Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Florida Law and EthicsMedium
A Florida insured is considering purchasing a new auto insurance policy. The agent explains that their personal information, including driving history and credit score, will be collected and used to determine their premium. The agent also assures the insured that this information will be protected. Which federal regulation primarily governs the privacy of this type of consumer financial information, including how insurers must handle and protect it?
- AGramm-Leach-Bliley Act (GLBA)
- BTelephone Consumer Protection Act (TCPA)
- CFair Credit Reporting Act (FCRA)
- DHealth Insurance Portability and Accountability Act (HIPAA)
Show answer & explanationAnswer & explanation
Correct answer: A. Gramm-Leach-Bliley Act (GLBA)
The Gramm-Leach-Bliley Act (GLBA) primarily governs the privacy of consumer financial information, requiring financial institutions, including insurance companies, to explain their information-sharing practices to customers and to safeguard sensitive data.
Why the other options are wrong
- B. TCPA regulates telemarketing calls and faxes, not financial data privacy.
- C. FCRA governs how consumer credit information is collected, used, and disseminated by credit reporting agencies, but GLBA is broader for financial institutions' overall privacy practices.
- D. HIPAA specifically protects health information.
Gramm-Leach-Bliley Act (GLBA)
A federal law that requires financial institutions, including insurers, to explain their information-sharing practices to consumers and to safeguard sensitive data.
- Applies to financial institutions, including insurance companies.
- Requires privacy notices to consumers.
- Mandates safeguarding customer information.
Memory trick: Privacy Laws: Protect Personal Info, Powerfully.