No it's not illegal. It's in case they have to send this to another doctor for a referral, etc. After your tests, the doctors might have to refer you to another doctor, and so they'll have to send your records to THEM and they have to have your permission to do that, so they have you sign a release of information. That's the only reason. If you dont have insurance, that is the only reason they're doing it.
Does that help explain it for you? Hugs, Lee