The North Carolina Department of Insurance receives a complaint that a Greensboro insurer sold policyholders' prescription drug histories to an unrelated marketing firm without the policyholders' knowledge. Which North Carolina law directly governs the insurer's collection, use, and disclosure of this kind of personal information?

Why B is correct

The collection, maintenance, use, and disclosure of consumers' personal and privileged insurance information in North Carolina is governed by the Insurance Information and Privacy Protection Act, Article 39 of Chapter 58 (G.S. 58-39-5 through 58-39-120). Selling prescription drug histories to an unrelated marketer without the individuals' authorization would violate that Act. The other statutes listed address unfair trade practices, required policy wording, and insurer insolvency — not privacy of consumer information.

Why the other options are wrong

• A: G.S. 58-63-15 targets unfair methods of competition and deceptive acts such as misrepresentation and defamation, not the handling of policyholders' private information.
• C: G.S. 58-51-15 prescribes standard provisions that must appear in individual accident and health policies, such as grace and proof-of-loss clauses; it does not regulate data handling.
• D: G.S. 58-62-21 protects policyholders when a member insurer becomes insolvent; it has no role in governing disclosure of health information.

Memory hook

Article 39 = the privacy article — 39 sounds like 'private.'