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33 <br />ensure that any agents and Subcontractors that assist Business Associate in <br />conducting Covered Electronic Transactions on behalf of Covered Entity <br />agree in writing to comply with the Standards for Electronic Transactions <br />Rule to the extent Required by Law. <br />E. Obligations and Rights of Covered Entity. <br />1. Notice of Privacy Practices. Covered Entity shall provide Business <br />Associate with the notice of privacy practices that Covered Entity produces <br />in accordance with 45 C.F.R. Section 164.520, as well as any changes to <br />such notice. <br />2. Requests by Covered Entity. Covered Entity shall not request or <br />direct Business Associate to use or disclose Protected Health Information in <br />any manner that would not be permissible under the Privacy Rule if done by <br />Covered Entity. This includes, but is not limited to, requests or directions <br />for disclosure of Protected Health Information to the Plan sponsor in a <br />capacity other than acting on behalf of the Plan as Covered Entity. To the <br />extent a dispute or difference of opinion exists between the Business <br />Associate and Covered Entity regarding whether a use or disclosure is <br />permissible, Business Associate may disclose the Protected Health <br />Information under objection pursuant to the specific, written direction of <br />Covered Entity. Any disclosures made pursuant to such specific, written <br />direction shall be subject to the indemnification provisions of this Business <br />Associate Agreement. <br />3. Changes in Permission. Covered Entity shall notify Business Associate <br />of any changes in, or revocation of, permission by an Individual to use or <br />disclose Protected Health Information, to the extent that such changes may <br />affect Business Associate’s use or disclosure of Protected Health Information. <br />4. Restrictions. Covered Entity shall notify Business Associate of any <br />restriction to the use or disclosure of Protected Health Information to which <br />Covered Entity has agreed in accordance with 45 C.F.R. Section 164.522, to <br />the extent that such restriction may affect Business Associate’s use or <br />disclosure of Protected Health Information. Such restrictions include, but are <br />not limited to, a Covered Individual’s request not to disclose Protected Health <br />Information for purposes of payment or health care operations where the <br />Protected Health Information relates solely to a health item or service for <br />which the health care provider has been paid in full out-of-pocket by, or on <br />behalf of, the Covered Individual. <br />5. Agreement Breaches by Business Associate. If Covered Entity <br />obtains knowledge of a pattern of activity or practice of Business Associate <br />that constitutes a material breach or violation of Business Associate’s