State RegulationsNC specificDifficulty 2/5
Under North Carolina's Insurance Information and Privacy Protection Act (Article 39), an insurer that has collected a customer's personal information generally must:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the Insurance Information and Privacy Protection Act (G.S. 58-39-5 through 58-39-120), insurers that maintain personal information about individuals must follow fair-information practices: the individual may access the information and request correction or amendment, and disclosures are limited to those the Act permits. This protects privacy without forbidding ordinary business use of the data.
Why the other options are wrong
- A) The Act restricts disclosure; the information is not freely shareable with any producer or vendor.
- C) The Act does not require destruction of records once a policy is issued.
- D) The customer himself holds access rights under the Act; it is not a state-agency-only disclosure regime.
Memory hook
Privacy Act = access, amend, limited disclosure.