Health Insurance Privacy Laws: FSMA and
FDCPA Regulations Questions with Verified
Correct Answers
What act was passed in 1999 to partially deregulate the financial services industry?
Financial Services Modernization Act (FSMA) or Gramm-Leach-Bliley Act
What does the FSMA allow insurance firms to do?
Merge with banks and cross-sell nontraditional insurance products
What does the FSMA prohibit regarding medical information?
Sharing among health insurers and other financial institutions for credit decisions
What does the FSMA's privacy rule protect?
Consumer personal financial information
What does the FSMA's safeguards rule require?
Security measures to prevent data breaches
What are pretexting provisions in the FSMA?
They make it illegal to use deceptive practices to obtain personal financial information
What is an example of pretexting?
A health insurance company requesting personal financial information under false pretenses
What does the Fair Credit Reporting Act (FCRA) prohibit?
The inclusion of certain medical information in consumer credit reports
What act was passed in 1977 to protect consumers from debt collectors?
Fair Debt Collection Practices Act (FDCPA)
What does the FDCPA prohibit?
FDCPA Regulations Questions with Verified
Correct Answers
What act was passed in 1999 to partially deregulate the financial services industry?
Financial Services Modernization Act (FSMA) or Gramm-Leach-Bliley Act
What does the FSMA allow insurance firms to do?
Merge with banks and cross-sell nontraditional insurance products
What does the FSMA prohibit regarding medical information?
Sharing among health insurers and other financial institutions for credit decisions
What does the FSMA's privacy rule protect?
Consumer personal financial information
What does the FSMA's safeguards rule require?
Security measures to prevent data breaches
What are pretexting provisions in the FSMA?
They make it illegal to use deceptive practices to obtain personal financial information
What is an example of pretexting?
A health insurance company requesting personal financial information under false pretenses
What does the Fair Credit Reporting Act (FCRA) prohibit?
The inclusion of certain medical information in consumer credit reports
What act was passed in 1977 to protect consumers from debt collectors?
Fair Debt Collection Practices Act (FDCPA)
What does the FDCPA prohibit?
