Disclosure by life settlement provider, broker, insurance company, etc., of individual identification data of insured
[Text of section applicable as provided by 2012, 434, Sec. 4.]
Section 217. (a) Except as otherwise authorized or required by law, a life settlement provider, life settlement broker, insurance company, life insurance producer, information bureau, rating agency or company or any other person with actual knowledge of an insured’s identity shall not disclose the individual identification data of an insured or information that there is a reasonable basis to believe could be used to identify the insured or the insured’s financial or medical information to any other person unless the disclosure is:
(1) necessary to effect a life settlement contract between the owner and a life settlement provider and the owner and insured have provided prior written consent to the disclosure;
(2) necessary to effectuate the sale of a life settlement contract, or interests therein, as investments; provided, however, that the sale shall be conducted in accordance with applicable state and federal securities laws; and provided further, that the owner and the insured shall have both provided prior written consent to the disclosure;
(3) provided in response to an investigation or examination by the commissioner or any other governmental officer or agency;
(4) a term or condition to the transfer of a policy by 1 life settlement provider to another life settlement provider;
(5) necessary to allow the life settlement provider or life settlement broker or an authorized representative to make contacts for the purpose of determining health status; provided, however, that for the purposes of this section, the term “authorized representative” shall not include a person who has or may have a financial interest in the life settlement contract other than a licensed life settlement provider, licensed life settlement broker, financing entity, related provider trust or special purpose entity; and provided further, that a life settlement provider or life settlement broker shall require its authorized representative to agree in writing to adhere to the privacy provisions of this section; or
(6) required to purchase stop loss coverage.
(b) Private information solicited or obtained in connection with a proposed or actual life settlement contract shall be subject to the provisions applicable to financial institutions under the Gramm Leach Bliley Act, P.L. 106-102 (1999), and all other state and federal laws relating to the confidentiality of nonpublic personal information.