State RegulationsVA specificDifficulty 1/5
Under Va. Code § 38.2-604, an insurer must provide individuals with a notice of its information practices. What does this notice accomplish?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Va. Code § 38.2-604 requires insurers to give individuals a notice of information practices — a plain-language description of how the insurer gathers personal information in the insurance relationship, how it uses that information, when it may be disclosed, and what rights the individual has regarding the information held about him. The notice exists to make the insurer's data practices transparent rather than hidden inside the file. It is a disclosure duty; it is not a substitute for the separate limits on actual disclosure.
Why the other options are wrong
- A) The notice does not certify a record of perfect secrecy; it describes the practices that actually exist, including permissible sharing.
- B) A notice is not an authorization; the disclosure rules operate separately, and the notice cannot waive the individual's protections.
- D) Employee access rosters are not the subject of the notice; the duty concerns the insurer's information practices and the individual's rights.
Memory hook
The notice is the insurer's data map — what it collects, how it's used, and your rights.