Under privacy regulation, a customer relationship is established when:

• A. A consumer becomes the licensee's policyholder or agrees to pay for financial advice about insurance.
• B. A consumer purchases a policy online without consulting an agent.
• C. A consumer attends a seminar about insurance.
• D. A consumer submits a health questionnaire.

Answer: (A)

In privacy regulation, a customer relationship begins when there is a formal financial tie with the insurer—that is, when the consumer becomes the policyholder or agrees to pay for financial advice about insurance. This shows a continuing, contractual relationship that triggers the insurer’s privacy protections and authorizes sharing of nonpublic personal information within allowed limits. Attending a seminar or submitting a health questionnaire doesn’t create that kind of ongoing arrangement, since there’s no policy ownership or paid-for advice involved. Purchasing a policy online would typically make someone a policyholder, which also establishes the customer relationship, but the essential idea is the existence of a formal financial relationship.