<html> <head> <title>Rule 20:06:45:10 Limits on disclosure of nonpublic personal financial information to nonaffiliated third parties.</title> <META NAME="Keywords" Content="Administrative Rules 20:06:45:10"> <META NAME="Description" Content="Administrative Rules 20:06:45:10 Limits on disclosure of nonpublic personal financial information to nonaffiliated third parties."> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 14 (filtered)"> <style> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; font-size:12.0pt; font-family:"Times New Roman","serif";} p.MsoFooter, li.MsoFooter, div.MsoFooter {margin:0in; margin-bottom:.0001pt; font-size:12.0pt; font-family:"Times New Roman","serif";} @page WordSection1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in;} div.WordSection1 {page:WordSection1;} --> </style> </head> <body lang=EN-US> <div class=WordSection1> <p class=MsoFooter style='text-align:justify'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><b><span style='font-weight:bold'>20:06:45</span></b><b><span style='font-weight:bold'>:10.&nbsp;&nbsp;Limits on disclosure of nonpublic personal financial information to nonaffiliated third parties.</span></b></font></p> <p class=MsoFooter style='margin-left:.75in;text-align:justify;text-indent: -.75in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:74.9pt;text-align:justify;text-indent: -74.9pt'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;(A)&nbsp;&nbsp;Conditions for disclosure. Except as otherwise authorized in this chapter, a licensee may not, directly or through any affiliate, disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party unless:</span></font></p> <p class=MsoFooter style='margin-left:.75in;text-align:justify;text-indent: -.75in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;The licensee has provided to the consumer an initial notice as required under &#167;&nbsp;20:06:45:04;</span></font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;The licensee has provided to the consumer an opt out notice as required in &#167;&nbsp;20:06:45:07;</span></font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;The licensee has given the consumer a reasonable opportunity, before it discloses the information to the nonaffiliated third party, to opt out of the disclosure; and</span></font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4)&nbsp;&nbsp;The consumer does not opt out.</span></font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:77.75pt;text-align:justify;text-indent: -77.75pt'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B)&nbsp;&nbsp;Opt out definition. Opt out means a direction by the consumer that the licensee not disclose nonpublic personal financial information about that consumer to a nonaffiliated third party, other than as permitted by &#167;&#167;&nbsp;20:06:45:13, 20:06:45:14, and 20:06:45:15.</span></font></p> <p class=MsoFooter style='margin-left:1.1in;text-align:justify;text-indent: -1.1in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:77.75pt;text-align:justify;text-indent: -77.75pt'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (C)&nbsp;&nbsp;Examples of reasonable opportunity to opt out. A licensee provides a consumer with a reasonable opportunity to opt out if:</span></font></p> <p class=MsoFooter style='margin-left:1.1in;text-align:justify;text-indent: -1.1in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;By mail. The licensee mails the notices required in subdivision 20:06:45:10(1)(A) to the consumer and allows the consumer to opt out by mailing a form, calling a toll-free telephone number, or any other reasonable means within 30 days from the date the licensee mailed the notices.</span></font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;By electronic means. A customer opens an on-line account with a licensee and agrees to receive the notices required in subdivision 20:06:45:10(1)(A) electronically, and the licensee allows the customer to opt out by any reasonable means within 30 days after the date that the customer acknowledges receipt of the notices in conjunction with opening the account.</span></font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;Isolated transaction with consumer. For an isolated transaction such as providing the consumer with an insurance quote, a licensee provides the consumer with a reasonable opportunity to opt out if the licensee provides the notices required in subdivision 20:06:45:10(1)(A) at the time of the transaction and requests that the consumer decide, as a necessary part of the transaction, whether to opt out before completing the transaction.</span></font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:.75in;text-align:justify;text-indent: -.75in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;Application of opt out to all consumers and all nonpublic personal financial information.</span></font></p> <p class=MsoFooter style='margin-left:1.4in;text-align:justify;text-indent: -1.4in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:1.1in;text-align:justify;text-indent: -1.1in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A)&nbsp;&nbsp;A licensee shall comply with this section, regardless of whether the licensee and the consumer have established a customer relationship.</span></font></p> <p class=MsoFooter style='margin-left:1.1in;text-align:justify;text-indent: -1.1in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:1.1in;text-align:justify;text-indent: -1.1in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B)&nbsp;&nbsp;Unless a licensee complies with this section, the licensee may not, directly or through any affiliate, disclose any nonpublic personal financial information about a consumer that the licensee has collected, regardless of whether the licensee collected it before or after receiving the direction to opt out from the consumer.</span></font></p> <p class=MsoFooter style='margin-left:1.1in;text-align:justify;text-indent: -1.1in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:.7in;text-align:justify;text-indent:-.7in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3)&nbsp;&nbsp;Partial opt out. A licensee may allow a consumer to select certain nonpublic personal financial information or certain nonaffiliated third parties with respect to which the consumer wishes to opt out.</span></font></p> <p class=MsoFooter style='margin-left:1.1in;text-align:justify;text-indent: -1.1in'><font size=3 face="Times New Roman">&nbsp;</font></p> <p class=MsoFooter style='margin-left:1.1in;text-align:justify;text-indent: -1.1in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><b><span style='font-weight:bold'>Source:</span></b> 28 SDR 15, effective July 1, 2001.</font></p> <p class=MsoFooter style='margin-left:1.1in;text-align:justify;text-indent: -1.1in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><b><span style='font-weight:bold'>General Authority:</span></b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-2-41">58-2-41.</A></font></p> <p class=MsoFooter style='margin-left:1.1in;text-align:justify;text-indent: -1.1in'><font size=3 face="Times New Roman"><span style='font-size:12.0pt'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><b><span style='font-weight:bold'>Law Implemented:</span></b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-2-41">58-2-41.</A></font></p> <p class=MsoFooter style='margin-left:1.1in;text-align:justify;text-indent: -1.1in'><font size=3 face="Times New Roman">&nbsp;</font></p> </div> </body> </html>