Arizona Life and Health Practice Exam

What information is specifically highlighted as requiring a notice when collected by insurers?

1. Medical history from hospitals

2. Personal information from non-public records

3. Financial information from credit agencies

4. Employment records from past employers

The correct answer is: Personal information from non-public records

The correct answer emphasizes the need for notice when collecting personal information from non-public records. This is particularly important because non-public personal information can include sensitive data that is not easily obtained and might significantly impact an individual's privacy. Insurance companies are required to inform policyholders and applicants about the collection of this type of information to ensure transparency and compliance with privacy laws. Insurers have a responsibility to protect consumer information, especially when it involves data that could be misused if not safeguarded properly. The notice given to consumers usually outlines what information is being collected, the purpose of the collection, and how that information will be used or shared. This aligns with the regulatory requirements designed to protect consumers' privacy. While medical history, financial information, and employment records are also sensitive and subject to various regulations, the specific requirement for notification when dealing with non-public records is particularly highlighted in laws like the Gramm-Leach-Bliley Act. This law emphasizes the consumer's right to be aware and informed about the handling of their private information, enhancing consumer protection measures overall.