State RegulationsNC specificDifficulty 2/5
Under the North Carolina Insurance Information and Privacy Protection Act, an insurer may disclose a customer's personal information only in which circumstance?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The North Carolina Insurance Information and Privacy Protection Act, Article 39 (G.S. 58-39-5 through 58-39-120), governs the collection, use, and disclosure of personal information gathered in connection with insurance transactions. Disclosure requires the individual's authorization or must otherwise be permitted by law, and the Act's notice and authorization structure protects the customer's privacy interest throughout the relationship.
Why the other options are wrong
- B) The Act does not give affiliates a blanket marketing exemption; disclosure still requires authorization or another legal basis.
- C) Oral notice does not substitute for the statutory authorization and notice requirements of G.S. 58-39-5 through 58-39-120.
- D) The Act operates through authorization and legal permissions, not case-by-case advance approval by the Commissioner of Insurance.
Memory hook
Privacy Act: no disclosure without authorization or legal permission.