Under California's Insurance Information and Privacy Protection Act (CIC Sections 791-791.29), an individual policyholder generally has the right to:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The California Insurance Information and Privacy Protection Act regulates the collection, use, and disclosure of personal information by insurers, agents, and other institutions subject to the Act. It gives individuals the right to request access to the personal information the institution has collected about them and to seek correction of inaccurate information. The Act also requires disclosure of information practices, limits disclosure to defined purposes, and generally requires written authorization for disclosures to third parties. It does not, however, authorize a consumer to block all collection of information reasonably needed for underwriting, or to bar disclosures made in the ordinary course of the insurer's business.
Why the other options are wrong
- B) Insurers may collect personal information that is reasonably necessary for underwriting and claims purposes. The consumer's right is to access and correct, not to withhold information without limit. The correct answer follows from the controlling authority, which this option does not follow.
- D) Disclosures to attorneys and others who need the information in connection with insurance transactions are among the permitted uses recognized by the Act. This common misconception is exactly what the governing rule rejects, so the option is incorrect.
- A) No statutory right requires an insurer to destroy policy files one year after issue. Retention obligations under law run in the opposite direction. This contradicts the governing rule explained above and therefore cannot be the correct answer.
Memory hook
Privacy Act gives you a mirror: you may see your file and correct it. It does not give you a veto.