What does the Gramm-Leach-Bliley Act require of financial institutions regarding customer information?

What does the Gramm-Leach-Bliley Act require of financial institutions regarding customer information?

• A. Protect nonpublic personal information, provide privacy notices, and offer opt-out options for sharing.
• B. A tax act that applies to life insurance premiums.
• C. A marketing regulation that bans all sharing of customer data.
• D. A statute requiring insurers to disclose all policy terms every year.

Answer: (A)

Gramm-Leach-Bliley Act focuses on how financial institutions handle customers' nonpublic personal information. It requires institutions to safeguard this data, to provide customers with a privacy notice that explains what information is collected, how it’s shared, and with whom, and to give customers the option to opt out of sharing with non-affiliated third parties. Those notices are provided when a relationship is established and, typically, annually thereafter, and the opt-out gives customers control over information sharing. It does not impose a blanket ban on sharing, nor is it a tax act or a requirement to disclose policy terms every year.

Gramm-Leach-Bliley Act focuses on how financial institutions handle customers' nonpublic personal information. It requires institutions to safeguard this data, to provide customers with a privacy notice that explains what information is collected, how it’s shared, and with whom, and to give customers the option to opt out of sharing with non-affiliated third parties. Those notices are provided when a relationship is established and, typically, annually thereafter, and the opt-out gives customers control over information sharing. It does not impose a blanket ban on sharing, nor is it a tax act or a requirement to disclose policy terms every year.