Montana State Life Insurance Practice Exam

What must an insurer do upon receiving a request regarding personal information?

1. Inform the individual within 15 business days

2. Delete all recorded personal information immediately

3. Provide a summary of the recorded information verbally

4. Inform the individual and permit access to the recorded personal information within 30 business days

The correct answer is: Inform the individual and permit access to the recorded personal information within 30 business days

When an insurer receives a request regarding personal information, it is required to inform the individual and provide access to the recorded personal information within 30 business days. This requirement is in place to ensure transparency and to protect the rights of individuals by allowing them to know what information is held about them. The 30-day timeframe gives the insurer adequate time to compile the requested information and respond appropriately. This process is vital as it empowers individuals to review and verify their personal data, promoting accountability within the insurance industry. The correct answer reflects these regulatory standards aimed at safeguarding consumer rights while still allowing insurers to manage their operations effectively.