Author: Judi Newman

Do you know why that Privacy Notice is on your website? Or are you one of many that haven't taken the time to even put one there?

The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.

COMPLIANCE IS NOT AN OPTION!

In 1999, the Gramm-Leach-Bliley Act (GLB) was signed into law. The only section we want to address is that it requires that all "financial institutions" follow the law. In the beginning, insurance entities, companies, and agencies blew it off. That is until in 2001 the definition of "financial institution" was clarified to include insurance organizations including insurance agencies that previously thought themselves exempt.

The initial step involved with GLB was to mail at least annually a privacy statement to all of the customers of the "financial institution" which included insurance agencies. Do any of you remember following this mandate? For the record, very few agencies did send privacy notices.

Around 2006, the Federal Trade Commission (FTC) who is responsible for enforcing GLB announced that placing your privacy statement on your website was an acceptable practice for some in lieu of the annual mailings. However, to be clear, a new customer was to receive a printed mailing as part of the new customer package.

Now a reality check is needed. I have been in hundreds of agencies for various reasons and I have yet to find one that understands the significance of GLB. It is time to open up this up topic and address how insurance agents are putting their customers' nonpublic personal information at risk and their agency at even greater risk.

For more information on the status of your privacy statement, if you have one, feel free to contact Judi Newman at judi@netgendatasecurity.com. If you don't have one on your website all the more reason to contact Judi at NET GEN.

Net Gen Data Security is committed to working with insurance agencies in all things privacy and security. To check your compliance level, go to www.netgensurvey.com and take this short survey. You have nothing to lose and everything to gain.

Coming from Judi in the next edition of VUpoint:

"Insurance Company Agency Agreement Language That Could Drain Your Agency Assets"

Last Updated: November 1, 2016