State RegulationsMA specificDifficulty 2/5
A Massachusetts insurer issues a notice of information practices under M.G.L. c. 175I, § 4 and collects personal information on a life applicant. Which handling of that information is consistent with Massachusetts law?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The Massachusetts Insurance Information and Privacy Protection Act, M.G.L. c. 175I, ties an insurer's handling of personal information to the practices it has disclosed. Using and disclosing information as described in the § 4 notice keeps the insurer within the statutory framework; undisclosed marketing sales and open disclosure to strangers do not. The notice is not paperwork — it defines the boundary the insurer must honor.
Why the other options are wrong
- A) Selling health details to an unrelated marketing firm for any purpose exceeds the disclosed insurance-transaction uses and violates the framework of M.G.L. c. 175I, § 4.
- B) Free disclosure to anyone who asks defeats the privacy protections of M.G.L. c. 175I; disclosure must follow the described practices.
- D) Handing underwriting files to any other insurer on request, without notice to the applicant, is not a use described in the § 4 notice and is not authorized.
Memory hook
Say what you do in the notice; then do only that.