What is the purpose of the Insurance Info and Privacy Protection Act?

The purpose of the Insurance Info and Privacy Protection Act is to protect consumers and their confidential information. This legislation establishes standards for how insurance companies handle personal and sensitive data, ensuring that consumer privacy is safeguarded. Under this act, insurers are required to disclose their information-gathering practices and obtain consent from individuals before sharing their information with third parties. This intent is to enhance consumer trust and protect their rights concerning personal data, thereby preventing unauthorized access and misuse.

In contrast, allowing unlimited access to personal information would undermine the privacy protections established by this law, making consumers more vulnerable. Regulating insurance premiums is not the focus of this act, as it primarily deals with privacy and information handling rather than financial aspects of insurance. Likewise, ensuring uniform advertising practices does not fall under this act's objectives, as its main aim is to protect personal information rather than dictate how insurance products are marketed.