Section 4056.5 Of Division 1.4. California Financial Information Privacy Act From California Financial Code >> Division 1.4.
4056.5
. (a) The provisions of this division do not apply to any
person or entity that meets the requirements of paragraph (1) or (2)
below. However, when nonpublic personal information is being or will
be shared by a person or entity meeting the requirements of paragraph
(1) or (2) with an affiliate or nonaffiliated third party, this
division shall apply.
(1) The person or entity is licensed in one or both of the
following categories and is acting within the scope of the respective
license or certificate:
(A) As an insurance producer, licensed pursuant to Chapter 5
(commencing with Section 1621), Chapter 6 (commencing with Section
1760), or Chapter 8 (commencing with Section 1831) of Division 1 of
the Insurance Code, as a registered investment adviser pursuant to
Chapter 3 (commencing with Section 25230) of Part 3 of Division 1 of
Title 4 of the Corporations Code, or as an investment adviser
pursuant to Section 202(a)(11) of the federal Investment Advisers Act
of 1940.
(B) Is licensed to sell securities by the National Association of
Securities Dealers (NASD).
(2) The person or entity meets the requirements in paragraph (1)
and has a written contractual agreement with another person or entity
described in paragraph (1) and the contract clearly and explicitly
includes the following:
(A) The rights and obligations between the licensees arising out
of the business relationship relating to insurance or securities
transactions.
(B) An explicit limitation on the use of nonpublic personal
information about a consumer to transactions authorized by the
contract and permitted pursuant to this division.
(C) A requirement that transactions specified in the contract fall
within the scope of activities permitted by the licenses of the
parties.
(b) The restrictions on disclosure and use of nonpublic personal
information, and the requirement for notification and disclosure
provided in this division, shall not limit the ability of insurance
producers and brokers to respond to written or electronic, including
telephone, requests from consumers seeking price quotes on insurance
products and services or to obtain competitive quotes to renew an
existing insurance contract, provided that any nonpublic personal
information disclosed pursuant to this subdivision shall not be used
or disclosed except in the ordinary course of business in order to
obtain those quotes.
(c) (1) The disclosure or sharing of nonpublic personal
information from an insurer, as defined in Section 23 of the
Insurance Code, or its affiliates to an exclusive agent, defined for
purposes of this division as a licensed agent or broker pursuant to
Chapter 5 (commencing with Section 1621) of Part 2 of Division 1 of
the Insurance Code whose contractual or employment relationship
requires that the agent offer only the insurer's policies for sale or
financial products or services that meet the requirements of
paragraph (2) of subdivision (b) of Section 4053 and are authorized
by the insurer, or whose contractual or employment relationship with
an insurer gives the insurer the right of first refusal for all
policies of insurance by the agent, and who may not share nonpublic
personal information with any insurer other than the insurer with
whom the agent has a contractual or employment relationship as
described above, is not a violation of this division, provided that
the agent may not disclose nonpublic personal information to any
party except as permitted by this division. An insurer or its
affiliates do not disclose or share nonpublic personal information
with exclusive agents merely because information is maintained in
common information systems or databases, and exclusive agents of the
insurer or its affiliates have access to those common information
systems or databases, provided that where a consumer has exercised
his or her rights to prohibit disclosure pursuant to this division,
nonpublic personal information is not further disclosed or used by an
exclusive agent except as permitted by this division.
(2) Nothing in this subdivision is intended to affect the sharing
of information allowed in subdivision (a) or subdivision (b).