What is the agent's primary duty regarding customer data privacy?

• A. The agent has a duty to keep customer data and personal information secure and should implement security systems and procedures to safeguard it.
• B. Data sharing among insurers should be avoided entirely.
• C. Insurers are allowed to share data with bureaus without notifying insureds.
• D. Privacy concerns can be ignored for large claims.

Answer: (A)

Protecting customer data privacy means the agent must keep personal information secure and implement security systems and procedures to safeguard it. This duty comes from the trust clients place in the agent and legal expectations that sensitive data be protected, so practical steps like access controls, encryption, secure storage, ongoing security training, and a clear privacy policy with a plan for responding to breaches are essential. Sharing data with other insurers or bureaus isn’t a free-for-all; it must follow privacy rules and contracts, with proper authorization and notice where required. Privacy cannot be ignored, even for large claims, because maintaining confidentiality and following lawful handling of information is fundamental to responsible service.