State RegulationsAZ specificDifficulty 2/5
An insurer plans to share its customers' nonpublic personal financial information with an outside marketing partner. Under A.R.S. 20-2121, Arizona's analogue to the federal Gramm-Leach-Bliley Act, the insurer must first:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
A.R.S. 20-2121, Arizona's analogue to the Gramm-Leach-Bliley privacy framework, requires an insurer to provide notice of its privacy practices and to honor consumers' opt-out rights before sharing nonpublic personal financial information with outside parties. Sharing without the required notice and opt-out opportunity violates the statute.
Why the other options are wrong
- A) The partner's corporate standing is irrelevant; the duties run to the customers whose data is shared.
- C) Newspaper publication is not the statutory notice mechanism and would itself breach the privacy duty.
- D) County recording has no role in the privacy-notice process.
Memory hook
Share data? Notice first, opt-out honored — that is A.R.S. 20-2121.