Under the federal Gramm-Leach-Bliley Act (GLBA), insurers and other financial institutions must:

Why D is correct

The Gramm-Leach-Bliley Act requires financial institutions, including insurers, to protect the privacy of nonpublic personal information. They must provide clear privacy notices describing their information-sharing practices, give customers the opportunity to opt out of certain sharing arrangements, and safeguard the information they hold. GLBA's privacy protections operate alongside California's own insurance information privacy law, which adds additional safeguards for consumers. Protecting customer information is also an ethical duty of every producer.

Why the other options are wrong

• A) GLBA restricts sharing of nonpublic personal information. It requires notice and opt-out opportunities, not free sharing. GLBA restricts the sharing of nonpublic personal information and requires both notice and an opt-out right.
• B) GLBA governs disclosures to various third parties, not only the federal government, and customer notice is required first. GLBA governs sharing with many third parties, not only the federal government, and notice to the customer comes first.
• C) GLBA addresses the privacy of financial information. It is not a consent requirement for selling life insurance products. GLBA concerns privacy of financial data, not a consent requirement for selling life insurance products.

Memory hook

GLBA says: tell them what you share, let them opt out, and keep their data in a vault.