State RegulationsVA specificDifficulty 3/5
Which of the following uses of information collected in connection with a Virginia insurance transaction violates the insurance privacy article?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The Virginia insurance information and privacy protection article (Va. Code § 38.2-604 et seq., including the disclosure restrictions at Va. Code § 38.2-608) permits information uses tied to the insurance relationship, regulatory examinations, and disclosures the individual has authorized. Selling the client list to an unaffiliated marketer serves none of those purposes and carries no authorization from the clients, so it violates the article. The Virginia Bureau of Insurance polices this boundary.
Why the other options are wrong
- A) Policy service notices about the client's own policy are uses tied to the insurance relationship and are permitted.
- B) Cooperation with a Bureau examination is a recognized regulatory purpose; the privacy article does not block it.
- D) Verification with a medical provider under the applicant's authorization is a disclosure the individual has permitted and is allowed.
Memory hook
Client data serves the client's policy, the Bureau, or an authorized purpose — never a marketer's list.