NIPR Terms

“NIPR Products” means:

• Producer database detail report
• Appointments and terminations
• Non-resident licensing
• Non-resident licensing renewals
• Company appointment report
• Company specialized report
• Alerts
• Contact change request
• Resident licensing
• Resident licensing renewals
• Other products as they are made available to customer

NIPR owns, maintains and operates a proprietary database containing licensing and regulatory information on insurance companies and insurance producers (referred to herein as the “Producer Database” or “PDB”) and the applications and services used to perform a business function or process on behalf of the insurance industry including, but not limited to: Appointments and Terminations, and Billing/Credit Card/Electronic Funds Transfers (EFT) (collectively referred to herein as the “NIPR Gateway”). For purposes of this Agreement, “NIPR Requirements” means the NIPR Transaction Layout Document, the Gateway Services Document and PDB XML Documents and the Producer Database, the NIPR Gateway, the NIPR Transaction Layout Documents, the NIPR Requirements, NIPR Marks and NIPR Products, together with any modifications, additions, enhancements or updates to any of the foregoing and any new property or products developed by or for NIPR, are collectively referred to as “NIPR Property.

Customer agrees to the following pass-through terms and conditions required by NIPR: (i) neither AgentSync nor NIPR make any representation or warranty with respect to the NIPR Products or the completeness or accuracy of the data in the NIPR Products; (ii) all warranties which extend beyond the description of the NIPR Products are expressly disclaimed, including without limitation, the implied warranties of merchantability and fitness for a particular purpose; (iii) Customer shall not, and shall not have the right to, directly or indirectly offer, sell, make available or otherwise distribute all or any portion of the information from the NIPR Property to any person, entity or organization whatsoever, provided however, that such information may be used by a majority owned subsidiary of Customer, or an agent, consultant or contractor of Customer, but only to the extent necessary to allow such subsidiary, agent, consultant or contractor to directly perform services on behalf of Customer which the Customer has the right to perform itself using such information and only if such subsidiary, agent, consultant or contractor represents and warrants to the Customer that such information shall not be used for any other purpose; and (iv) the language set forth in this Attachment 1.

Customer agrees to the following additional pass-through provisions required by NIPR: (i) Customer authorizes NIPR to obtain information from the Producer Database and provide it to AgentSync for purposes of completing a State DOI Transaction and if the State DOI Transaction is for a producer and the Customer is not the producer, the Customer represents it has obtained the written authorization of the producer to complete and submit a State DOI Transaction on the producer’s behalf; (ii) Customer acknowledges NIPR is not obligated to process a State DOI Transaction until it has received adequate funds to cover the applicable state insurance department fees and NIPR fees associated with processing the Customer’s State DOI Transaction; (iii) Customer acknowledges that all applicable state insurance department fees shall be nonrefundable except as provided for by applicable state law and all applicable NIPR fees shall be nonrefundable; and (iv) the language required by this Attachment 1 and Attachments 1A and 1B). For purposes of this Agreement “State DOI Transaction” shall include any type of application, request or other transaction submitted through the NIPR Gateway including without limitation producer appointments, terminations, report requests, etc.

Fair credit reporting act

Customer acknowledges NIPR considers the NIPR Producer Database to be subject to the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq. (“FCRA”), as amended. Customer shall comply with all applicable terms of the FCRA and shall request consumer reports from the NIPR Producer Database only if Customer has a permissible purpose for obtaining consumer reports, as defined by Section 604 of the FCRA. Customer acknowledges that at the time it requests information on an individual, AgentSync shall identify to NIPR the end user and purpose for the request of the information.

Customer acknowledges receipt of the Notice to Users of Consumer Reports, as prescribed by the Consumer Financial Protection Bureau (“CFPB”), attached hereto as Attachment 1A, and a Summary of Consumer Rights as prescribed by the CFPB, attached hereto as Attachment 1B, as may be updated from time to time by the FCRA.

Customer represents and warrants it is engaged in the business of insurance and has a permissible purpose for obtaining consumer reports, as defined by Section 604 of the Federal Fair Credit Reporting Act (15 U.S.C. § 1681b) as amended by the Consumer Credit Reporting Reform Act of 1996 or as may hereafter be amended, hereinafter called “FCRA”. Customer certifies it will comply with the provisions of the FCRA when requesting and using a consumer report from the Producer Database. A Notice to Users of Consumer Reports, as prescribed by the Consumer Financial Protection Bureau (“CFPB”) is attached hereto as Attachment 1A.

For purposes of this Agreement, the term “consumer report” and “Consumer Report for Employment Purposes” shall have the same meaning as given to these terms by the FCRA.

Customer agrees it will not request a Consumer Report for Employment Purposes unless: (a) a clear and conspicuous disclosure is first made in writing to the individual who is the subject of the consumer report before the report is obtained, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; the individual who is the subject of the consumer report has authorized in writing the procurement of the report; (c) Customer complies with the FCRA in the event it takes adverse action in whole or in part based upon the consumer report and (d) information from the consumer report will not be used in violation of any applicable federal or state equal opportunity law or regulation. For purposes of Customer’s notice obligations in regard to taking adverse action, a Summary of Consumer Rights, as prescribed by the CFPB, is herein attached as Attachment 1B and will be made available to Customer each time it signs off the Producer Database.

Customer agrees it will maintain copies of all written authorizations required herein for a minimum of three (3) years from the date of inquiry. Customer agrees it shall use a consumer report for a one-time use only, and will not disclose the information in the report to any third parties except those involved in the current decision affecting the individual who is the subject of the consumer report.

Customer agrees to indemnify, defend and hold harmless AgentSync and the National Insurance Producer Registry, a Missouri nonprofit corporation (a/k/a NIPR) from and against any liability or claim of any persons that is attributable to Customer’s failure to comply with the applicable provisions of the FCRA.

Attachment 1a

Notice to users of consumer reports: obligations of users under the FCRA

The Federal Fair Credit Reporting Act (FCRA) requires that this notice be provided to inform users of consumer reports of their legal obligations. State law may impose additional requirements. This first section of this summary sets forth the responsibilities imposed by the FCRA on all users of consumer reports. The subsequent sections discuss the duties of users of reports that contain specific types of information, or that are used for certain purposes, and the legal consequences of violations. The FCRA, 15 U.S.C. 1681-168lu, is set forth in full at the Federal Trade Commission’s Internet web site (http://www.ftc.gov).

Obligations of all users of consumer reports

A. Users Must Have a Permissible Purpose

a. As ordered by a court or a federal grand jury subpoena. Section 604(a)(l)

b. As instructed by the consumer in writing. Section 604(a)(2)

c. For the extension of credit as a result of an application from a consumer, or the review or collection of a consumer’s account. Section 604(a)(3)(A)

d. For employment purposes, including hiring and promotion decisions, where the consumer has given written permission. Sections 604(a)(3)(B) and 604(b)

e. For the underwriting of insurance as a result of an application from a consumer. Section 604(a)(3)(C)

f. When there is a legitimate business need, in connection with a business transaction that is initiated by the consumer. Section 604(a)(3)(F)(I)

g. To review a consumer’s account to determine whether the consumer continues to meet the terms of the account. Section 604(a)(3)(F)(ii)

h. To determine a consumer’s eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant’s financial responsibility or status. Section 604(a)(3)(D)

i. For use by a potential investor or servicer, or current insurer, in a valuation or assessment of the credit or prepayment risks associated with an existing credit obligation. Section 604(a)(3)(E)

j. For use by state and local officials in connection with the determination of child support payments, or modifications and enforcement thereof. Sections 604(a)(4) and 604(a)(5)

In addition, creditors and insurers may obtain certain consumer report information for the purpose of making unsolicited offers of credit or insurance. The particular obligations of users of this “prescreened” information are described in Section V below.

B. Users Must Provide Certifications

Section 604(f) of the FCRA prohibits any person from obtaining a consumer report from a consumer reporting agency (CRA) unless the person has certified to the CRA (by a general or specific certification, as appropriate) the permissible purpose(s) for which the report is being obtained and certifies that the report will not be used for any other purpose.

C. Users Must Notify Consumers When Adverse Actions Are Taken

The term “adverse action” is defined very broadly by Section 603 of the FCRA. “Adverse actions” include all business, credit, and employment actions affecting consumers that can be considered to have a negative impact – such as unfavorably changing credit or contract terms or conditions, denying or canceling credit or insurance, offering credit on less favorable terms than requested, or denying employment or promotion.

D. Adverse Actions Based on Information Obtained From a CRA

If a user takes any type of adverse action that is based at least in part on information contained in a consumer report, the user is required by Section 615(a) of the FCRA to notify the consumer. The notification may be done in writing, orally, or by electronic means. It must include the following:

a. The name, address, and telephone number of the CRA (including a toll-free telephone number, if it is a nationwide CRA) that provided the report.

b. A statement that the CRA did not make the adverse decision and is not able to explain why the decision was made.

c. A statement setting forth the consumer’s right to obtain a free disclosure of the consumer’s file from the CRA if the consumer requests the report within 60 days.

d. A statement setting forth the consumer’s right to dispute directly with the CRA the accuracy or completeness of any information provided by the CRA.

E. Adverse Actions Based on Information Obtained From Third Parties Who Are Not Consumer Reporting Agencies

If a person denies (or increases the charge for) credit for personal, family, or household purposes based either wholly or partly upon information from a person other than a CRA, and the information is the type of consumer information covered by the FCRA, Section 615(b)(l) of the FCRA requires that the user clearly and accurately disclose to the consumer his or her right to obtain disclosure of the nature of the information that was relied upon by making a written request within 60 days of notification. The user must provide the disclosure within a reasonable period of time following the consumer’s written request.

F. Adverse Actions Based on Information Obtained From Affiliates

If a person takes an adverse action involving insurance, employment, or a credit transaction initiated by the consumer, based on information of the type covered by the FCRA, and this information was obtained from an entity affiliated with the user of the information by common ownership or control, Section 615(b)(2) requires the user to notify the consumer of the adverse action. The notification must inform the consumer that he or she may obtain a disclosure of the nature of the information relied upon by making a written request within 60 days of receiving the adverse action notice. If the consumer makes such a request, the user must disclose the nature of the information not later than 30 days after receiving the request. (Information that is obtained directly from an affiliated entity relating solely to its transactions or experiences with the consumer, and information from a consumer report obtained from an affiliate are not covered by Section 615(b)(2).)

G. Obligations of users when consumer reports are obtained for employment purposes

If information from a CRA is used for employment purposes, the user has specific duties, which are set forth in Section 604(b) of the FCRA. The user must:

• Make a clear and conspicuous written disclosure to the consumer before the report is obtained, in a document that consists solely of the disclosure, that a consumer report may be obtained.
• Obtain prior written authorization from the consumer.
• Certify to the CRA that the above steps have been followed, that the information being obtained will not be used in violation of any federal or state equal opportunity law or regulation, and that, if any adverse action is to be taken based on the consumer report, a copy of the report and a summary of the consumer’s rights will be provided to the consumer.

Before taking an adverse action, provide a copy of the report to the consumer as well as the summary of the consumer’s rights. (The user should receive this summary from the CRA, because Section 604(b)(l)(B) of the FCRA requires CRAs to provide a copy of the summary with each consumer report obtained for employment purposes.)

H. Obligations of users of investigative consumer reports

Investigative consumer reports are a special type of consumer report in which information about a consumer’s character, general reputation, personal characteristics, and mode of living is obtained through personal interviews. Consumers who are the subjects of such reports are given special rights under the FCRA. If a user intends to obtain an investigative consumer report, Section 606 of the FCRA requires the following:

a. The user must disclose to the consumer that an investigative consumer report may be obtained. This must be done in a written disclosure that is mailed, or otherwise delivered, to the consumer not later than three days after the date on which the report was first requested. The disclosure must include a statement informing the consumer of his or her right to request additional disclosures of the nature and scope of the investigation as described below, and must include the summary of consumer rights required by Section 609 of the FCRA. (The user should be able to obtain a copy of the notice of consumer rights from the CRA that provided the consumer report.)

b. The user must certify to the CRA that the disclosures set forth above have been made and that the user will make the disclosure described below.

c. Upon the written request of a consumer made within a reasonable period of time after the disclosures required above, the user must make a complete disclosure of the nature and scope of the investigation that was requested. This must be made in a written statement that is mailed, or otherwise delivered, to the consumer no later than five days after the date on which the request was received from the consumer or the report was first requested, whichever is later in time.

I. Obligations of users of consumer reports containing medical information

Section 604(g) of the FCRA prohibits consumer reporting agencies from providing consumer reports that contain medical information for employment purposes, or in connection with credit or insurance transactions, without the specific prior consent of the consumer who is the subject of the report. In the case of medical information being sought for employment purposes, the consumer must explicitly consent to the release of the medical information in addition to authorizing the obtaining of a consumer report generally.

J. Obligations of users of “prescreened” lists

The FCRA permits creditors and insurers to obtain limited consumer report information for use in connection with unsolicited offers of credit or insurance under certain circumstances. Sections 603(1), 604(c), 604(e), and 615(d). This practice is known as “prescreening” and typically involves obtaining a list of consumers from a CRA who meet certain pre­ established criteria. If any person intends to use prescreened lists, that person must (1) before the offer is made, establish the criteria that will be relied upon to make the offer and to grant credit or insurance, and (2) maintain such criteria on file for a three-year period beginning on the date on which the offer is made to each consumer. In addition, any user must provide with each written solicitation a clear and conspicuous statement that:

• Information contained in a consumer’s CRA file was used in connection with the transaction.
• The consumer received the offer because he or she satisfied the criteria for credit worthiness or insurability used to screen for the offer.
• Credit or insurance may not be extended if, after the consumer responds, it is determined that the consumer does not meet the criteria used for screening or any applicable criteria bearing on credit worthiness or insurability, or the consumer does not furnish required collateral.

The consumer may prohibit the use of information in his or her file in connection with future prescreened offers of credit or insurance by contacting the notification system established by the CRA that provided the report. This statement must include the address and toll-free telephone number of the appropriate notification system.

J. Obligations of resellers

Section 607(e) of the FCRA requires any person who obtains a consumer report for resale to take the following steps:

a. Disclose the identity of the end-user to the source CRA.

b. Identify to the source CRA each permissible purpose for which the report will be furnished to the end-user.

c. Establish and follow reasonable procedures to ensure that reports are resold only for permissible purposes, including procedures to obtain:

• the identity of all end-users;
•  certifications from all users of each purpose for which reports will be used; and
•  certifications that reports will not be used for any purpose other than the purpose(s) specified to the Reseller. Resellers must make reasonable efforts to verify this information before selling the report.

I. Liability for violations of the FCRA

Failure to comply with the FCRA can result in state or federal enforcement actions, as well as private lawsuits. Sections 616, 617, and 621. In addition, any person who knowingly and willfully obtains a consumer report under false pretenses may face criminal prosecution, Section 619.

Attachment 1b

Para información en español, visite www.consumerfinance.gov/learnmore o escribe a la
Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC 20552.

A Summary of Your Rights Under the Fair Credit Reporting Act

The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and
privacy of information in the files of consumer reporting agencies. There are many types of
consumer reporting agencies, including credit bureaus and specialty agencies (such as agencies
that sell information about check writing histories, medical records, and rental history records).
Here is a summary of your major rights under FCRA. For more information, including
information about additional rights, go to www.consumerfinance.gov/learnmore or write
to: Consumer Financial Protection Bureau, 1700 G Street NW, Washington, DC 20552.

• You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name, address, and phone number of the agency that provided the information.
  
• You have the right to know what is in your file. You may request and obtain all the information about you in the files of a consumer reporting agency (your “file disclosure”). You will be required to provide proper identification, which may include your Social Security number. In many cases, the disclosure will be free. You are entitled to a free file disclosure if:
  • a person has taken adverse action against you because of information in your credit report;
  • you are the victim of identity theft and place a fraud alert in your file;
  • your file contains inaccurate information as a result of fraud;
  • you are on public assistance;
  • you are unemployed but expect to apply for employment within 60 days.

In addition, all consumers are entitled to one free disclosure every 12 months upon request from each nationwide credit bureau and from nationwide specialty consumer reporting agencies. See www.consumerfinance.gov/learnmore for additional information.

• You have the right to ask for a credit score. Credit scores are numerical summaries of your credit-worthiness based on information from credit bureaus. You may request a credit score from consumer reporting agencies that create scores or distribute scores used in residential real property loans, but you will have to pay for it. In some mortgage transactions, you will receive credit score information for free from the mortgage lender.
  
• You have the right to dispute incomplete or inaccurate information. If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous. See www.consumerfinance.gov/learnmore for an explanation of dispute procedures.
  
• Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information. Inaccurate, incomplete, or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.
  
• Consumer reporting agencies may not report outdated negative information. In most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old.
  
• Access to your file is limited. A consumer reporting agency may provide information about you only to people with a valid need – usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.
  
• You must give your consent for reports to be provided to employers. A consumer reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer. Written consent generally is not required in the trucking industry. For more information, go to www.consumerfinance.gov/learnmore.
  
• You may limit “prescreened” offers of credit and insurance you get based on information in your credit report. Unsolicited “prescreened” offers for credit and insurance must include a toll-free phone number you can call if you choose to remove your name and address from the lists these offers are based on. You may opt out with the nationwide credit bureaus at 1-888-567-8688.
  
• The following FCRA right applies with respect to nationwide consumer reporting agencies:

CONSUMERS HAVE THE RIGHT TO OBTAIN A SECURITY FREEZE
You have a right to place a “security freeze” on your credit report, which will
prohibit a consumer reporting agency from releasing information in your credit
report without your express authorization. The security freeze is designed to prevent
credit, loans, and services from being approved in your name without your consent.
However, you should be aware that using a security freeze to take control over who gets
access to the personal and financial information in your credit report may delay, interfere
with, or prohibit the timely approval of any subsequent request or application you make
regarding a new loan, credit, mortgage, or any other account involving the extension of
credit.

As an alternative to a security freeze, you have the right to place an initial or extended
fraud alert on your credit file at no cost. An initial fraud alert is a 1-year alert that is placed on a consumer’s credit file. Upon seeing a fraud alert display on a consumer’s credit file, a business is required to take steps to verify the consumer’s identity before extending new credit. If you are a victim of identity theft, you are entitled to an extended fraud alert, which is a fraud alert lasting 7 years.

A security freeze does not apply to a person or entity, or its affiliates, or collection
agencies acting on behalf of the person or entity, with which you have an existing
account that requests information in your credit report for the purposes of reviewing or
collecting the account. Reviewing the account includes activities related to account
maintenance, monitoring, credit line increases, and account upgrades and enhancements.

• You may seek damages from violators. If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court.
  
• Identity theft victims and active duty military personnel have additional rights. For more information, visit www.consumerfinance.gov/learnmore.

States may enforce the FCRA, and many states have their own consumer reporting laws. In some cases, you may have more rights under state law. For more information, contact your state or local consumer protection agency or your state Attorney General. For information about your federal rights, contact:

Updated on 18 JAN, 2024