California Insurance Code & EthicsQuestion 68 of 716
Under California's Insurance Information & Privacy Protection Act, when an applicant's personal information will be collected from sources other than the application, the insurer must:
a.Provide a written notice of information practices describing the type of information collected and how it will be used
b.Cease all underwriting until the applicant signs a separate written waiver permitting contact with those outside sources
c.Pay the applicant a disclosure fee for each outside source the insurer contacts about the application
d.Obtain the Commissioner's prior written approval for each separate collection of data from an outside source about the applicant
Explanation
Article 6.6 (§§791+) requires a Notice of Information Practices describing data categories, sources, uses, and the consumer's rights of access and correction whenever personal data is collected from third parties.
Law Reference: Cal. Ins. Code §791.02This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)