Notice of information practices must be given to a policyholder at least?

Notice of information practices must be provided to a policyholder at least every 3 years to ensure compliance with privacy regulations, particularly relating to how their personal information is collected, used, and disclosed by insurers. This periodic notification is essential for maintaining transparency and fostering trust between the insurer and the policyholders.

The requirement reflects the importance of keeping policyholders informed about their rights concerning their personal information, especially as circumstances or policies may change over time. Providing this notice every 3 years balances the necessity of informing customers with the operational realities of the insurance industry.

The other timeframes—yearly, every 5 years, and every 2 years—do not align with the stipulated regulatory requirements regarding the frequency of notice to policyholders. Each of those options either exceeds the minimum requirement or falls short, which is why they are not the correct choice.