State RegulationsNC specificDifficulty 1/5
An insurer in North Carolina collects personal information from an applicant and later wants to disclose it to a third party. Which body of law governs the insurer's handling of that personal information?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under the North Carolina Insurance Information and Privacy Protection Act, G.S. 58-39-5 through 58-39-120, insurers must follow rules on collecting, using, and disclosing personal information, including giving individuals rights of access and correction. The Act is the state-level privacy framework for insurance transactions.
Why the other options are wrong
- A) Federal health privacy law governs health information in specific contexts but does not displace North Carolina's insurance privacy statute.
- B) The false pretenses statute is a criminal fraud provision, not a privacy framework.
- D) The guaranty association article protects policyholders against insurer insolvency and has nothing to do with information privacy.
Memory hook
Insurance privacy lives in Article 39.