Lakeside Indemnity receives an inquiry from David, who provides his financial background and health history to obtain a life insurance quote. David ultimately decides not to purchase the policy. A few weeks later, Lakeside Indemnity decides it wants to share David's nonpublic personal information with an unaffiliated third-party marketing firm. Under the Gramm-Leach-Bliley Act (GLBA), what is Lakeside Indemnity required to do before sharing this information?
- Provide David with an initial privacy notice and a clear opportunity to opt out of the information sharing.Cevap
- BNothing, because David is classified as a consumer rather than a customer, meaning the agency is exempt from providing privacy notices.
- CProvide David with an annual privacy notice detailing the agency's information-sharing practices.
- DAutomatically share the information as long as the third-party marketing firm agrees to abide by the Safeguards Rule.
Cevap
Lakeside Indemnity must provide David with an initial privacy notice and a clear opportunity to opt out of the information sharing.
The correct answer accurately reflects the Financial Privacy Rule of the Gramm-Leach-Bliley Act. Because David is a consumer, Lakeside Indemnity is not automatically required to give him a privacy notice just for quoting. However, the moment the agency decides to share his nonpublic personal information with a non-affiliated third party, it triggers the requirement to provide an initial privacy notice and give David a reasonable opportunity to opt out.
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GLBA Consumer vs. Customer Privacy Notice Requirements