State RegulationsAZ specificDifficulty 2/5
An Arizona insurer asks how to handle its customers' nonpublic personal financial information on an ongoing basis. Under A.R.S. 20-2121, Arizona's analogue to the federal Gramm-Leach-Bliley Act, which practice is required?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A.R.S. 20-2121 requires insurers to maintain safeguards for nonpublic personal financial information and to give customers notice of their privacy practices, consistent with the federal Gramm-Leach-Bliley framework. Ongoing protection and disclosure — not selective or destructive handling — is the compliance standard.
Why the other options are wrong
- B) Monitoring customers is not a privacy obligation and would itself intrude on customer privacy.
- C) Protection must cover all customer information, not just the files of customers who complain.
- D) Wholesale deletion of records is not required and would conflict with recordkeeping obligations.
Memory hook
Safeguard always, disclose the practice — GLBA's Arizona twin, A.R.S. 20-2121.