What categories of information need to be disclosed regarding former customers?

The correct response involves disclosing categories of nonpublic personal financial information and categories of third parties. This aligns with regulatory requirements pertaining to privacy and information sharing in the insurance industry. When dealing with former customers, it is crucial to recognize the importance of protecting sensitive information to comply with laws like the Gramm-Leach-Bliley Act, which mandates that financial institutions provide clear privacy notices.

Disclosing categories of nonpublic personal financial information ensures that clients are aware of how their sensitive data – such as income, credit history, and personal identifiers – is handled and protected. Additionally, informing about the categories of third parties with whom this information may be shared is vital, as it informs the former customers about who might have access to their data, thereby reinforcing their right to privacy.

In contrast, options involving banking details, credit scores, the amount of transactions, or simply contact information do not comprehensively cover the privacy obligations set forth for financial institutions and risk misrepresenting the extent of what information must be disclosed. The focus needs to remain on the broad categories that encapsulate both personal data protection and third-party information sharing, making the first choice the most appropriate.