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.Obtain the Commissioner's written approval before each collection
c.Pay the applicant a disclosure fee
d.Cease all underwriting until the applicant signs a waiver

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 §791.02

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