State RegulationsVA specificDifficulty 1/5
A Virginia producer wants to share an applicant's health information with a third-party marketing firm that is not involved in the applicant's coverage. What does Virginia's insurance privacy law require before the disclosure?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Virginia's insurance information and privacy protection article (Va. Code § 38.2-604 et seq.) restricts a licensee's disclosure of protected insurance information to other parties, and outside the statutory exceptions a disclosure requires the individual's authorization. Sharing health information with an unrelated marketing firm fits no exception, so the producer needs the applicant's written authorization first. The Virginia Bureau of Insurance enforces the article against licensees.
Why the other options are wrong
- B) The article requires authorization before the disclosure; after-the-fact notice to the Bureau neither authorizes nor excuses the sharing.
- C) The insurer's approval cannot substitute for the individual's authorization; the privacy rights belong to the applicant.
- D) That information sits in the producer's files does not free it from the privacy restrictions; the disclosure still requires the individual's authorization.
Memory hook
Their health facts, their signature first.