1. (a) This part establishes standards for developing and implementing administrative, technical, and physical safeguards to protect the security, confidentiality, and integrity of customer information, pursuant to Sections 501, 505(b), and 507 of the Gramm-Leach-Bliley Act, codified at 15 U.S.C. §§ 6801, 6805(b), and 6807.

2. (b)

   1. (1) Section 501(a) provides that it is the policy of the United States Congress that each financial institution has an affirmative and continuing obligation to:

      1. (A) Respect the privacy of its customers; and
      2. (B) Protect the security and confidentiality of those customers’ nonpublic personal information.

   2. (2) Section 501(b) requires the state insurance regulatory authorities to establish appropriate standards relating to administrative, technical and physical safeguards to:

      1. (A) Ensure the security and confidentiality of customer records and information;
      2. (B) Protect against any anticipated threats or hazards to the security or integrity of such records; and
      3. (C) Protect against unauthorized access to or use of records or information that could result in substantial harm or inconvenience to a customer.
3. (c) Section 505(b)(2) calls on state insurance regulatory authorities to implement the standards prescribed under Section 501(b) by rules with respect to persons engaged in providing insurance.

4. (d)

   1. (1) Section 507 provides, among other things, that a state rule may afford persons greater privacy protections than those provided by Subtitle A of Title V of the Gramm-Leach-Bliley Act.
   2. (2) This part requires that the safeguards established pursuant to this part shall apply to nonpublic personal information, including nonpublic personal financial information and nonpublic personal health information, about customers and nonpublic personal information contained on applications for an insurance product submitted to a licensee by a consumer, regardless of whether the insurance product is ultimately purchased by the consumer.

Codification Notes: Gramm-Leach-Bliley Act was enacted by Pub. L. No. 106-102.