Ace the Oregon Life & Health Insurance Exam 2026 – Unlock Your Future in Finance!

The correct answer is that the maximum amount of time that can legally pass before disclosing privileged information, assuming the insured has signed an authorization form, is one year. This time frame aligns with the regulations governing the handling of personal information in accordance with privacy laws.

Insurers typically must obtain consent from the insured to share their protected health information or other private data, and the authorization is often valid for up to one year. This period ensures that the insurer has sufficient time to process requests for information while still adhering to the insured's right to control their own data, reflecting the importance of privacy in the insurance industry.

In contrast, the other options suggest shorter or longer periods which do not comply with these established privacy standards. For example, one month or 6 months would not provide adequate time for insurers to manage the necessary administrative processes, while a duration of 2 years exceeds the commonly accepted limits for such authorizations, potentially leading to privacy concerns.