State RegulationsNC specificDifficulty 2/5
Under the North Carolina Insurance Information and Privacy Protection Act (Article 39, G.S. 58-39-5 through 58-39-120), an insurer that has collected an applicant's personal and privileged information may disclose that information only when:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Article 39 (G.S. 58-39-5 through 58-39-120), the Insurance Information and Privacy Protection Act restricts an insurer's collection, use, and disclosure of an individual's personal and privileged information; disclosure is permitted only as the Act authorizes — for example with the individual's written authorization or under another exception the statute provides. An unauthorized disclosure exposes the insurer to regulatory action by the Commissioner of Insurance.
Why the other options are wrong
- A) Selling an applicant's information to a marketing vendor without proper authorization is precisely the misuse the Act forbids.
- C) An employee's personal curiosity is not a lawful basis for disclosure; internal access must follow the Act's framework.
- D) Informal, undocumented sharing with another insurer lacks the authorization the Act requires for disclosure.
Memory hook
Private facts stay private unless the Act or the applicant says otherwise.