Washington Life Producer Practice Exam

When is a life insurance producer required to give a disclosure notice about information practices?

1. After the policy is approved

2. Prior to or at the time of signing the application

3. Only upon request from the applicant

4. At the end of the insurance term

The correct answer is: Prior to or at the time of signing the application

A life insurance producer is required to give a disclosure notice about information practices prior to or at the time of signing the application because this timing ensures that the applicant is fully informed about how their personal information will be handled before they commit to the policy. This practice aligns with consumer protection principles, allowing applicants to understand their rights and the company's practices regarding privacy and data management before providing sensitive information. Providing this disclosure upfront promotes transparency and helps build trust in the insurance process. This requirement is typically in place to comply with regulations aimed at protecting consumers in financial transactions, ensuring they are aware of how their data may be used and shared.