Georgia Property & Casualty Practice Exam

What was the primary purpose of the Gramm-Leach-Bliley Act, the Federal Trade Commission Act, and the Health Insurance Portability and Accountability Act?

1. To keep insurance rates affordable for consumers.

2. To protect the privacy of consumers' information.

3. To identify and punish insurers' fraudulent practices.

4. To provide consumers and insurers a means to settle disputes without litigation.

The correct answer is: To protect the privacy of consumers' information.

The primary purpose of the Gramm-Leach-Bliley Act, the Federal Trade Commission Act, and the Health Insurance Portability and Accountability Act is to protect the privacy of consumers' information. These pieces of legislation collectively aim to ensure that personal information held by financial institutions, such as insurers, is kept confidential and secure. The Gramm-Leach-Bliley Act specifically focuses on the protection and privacy of consumers' personal financial information held by financial institutions. It mandates that institutions establish privacy policies and practices, and it provides consumers with the right to opt out of having their information shared with non-affiliated third parties. Similarly, the Federal Trade Commission Act prohibits unfair or deceptive acts or practices in commerce, which includes ensuring that consumer information is handled appropriately. The Health Insurance Portability and Accountability Act (HIPAA) also emphasizes the importance of safeguarding sensitive health information, providing strict guidelines on how personal health information must be protected and who can access it. Overall, the common thread among these acts is their commitment to consumer privacy and the protection of personal information, making the option about protecting consumer privacy the correct choice.