The Gramm-Leach-Bliley Act (GLB) is a federal law created to protect the sensitive data of consumers. It limits the use and disclosure of customer information. Laws such as the Gramm-Leach-Bliley Act (GLB) are extremely important when it comes to protecting sensitive information of consumers from being shared. Every company and employee who handles sensitive information must be aware of and understand the ins and outs of this law.
The professionals at Apartment Lists are in full compliance with all federal and state laws. We honor the privacy of customers and businesses alike. Our staff understands the laws themselves, as well as the risks and penalties of non-compliance. We build our business on a foundation of trust and honorable business practices. It’s important to us that we ensure our clients also understand these very important laws.
We pride ourselves in not only ensuring that our business follows all federal and state regulations, but by sharing this important information with all companies. We understand the importance of building and maintaining a superior level of trust between consumers and agencies. Trust is not only important for the consumers, but following federal and state regulations ensures the full protection of their information.
All about the Gramm-Leach-Bliley Act (GLB)
In 1999 the Gramm-Leach-Bliley Act (GLB) was enacted. This law protects the personal information financial institutions, agencies, and other businesses regularly collect. Insurance agents and select other professionals collect this type of information. They do this in order to effectively advice their clientes. Due to the highly sensitive nature of this information, it falls under both state and federal data privacy protection laws. The Federal Trade Commission, in addition to the Securities and Exchange Commission circulate GLB Act regulations. This important law is also enforced on a state level by state insurance authorities.
The GLB Act is applicable to almost all insurance brokers, agents, and financial institutions. According to the Gramm-Leach-Bliley Act (GLB) personal, nonpublic information provided by consumers to their financial institutions is protected. This means that the GLB Act covers any information provided by consumers in order to obtain financial products or services, as well as the results from the transactions involving those products and services. The GLB Act does not protect public information, but it does also protect information obtained in connection with providing financial products or services.
Requirements of the Gramm-Leach-Bliley Act (GLB)
The GLB Act requires that agencies and brokers comply with the regulations. This includes informing consumers about the protection and handling of their personal, nonpublic information. Any agencies or brokers who obtain this information must provide customers who have ongoing relationships with their institution regular privacy statements. These statements must detail information privacy practices. You must offer consumers the opportunity to opt-out of all third party information sharing.
Provide your customers with assurance that the access to their information is restricted and that their information is not shared with other parties. They also need to be provided with assurance of the adequate disposal of their sensitive information. Contracts need to exist with service providers who handle the sensitive information as well.
The Gramm-Leach-Bliley Act (GLB) also includes specific security measure requirements such as customer information system access control. Companies, agents, and brokers must have controls in place that permit access to only authorized individuals and systems. Controlling access prevents fraud and ensures the safety of consumer information. This includes access control at any physical locations containing customer information as well as encryption of all electronic customer information both in transit and storage. The systems must also have modification procedures to protect information.
In addition to limiting access, companies must also perform employee background checks. There must be segregation of duties as well as dual control procedures and system monitoring procedures to detect attacks on systems containing customer information. Response programs must have protocol in place in case of a possible breech. Measures must also be in place to protect against environmental destruction as well as technological hazards and failures.
Extensively train all staff on the implementation and utilization of these security programs. It’s also important to perform regular testing of all systems, controls, and also procedures of these security programs.
Complying with the Gramm-Leach-Bliley Act (GLB)
Each component of the Gramm-Leach-Bliley Act (GLB) works together to achieve maximum safety protocol. Each company’s policies should be the result of overall policy assessment and comprehensive review. The GLB Act, like other Federal privacy laws, requires an exact set of actions required by each organization. State laws work in addition to the GLB, often going above and beyond the regulations mentioned above. Any agency handling this type of nonpublic information must have a thorough understanding of all federal and state laws.
All of this is in place to help customers trust the agencies handling their nonpublic information. These agencies need to constantly exercise care and consideration with all information provided by their customers. Understanding the federal and state requirements is just the first step in building trust between your company and its customers.
If an agency acts out of compliance of the GLB Act they not only betray their customers and lose trust, but they expose sensitive information to significant risk. They also face significant penalties for violating this law. The fine for each violation is up to $100,000. Violations can also result in criminal penalties such as additional fines and even up to five years of imprisonment. Ongoing violations carry more severe repercussions and penalties.
Our staff will help your company understand the seriousness of violating this and other federal or state laws. We can guide you to the requirements of the Gramm-Leach-Bliley Act (GLB) so you can learn what you need to do in order to be compliant. Compliance eliminates the financial and criminal penalties your company would otherwise face. It also helps solidify the bond of trust between your business and your customers. Don’t risk everything by not being aware of the federal and state laws.
Call Apartment Lists today at (800) 575-3002 to learn more information about the Gramm-Leach-Bliley Act (GLB).