What is the regulation concerning the confidentiality of life insurance applicant information?

The correct response underscores the fundamental obligation of insurers to safeguard the personal information of life insurance applicants. Under Virginia law, as well as under various federal regulations such as the Gramm-Leach-Bliley Act, confidentiality is a critical aspect of how insurers handle applicant data. Insurers are required to implement reasonable measures to protect sensitive personal information and are prohibited from disclosing this information to third parties without the explicit consent of the individual.

This regulation is essential to maintain trust between the insurer and the policyholder, as it ensures that private information is not misused or accessed without appropriate permission. The requirement for consent reinforces the individual's control over their own personal data and promotes transparency in how that information may be used.

In contrast, the other options suggest practices that violate the principles of confidentiality and the legal obligations of insurers. The notion that insurers can freely share or sell personal information without consent undermines consumer protection regulations and disregards the ethical responsibilities that insurers have toward their clients.