Data Privacy Act Practice Test

The processing of sensitive personal information is prohibited when it is not necessary for the protection of life. This is because sensitive personal information, which includes data such as health records, racial or ethnic origin, and religious beliefs, is subject to stricter regulations due to its potential to cause harm or discrimination if mishandled.

In situations where the processing of such information is not essential for protecting someone's life, the law recognizes the heightened risk involved in handling this data without a clear and critical justification. This reflects a broader principle in data protection laws, which seeks to maintain a balance between individual privacy rights and necessary data processing activities, particularly those linked to health and safety.

Other options discuss circumstances that can affect the legality of data processing, but they do not capture the specific prohibition related to the necessity for life protection. They address elements like consent and legitimate purposes, which, while important, do not specifically align with the critical threshold of processing required to prevent life-threatening situations. Thus, the correct answer highlights the crucial condition where processing sensitive personal information is deemed unacceptable in the absence of life protection justifications.