State RegulationsNC specificDifficulty 2/5
An insurer holding personal information collected during an insurance transaction wants to disclose it to a third party. Under the Insurance Information and Privacy Protection Act, when may it do so?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under Article 39 (G.S. 58-39-5 through 58-39-120), an insurance institution may disclose personal information when the individual has given authorization or when the disclosure fits one of the Act's enumerated exceptions. Individuals also hold rights to access and correct their records, so disclosure is conditioned and supervised rather than free or forbidden.
Why the other options are wrong
- A) Profitability is not a permissible basis; disclosure must fit the statutory authorization or an enumerated exception.
- B) Authorization or a statutory exception suffices; a court order is not the only route to lawful disclosure.
- D) The Act regulates and conditions disclosure; it does not impose an absolute ban on sharing insurance information.
Memory hook
Disclose with authorization or within an exception - never just for profit.