Arizona Health Insurance Practice Exam

By what date must an insurer provide a notice of applicant if personal information is collected from sources other than public records or the applicant?

1. Within 15 days

2. Application date

3. Before policy issuance

4. Prior to premium payment

The correct answer is: Application date

The correct answer is that the notice must be provided on the application date. This is important because the law mandates that consumers be informed about the collection of personal information to protect their privacy and promote transparency. Insurers are required to notify applicants at the time of application when they obtain personal information from sources that are not publicly available or directly from the applicant themselves. This ensures that individuals are aware of what information is being collected and can make informed decisions about their insurance options. Providing the notice at the time of application offers transparency and establishes trust between the insurer and the applicant, giving the applicant the opportunity to understand and control their personal information from the very beginning of the insurance process. It also aligns with regulations aimed at protecting consumer rights and ensuring ethical handling of personal data.