Which of the following is the Gramm-Leach-Bliley Act primarily aimed at regulating?

• A. The tax treatment of life insurance benefits
• B. The solvency requirements for insurers
• C. The disclosure of personal financial information to third parties
• D. The licensing of producers

Answer: (C)

The main idea here is privacy of consumer financial information and how that information can be shared. The Gramm-Leach-Bliley Act focuses on protecting nonpublic personal data held by financial institutions and setting rules for how that data can be disclosed to third parties. It requires notices about privacy practices, gives customers the option to opt out of certain sharing with nonaffiliated third parties, and mandates safeguards to protect data from unauthorized access or misuse. This is exactly what is being asked by the choice that describes the disclosure of personal financial information to third parties.

Tax treatment of life insurance benefits isn’t about privacy or data sharing; it’s a tax issue. Solvency requirements for insurers relate to financial health and reserve rules, which are overseen by state regulators, not primarily by GLBA. Licensing of producers is a separate regulatory domain handled by state insurance departments.