State RegulationsNC specificDifficulty 1/5
Under North Carolina's Insurance Information and Privacy Protection Act, an insurer wants to disclose a customer's personal information to a third party. Which principle applies?
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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, personal information collected by an insurer is protected: disclosure to third parties generally requires the individual's written authorization, with the statute permitting only limited exceptions such as those needed for ordinary business functions or as otherwise allowed by law. The Act also gives individuals rights of access and correction regarding their own information.
Why the other options are wrong
- A) Free sharing without the customer's knowledge is exactly what the Act forbids; authorization or a statutory exception is required.
- C) The Act relies on customer authorization and statutory exceptions, not on court orders, which are unnecessary for routine disclosures.
- D) The privacy protections reach insurance personal information generally, including health-related information held by insurers.
Memory hook
Privacy Act: your paper or a legal exception before any disclosure.