Michigan Laws 500.535 – Applicability of opt out requirements in MCL 500.519 and 500.529; “joint agreement” defined
Current as of: 2023 | Check for updates
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(1) The opt out requirements in section 519 and 529 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 does both of the following:
(a) Provides the initial notice.
Terms Used In Michigan Laws 500.535
- Contract: A legal written agreement that becomes binding when signed.
- Initial notice: means the privacy notice required in section 507. See Michigan Laws 500.503
- Licensee: means a licensed insurer or producer, and other persons licensed or required to be licensed, authorized or required to be authorized, registered or required to be registered, or holding or required to hold a certificate of authority under this act. See Michigan Laws 500.503
- Nonaffiliated third party: means any person except a licensee's affiliate or a person employed jointly by a licensee and any company that is not the licensee's affiliate. See Michigan Laws 500.503
- Nonpublic personal financial information: means personally identifiable financial information and any list, description, or other grouping of consumers and publicly available information pertaining to them that is derived using any personally identifiable financial information that is not publicly available. See Michigan Laws 500.503
- 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 sections 535, 537, and 539. See Michigan Laws 500.503
(b) 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 537 or 539 in the ordinary course of business to carry out those purposes.
(2) The services a nonaffiliated third party performs for a licensee under subsection (1) may include marketing of the licensee’s own products or services or marketing of insurance products or services offered pursuant to joint agreements between the licensee and 1 or more financial institutions.
(3) As used in this section, “joint agreement” means a written contract pursuant to which a licensee and 1 or more financial institutions jointly offer, endorse, or sponsor a financial product or service.