Georgia Navigator Practice Exam

What does the Gramm-Leach-Bliley Act (GLBA) require from financial institutions?

1. To offer health insurance policies

2. To protect private data

3. To manage consumer grievances

4. To enroll clients in marketplace QHPs

The correct answer is: To protect private data

The Gramm-Leach-Bliley Act (GLBA) is primarily focused on the protection of consumers' private financial data. It mandates that financial institutions implement privacy policies and practices that safeguard individuals' personal information. This includes providing consumers with a clear understanding of how their data will be used and shared, as well as giving them the option to opt-out of any information-sharing processes that do not pertain to transactions or services they are already receiving. Through this legislation, the GLBA seeks to enhance consumer confidence in financial institutions by ensuring that their sensitive information, such as social security numbers, bank account details, and credit history, is adequately protected against unauthorized access and breaches. By prioritizing the protection of private data, the GLBA ultimately aims to maintain the integrity of the financial system and promote trust between consumers and financial entities. The other choices pertain to different areas of consumer services or regulations that are not addressed by the GLBA. Thus, the requirement for financial institutions under this act specifically centers on the safeguarding of private data.