The Gramm-Leach-Bliley Act (GLBA) Privacy Rule requires financial institutions-including many insurance agencies and brokerages-to protect consumers' nonpublic personal information. Covered Entities must provide initial and annual privacy notices describing categories of data collected,how information is used and shared, and options to opt out of certain disclosures to nonaffiliated third parties. The rule restricts sharing account numbers for marketing, mandates contracts with service providers to safeguard data, and coordinates with state privacy laws. Together with the GLBA Safeguards Rule, the Privacy Rule forms the foundation for compliant data handling in insurance distribution and client servicing.

Agencies deliver initial and annual privacy notices, maintain opt-out processes, and update vendor contracts to restrict data sharing. Staff training and secure portals align sales, underwriting, andservicing with GLBA. During carrier or regulatory audits, documented policies and logs demonstrate compliance.