately preceding the date of the application; whether any principal or manager has been convicted or pleaded guilty to or is being prosecuted by indictment for racketeering, violations of state or federal securities laws, or a theft offense; whether there has been entered against any principal or manager an injunction, a temporary restraining order, or a final judgment in any civil or administrative action involving fraud, theft, racketeering, embezzlement, fraudulent conversion, misappropriation of property, or violation of any federal or state consumer protection law. The information must include any pending litigation against the applicant; whether the seller, at any time during the previous 7 years, has filed for bankruptcy, been adjudged bankrupt, or been reorganized because of insolvency; the true name, current home address, date of birth, social security number, and all other names of the following: each telemarketer or other person to be employed by the seller; each person participating in or responsible for the management of the seller’s business; and each person, office manager, or supervisor principally responsible for the management of the seller’s business; the name, address, and account number of every institution where banking or any other monetary transactions are conducted by the seller; and a copy of all scripts, outlines, or presentation material that the seller will require a telemarketer to use when soliciting, as well as all sales information to be provided by the seller to a purchaser in connection with any solicitation [4.1].

Therefore, if the third-party marketing automation tool is a licensee and the personal information collected is reasonably necessary to enable the licensee to market insurance or financial products and services, then the tool may use or disclose the personal information. However, if the tool is a requester and receives personal information or highly restricted personal information pursuant to 61-11-507, 61-11-508, 61-11-509, or 61-11-510, then the tool may not sell or disclose the information, except for a use that is specifically permitted in 61-11-507, 61-11-508, or 61-11-509. The tool must also create and maintain records for a period of not less than 5 years from the date of the sale or disclosure. It is also important to 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. Additionally, the third-party marketing automation tool must comply with the procedures developed by state agencies to protect personal information and must register with the department if acting as a seller or telemarketer [1.1][2.1][1.2][3.3][4.1].

Note: The Montana Code Annotated does not provide specific requirements for third-party marketing automation tools that collect personal information.

Source(s):
Jurisdiction

Montana