Which legislation regulates the disclosure of nonpublic personal information by insurers?

The Gramm-Leach-Bliley Act of 1999 is the legislation that regulates the disclosure of nonpublic personal information by insurers. This Act was significant because it established rules governing the treatment of personal financial information and emphasized the importance of protecting consumer privacy. It requires financial institutions, including insurance companies, to disclose their information-sharing practices to consumers and to provide them with the right to opt out of certain disclosures.

The Act’s primary objective is to ensure that consumers’ personal information is safeguarded and used responsibly, giving them the ability to understand how their information is being shared and used by financial entities, which encompasses insurers. This focus on consumer privacy and the regulatory requirements placed on financial institutions makes the Gramm-Leach-Bliley Act the correct answer in the context of regulating insurance practices concerning nonpublic personal information.

Other pieces of legislation mentioned, such as HIPAA, primarily address medical privacy, the Fair Credit Reporting Act deals with credit information and reporting, and the Insurance Information and Privacy Protection Act focuses on the insurance industry's specific practices related to privacy but does not encompass the broader scope of regulations that the Gramm-Leach-Bliley Act provides for all financial institutions.