An insurer has collected personal and medical information while underwriting a policy. Under New Jersey's insurance information privacy rules, what may the insurer do with that information?

Why C is correct

N.J.A.C. 11:2-22 treats personal information collected in the insurance transaction as confidential: the insurer may use and disclose it only for purposes the rules authorize — such as underwriting the policy, servicing the relationship, or handling claims — and not for unrelated commerce or casual sharing. The New Jersey Department of Banking and Insurance enforces the disclosure limits across the insurance business, protecting applicants and policyholders from having their health and personal facts turned into a commodity.

Why the other options are wrong

• A) Selling personal information to unrelated marketers is outside the authorized purposes and violates the confidentiality rules.
• B) A producer has no authority to broadcast an applicant's medical details to third parties; the rules bind everyone handling the information.
• D) Confidentiality is not line-specific; the privacy framework applies across insurance business, life and health alike.

Memory hook

Collected for the policy, used for the policy — personal data stays inside the transaction.