PRIVACY 2 Privacy for Customer Contact Personnel

b. A is incorrect because the disclosures are required by law and are not just a response to consumer concerns. C is incorrect because the disclosures are required by law and are not a response to increased competition. D is incorrect because the Right to Financial Privacy Act focuses on requirements for sharing consumer information with government agencies, not on general information sharing practices.

1. A customer tells you he recently received something in the mail from your financial institution. It was a notice that described your institution's practices regarding the sharing of customer information. He asked you why he received the notice. What is the best response to his question? A. Recent concerns by consumers over how information is used by financial institutions has caused banks to revise certain policies. Those policies are outlined in the privacy policy notice you received B. The Gramm-Leach-Bliley Act requires that all financial institutions provide privacy disclosures to customers when they establish a relationship and annually thereafter C. Due to increased competition among financial institutions, banks and other institutions are looking at ways to improve customer service. These notices are meant to keep customers informed and thus improve customer relations D. The Right to Financial Privacy Act requires that financial institutions provide privacy disclosures to customers on an annual basis ID:BC9E3EBE934D48C58E5C1EE107E63E49

a. B is incorrect because the purpose of the Right to Financial Privacy Act, not the Gramm-Leach-Bliley Act, is to protect the financial records of individuals from unfettered access by the federal government. C is incorrect because the Gramm-Leach-Bliley Act is NOT primarily a consumer privacy law. D is incorrect because the Fair Credit Reporting Act, not the Gramm-Leach-Bliley Act, regulates the consumer reporting industry to ensure that credit information is reported accurately.

1. Mike needs to summarize Title V of the Gramm-Leach-Bliley Act into one statement. Which statement accurately describes Title V of the Gramm-Leach-Bliley Act? A. Title V of the Gramm-Leach-Bliley Act requires financial institutions to safeguard the security and confidentiality of customers' nonpublic personal information B. The purpose of Title V of the Gramm-Leach-Bliley Act is to protect the financial records of individuals from unwarranted access by the federal government C. The Gramm-Leach-Bliley Act is primarily a consumer privacy law D. Title V of the Gramm-Leach-Bliley Act regulates the consumer reporting industry to ensure accurate reporting of credit information ID:BE0750E49C3C47319AFEC48CCE574682

d. A is incorrect because only customers receive a financial institution's privacy notice automatically. B and C are incorrect because, depending on the bank's privacy practices, both consumers and customers may have rights under the law and be able to opt out.

1. Under the (GLBA) privacy rule, why is it important to differentiate between a consumer and a customer? A. Only consumers receive a financial institution's privacy notice automatically B. Only consumers have any privacy rights under the law C. Only consumers can opt out D. Only customers receive a financial institution privacy notice automatically ID:7B5612F9DCF54132BD6CABA96F314E96

d. A, B, and C are incorrect because ''public information'' is any information that is lawfully made available to the general public, which includes information from state or local government records.

10. ''Nonpublic personal information'' is part of Title V of GLB. Financial institutions are required to safeguard the security and confidentiality of customers' nonpublic personal information. Which statement accurately defines the term ''nonpublic personal information''? A. Any information that is lawfully made available to the general public and personally identifiable financial information B. Personally identifiable financial information and information from state or local government records C. Information from state or local government records and information that is lawfully made available to the general public D. Account balance, debit card purchase information, and personally identifiable financial information ID:F6199CE8B82843A98DFBAC6984656257

b. A, C, and D are incorrect because they are not privacy related laws.

10. The term "privacy" refers to several laws and regulations. Which act is a privacy related law? A. The Equal Credit Opportunity Act B. Gramm-Leach-Bliley Act C. E-Sign Act D. Bank Protection Act ID:C6B6B64C70C943B9975E8B384E7B232E

c. A is incorrect because GLBA allows that if state law is more protective, state law will apply. B is incorrect because this is not a customer choice. D is incorrect because customers cannot opt out of certain sharing regardless of which law applies.

11. Some state laws contain an opt in provision as opposed to the opt out provision found under the GLBA. What must a bank located in such a state do? A. Nothing. Federal law always takes precedence over state law B. Give customers the choice of which law they would prefer C. Abide by the state law if it is more protective for the customer D. Allow the customer to opt out of all sharing - even sharing that is permitted under GLBA ID:EFB30880AA3C4A1C99DB3FC2C366B07D

c. A is incorrect because GLBA allows that if state law is more protective, state law will apply. B is incorrect because this is not a customer choice. D is incorrect because customers cannot opt out of certain sharing regardless of which law applies.

11. Sydney lives in a state that allows residents of that state to opt in to sharing of non-public personal information. Sydney just received a GLBA privacy notice from ABC National Bank. What did her bank do in order to accommodate state law? A. Nothing. Federal law always takes precedence over state law B. Give Sydney the choice of which law she would prefer C. Abide by the state law if it is more protective for the customer D. Allow the customer to opt out of all sharing - even sharing that is permitted under GLBA ID:2BA4F1F37B134DE5AF88F996B6810ACE

c. A is incorrect because the use of the model is optional. B is incorrect because it does provide financial institutions using it properly with a safe harbor. D is incorrect because the model does not make it any more or less likely that a consumer will opt out.

11. Which of the statements regarding the Model Privacy notice introduced in 2010 is true? A. It was mandatory for all financial service providers to use this Model effective 1/2011 B. Using the model does not provide a financial institution with a safe harbor C. It was created following consumer testing to provide customers with a format that makes a bank's privacy practices more understandable and more easily compared with other bank's practices D. It makes it less likely that a customer will opt out ID:A44585877B064CE0AF272D2890E0E83E

a. B is incorrect because the customer can opt out at any time. C is incorrect because the opt out under GLBA lasts indefinitely or until it is revoked by the customer. D is incorrect because the bank may ask the customer to opt out every 5 years under the FCRA rules.

11. Which statement concerning opt outs is true? A. If the customer does not opt out—either for Privacy Rules or for FCRA information sharing or marketing rules—the bank may share information B. The customer only has one opportunity to exercise his or her opt out rights C. Under the GLBA, a customer's decision to opt out lasts for 3 years D. Under the GLBA opt out, the opt out lasts indefinitely. If, on the other hand, a customer opts out from information sharing with affiliates under FCRA, that opt out is only good for two years (the bank may extend the two years as a matter of policy) ID:E8ED337FF2224CDAB92C0D20ABD8CB54

b. A, C, and D are incorrect because they are considered to be ''reasonable means'' for the customer to opt out.

12. A bank must provide consumers with a "reasonable opportunity" to opt out before disclosing nonpublic personal information about them to nonaffiliated third parties. Which situation is NOT a reasonable means by which a customer may opt out of information sharing under GLBA? A. Allowing the customer to call a toll-free telephone number B. Asking the consumer to write his or her own letter to exercise that opt out right C. Providing the customer with a detachable form with mailing information D. If the consumer has agreed to receive notices electronically, providing an electronic means such as a form that can be e-mailed or through the financial institution's website ID:B67968BB839E4D1CA3890E40199ACEE0

b. A, C, and D are incorrect because the conditions are that the bank has not changed its policies and practices with respect to the disclosure of nonpublic personal information since its most recent privacy notice to customers and the financial institution only shares information under one of the existing statutory or regulatory exceptions for sharing information.

12. Prior to December 4, 2015, banks were required to provide both initial and annual privacy notices to its customers. The FAST Act changed that and banks may now forego sending the annual notice if two conditions are met. What is one of those conditions? A. The financial institution does not have affiliates B. The financial institution only shares information under one of the existing statutory or regulatory exceptions for sharing information C. The financial institution has posted the most current version of its privacy notice on its website D. The financial institution uses the model notice at all times ID:50AA8E572684436B81DDCE741118706A

b. A and D are incorrect because these are not privacy laws. C is incorrect because there is no such law.

12. There are several laws and regulations that protect the privacy of customer information. Which act is a privacy related law? A. E-Sign Act B. Fair Credit Reporting Act C. Grammley Act D. Bank Protection Act ID:1CCCBE54AF144149B30AA0494717D31F

b. A, C, and D are incorrect because the conditions are that the bank has not changed its policies and practices with respect to the disclosure of nonpublic personal information since its most recent privacy notice to customers and the financial institution only shares information under one of the existing statutory or regulatory exceptions for sharing information. Since the bank has changed its privacy practices and now shares outside of the exceptions, the annual notice is required.

13. Dan is in the marketing department of your bank and has heard through the grapevine that annual privacy notices are no longer required. You told Dan that your bank must continue to send your annual notice. Why would your bank have to do that? A. Your bank shares with affiliates B. Your bank has changed its privacy practices since your last notice was provided and now shares with unaffiliated third parties C. Your bank has not posted the most current version of its privacy notice on its website D. Your bank does not use the model notice ID:C0BB8A2F1515422B8C7D50F59D81EEF1

b. A, C, and D are incorrect because they are not examples of valid exceptions where the bank is permitted to share information.

13. Exceptions to information sharing are allowed by law. In these exceptions, banks can share information about consumers and customers even though they have opted out. Which example is an exception? A. A bank may share confidential customer information with outside vendors that provide services to the bank, such as office cleaning B. A bank may disclose information that is legally required, such as reporting interest to the IRS or responding to a subpoena or court order C. A bank may disclose confidential customer information to the bank's training vendor for compliance training purposes D. A bank may disclose information to a 3rd party marketer that uses the information to market that vendor's own non-financial products and services ID:A90A701D488B48F3AACC9BAE7E9174DA

d. A, B, and C are incorrect because ''public information'' is any information that is lawfully made available to the general public, which includes information from state or local government records.

13. Which statement accurately describes the term ''nonpublic personal information''? A. Any information that is lawfully made available to the general public and personally identifiable financial information B. Personally identifiable financial information and information from state or local government records C. Information from state or local government records and information that is lawfully made available to the general public D. Account balance, debit card purchase information, and personally identifiable financial information ID:AEB554453A0440C08880A4540C43777F

a. B and D are incorrect because these are not privacy laws. C is incorrect because there is no such law..

14. Several laws and regulations are included when the term "privacy" is discussed. Which act is considered a privacy related law? A. Right to Financial Privacy Act B. E-Sign Act C. Grammley Act D. Bank Protection Act ID:0B789AAE7ED74E8C840F020E96F4D2F8

c. A, B, and D are incorrect because they are considered to be ''reasonable means'' for the customer to opt out.

14. The GLBA gives customers the right to opt out of information sharing, and banks must provide customers with a reasonable opportunity to do so. Which situation is NOT a reasonable means by which a customer may opt out? A. Allowing the customer to call a toll-free telephone number B. Providing the customer with a detachable form with mailing information C. Asking the consumer to write his or her own letter to exercise that opt out right D. If the consumer has agreed to receive notices electronically, providing an electronic means such as a form that can be e-mailed or through the financial institution's website ID:33760C6E56064D5390952CD3A326DE11

b. A, C, and D are incorrect because the privacy notice must be provided at account opening and annually unless certain conditions are met.

14. The Gramm-Leach-Bliley Act requires banks to provide privacy notices to customers at which two points during the customer relationship? A. At account opening and with each loan application B. At account opening and annually unless certain conditions are met C. Twice a year and when the customer requests online access D. Monthly with each periodic statement or quarterly if a monthly statement is not provided ID:08D5C7DB66EC41A38645D654E67239DB

d. A is incorrect because a bank may permit the customer to opt out of sharing with all or just some affiliates. B is incorrect because opting out does not make the customer ineligible for products and services offered by an affiliate; it just means the affiliate may not send the customer marketing materials. C is incorrect because the FCRA does not allow a customer to opt out of sharing transactional or experience information with affiliates.

15. Under the FCRA, customers have the right to opt out of the sharing of third party information with affiliates. Which statement is true regarding opt out rights under FCRA? A. The opt out right is ''all or nothing''; if the customer opts out of sharing with one affiliate the customer must opt out of sharing with all affiliates B. If the customer opts out of sharing for marketing purposes the customer is no longer eligible for any products for services offered by an affiliate C. A customer may opt out of sharing transactional or experience information with affiliates D. A bank that has multiple affiliates can provide an opt out notice that allows the customer to opt out of sharing with all or just one of those affiliates ID:11BAD4D22B354A3E95D0E6242AA8F457

a. B is incorrect because the purpose of the Right to Financial Privacy Act, not the Gramm-Leach-Bliley Act, is to protect the financial records of individuals from unfettered access by the federal government. C is incorrect because the Gramm-Leach-Bliley Act is NOT primarily a consumer privacy law. D is incorrect because the Fair Credit Reporting Act, not the Gramm-Leach-Bliley Act, regulates the consumer reporting industry to ensure that credit information is reported accurately.

15. Which statement accurately describes Title V of the Gramm-Leach-Bliley Act? A. Title V of the Gramm-Leach Bliley Act requires financial institutions to safeguard the security and confidentiality of customers' nonpublic personal information B. The purpose of Title V of the Gramm-Leach-Bliley Act is to protect the financial records of individuals from unwarranted access by the federal government C. The Gramm-Leach-Bliley Act is primarily a consumer privacy law D. Title V of the Gramm-Leach-Bliley Act regulates the consumer reporting industry to ensure accurate reporting of credit information ID:C8E2E60D90CD47E4B81A0485325F0B8C

d. A, B, and C are incorrect because the privacy notice must be provided at account opening and annually unless certain conditions are met.

2. A requirement of the Gramm-Leach-Bliley Act is that privacy notices are provided to customers at two points during the customer relationship. When must privacy notices be provided? A. At account opening and with each loan application B. Twice a year and when the customer requests online access C. Monthly with each periodic statement or quarterly if a monthly statement is not provided D. At account opening and annually unless certain conditions are met ID:E57FE6FF29C148E4A336CD4C8164A0B0

d. A is incorrect because the disclosures are required by law and are not just a response to consumer concerns. B is incorrect because the disclosures are required by law and are not a response to increased competition. C is incorrect because the Right to Financial Privacy Act focuses on requirements for sharing consumer information with government agencies, not on general information sharing practices.

2. Mrs. Thatcher brings a notice into the branch sent by your financial institution. The notice describes the institution's policies about sharing customer information. She wants to know why she received the notice. What is the best response to her question? A. Recent concerns by consumers over how information is used by financial institutions has caused banks to revise certain policies. Those policies are outlined in the privacy notice you received B. Due to increased competition among financial institutions, banks and other institutions are looking at ways to improve customer service. These notices are meant to keep customers informed and thus improve customer relations C. The Right to Financial Privacy Act requires that financial institutions provide privacy disclosures to customers on an annual basis D. The Gramm-Leach-Bliley Act requires that all financial institutions provide privacy disclosures to customers when they establish a relationship and annually thereafter ID:C2F6D1F557664C56A8B39D0E18C268CD

d. A is incorrect because only customers receive a financial institution's privacy notice automatically. B and C are incorrect because, depending on the bank's privacy practices, both consumers and customers may have rights under the law and be able to opt out.

2. Which statement best explains why it is important to differentiate between a consumer and a customer? A. Only consumers receive a financial institution's privacy notice automatically B. Only consumers have any privacy rights under the law C. Only consumers can opt out D. Only customers receive a financial institution privacy notice automatically ID:632323F9BB5A45209B1A1E120765BC0A

a. B is incorrect because the right to opt out is the consumer's right and is directed at nonaffiliated third parties (not government agencies). C is incorrect because consumers do not have the right to opt out of information sharing with the institution they are directly doing business with, only nonaffiliated third parties. D is incorrect because the right to opt out is the consumer's right.

3. Penelope is completing an account application with personal information and selects the box provided on the accompanying privacy notice to indicate she wants to opt out. What does it mean to "opt out" as defined under the (GLBA) privacy rules? A. It means that Penelope has exercised her right to deny a financial institution the ability to disclose to certain nonaffiliated third parties any nonpublic personal information B. It means that Penelope's financial institution can withhold her information from government agencies C. It means that Penelope has exercised her right to deny a financial institution certain information when she applies for credit D. It means that Penelope's financial institution now has the right to deny nonaffiliated third parties access to certain consumer information ID:D3F5CA45043444A98C60FDE508C6227F

d. A is incorrect because only customers receive a financial institution's privacy notice automatically. B and C are incorrect because, depending on the bank's privacy practices, both consumers and customers may have rights under the law and be able to opt out.

3. The (GLBA) privacy rule makes a distinction between consumer and customer. Why it is important to make this differentiation? A. Only consumers receive a financial institution's privacy notice automatically B. Only consumers have any privacy rights under the law C. Only consumers can opt out D. Only customers receive a financial institution privacy notice automatically ID:9421C7F15D0745D5A744AAB56292CB9D

c. A, B, and D are incorrect because the Fair Credit reporting Act governs the sharing of customer information for marketing purposes.

3. The rules that govern the sharing of information with affiliates for marketing purposes fall under which regulation? A. The Gramm-Leach-Bliley Act B. The Children's Online Privacy and Protection Act C. The Fair Credit Reporting Act D. The Fair Debt Collection Practices Act ID:ED7981A7DF384857B3F1115D8E681079

d. A, B, and C are incorrect because they are considered to be ''reasonable means'' for the customer to opt out.

3. Which situation is NOT a reasonable means by which a customer may opt out of information sharing under GLBA? A. Allowing the customer to call a toll-free telephone number B. Providing the customer with a detachable form with mailing information C. If the consumer has agreed to receive notices electronically, providing an electronic means such as a form that can be e-mailed or through the financial institution's website D. Asking the consumer to write his or her own letter to exercise that opt out right ID:7FC90424F4B44898A4B90CFAB9D7CB92

c. A is incorrect because GLBA allows that if state law is more protective, state law will apply. B is incorrect because this is not a customer choice. D is incorrect because customers cannot opt out of certain sharing regardless of which law applies.

4. Some states have more protective privacy laws than those provided under the GLBA. What must the bank do in such cases? A. Nothing. Federal law always takes precedence over state law B. Give customers the choice of which law they would prefer C. Abide by the state law if it is more protective for the customer D. Allow the customer to opt out of all sharing - even sharing that is permitted under GLBA ID:ECE6D92DEDBC4679A053E8D68F8CE638

a. B, C, and D are incorrect because the Fair Credit reporting Act governs the sharing of customer information for marketing purposes.

4. Which regulation includes rules that govern the sharing of information with affiliates for marketing purposes? A. The Fair Credit Reporting Act B. The Gramm-Leach-Bliley Act C. The Children's Online Privacy and Protection Act D. The Fair Debt Collection Practices Act ID:81083EE657DF4E3D8B2DA9F19D4AD2ED

a. B, C, and D are incorrect because the privacy notice must be provided at account opening and annually unless certain conditions are met.

5. As required by the GLBA, the privacy notice must be given to individual customers at which two important times during the customer relationship? A. At account opening and annually unless certain conditions are met B. At account opening and with each loan application C. Twice a year and when the customer requests online access D. Monthly with each periodic statement or quarterly if a monthly statement is not provided ID:37F29AE4442B4B5F878DF773B1EE02C2

a. B is incorrect because the use of the model is optional. C is incorrect because it does provide financial institutions using it properly with a safe harbor. D is incorrect because the model does not make it any more or less likely that a consumer will opt out.

5. The Model Privacy notice was introduced in 2010. Which statement about the notice is true? A. It was created following consumer testing to provide customers with a format that makes a bank's privacy practices more understandable and more easily compared with other bank's practices B. It was mandatory for all financial service providers to use this model effective 1/2011 C. Using the model does not provide a financial institution with a safe harbor D. It makes it less likely that a customer will opt out ID:2791DD904F7C40BBB8FDE2E7AFE848ED

d. A, B, and C are incorrect because ''public information'' is any information that is lawfully made available to the general public, which includes information from state or local government records.

5. Title V of GLB requires financial institutions to safeguard the security and confidentiality of customers' ''nonpublic personal information.'' Which statement accurately defines the term ''nonpublic personal information''? A. Any information that is lawfully made available to the general public and personally identifiable financial information B. Personally identifiable financial information and information from state or local government records C. Information from state or local government records and information that is lawfully made available to the general public D. Account balance, debit card purchase information, and personally identifiable financial information ID:42337E81C72D4B9CBC436D9CA7BCF5B5

c. A is incorrect because a bank may permit the customer to opt out of sharing with all or just some affiliates. B is incorrect because opting out does not make the customer ineligible for products and services offered by an affiliate; it just means the affiliate may not send the customer marketing materials. D is incorrect because the FCRA does not allow a customer to opt out of sharing transactional or experience information with affiliates.

5. Which statement is true regarding opt out rights under FCRA? A. The opt out right is ''all or nothing''; if the customer opts out of sharing with one affiliate the customer must opt out of sharing with all affiliates B. If the customer opts out of sharing for marketing purposes the customer is no longer eligible for any products for services offered by an affiliate C. A bank that has multiple affiliates can provide an opt out notice that allows the customer to opt out of sharing with all or just one of those affiliates D. A customer may opt out of sharing transactional or experience information with affiliates ID:507CA7F7E5F246D7B638407372954C48

c. A is incorrect because the opt out under GLBA lasts indefinitely or until it is revoked by the customer. B is incorrect because the customer can opt out at any time. D is incorrect because the bank may ask the customer to opt out every 5 years under the FCRA rules.

6. Customers may prohibit a financial institution from sharing their nonpublic personal information under both the GLBA and the FCRA. Which statement concerning opt outs is true? A. Under the GLBA, a customer's decision to opt out lasts for 3 years B. The customer only has one opportunity to exercise his or her opt out rights C. If the customer does not opt out—either for Privacy Rules or for FCRA information sharing or marketing rules—the bank may share information D. Under the GLBA opt out, the opt out lasts indefinitely. If, on the other hand, a customer opts out from information sharing with affiliates under FCRA, that opt out is only good for two years (the bank may extend the two years as a matter of policy) ID:32414E36CEEE4726BFC1BF47A1BD57CB

b. A, C, and D are incorrect because the Fair Credit reporting Act governs the sharing of customer information for marketing purposes.

6. The sharing of information with affiliates for marketing purposes is governed by rules that fall under which regulation? A. The Gramm-Leach-Bliley Act B. The Fair Credit Reporting Act C. The Children's Online Privacy and Protection Act D. The Fair Debt Collection Practices Act ID:73A800A0EF144EC2817215171E9DAA8A

a. B, C, and D are incorrect because they are not examples of valid exceptions where the bank is permitted to share information.

6. There are exceptions when the law allows banks to share information about consumers and customers even though they have opted out. Which example is an exception? A. A bank may share information with outside companies that provide essential services to the bank, such as processing transactions or ordering checks B. A bank may disclose information that is publically available, such as reporting customer names and addresses to non-affiliated third parties C. A bank may disclose confidential customer information to the bank's training vendor for compliance training purposes D. A bank may disclose information to a 3rd party marketer that uses the information to market that vendor's own non-financial products and services ID:780FBCEFA60B49E2A6D84E41770A40F2

a. B is incorrect because the disclosures are required by law and are not just a response to consumer concerns. C is incorrect because the Right to Financial Privacy Act focuses on requirements for sharing consumer information with government agencies, not on general information sharing practices. D is incorrect because the disclosures are required by law and are not a response to increased competition.

7. All financial institutions should provide privacy disclosures to customers when they establish a relationship and annually thereafter. Why do financial institutions do this? A. The Gramm-Leach-Bliley Act requires that all financial institutions provide privacy disclosures to customers when they establish a relationship and annually thereafter B. Recent consumer concerns over how information is used by financial institutions has caused banks to revise certain policies and communicate them C. The Right to Financial Privacy Act requires that financial institutions provide privacy disclosures to customers on an annual basis D. Due to increased competition among financial institutions, banks and other institutions use these notices to keep customers informed and thus improve customer relations ID:EFC479198D15410BB6440437FC1DCC5B

c. A, B, and D are incorrect because they are not examples of valid exceptions where the bank is permitted to share information.

7. Banks are allowed under law to share information in certain circumstances even though the consumer or customer has opted out. Which example is an exception? A. A bank may share confidential customer information with outside vendors that provide services to the bank, such as office cleaning B. A bank may disclose information that is publically available, such as customer names and addresses, with nonaffiliated third parties C. A bank may disclose information to the bank's statement provider to generate customer statements D. A bank may disclose information to a 3rd party marketer that uses the information to market that vendor's own non-financial products and services ID:2E1FEDB3DE9641F89889AC59E8B98BCE

b. A is incorrect because the Act is not primarily a consumer privacy law, nor does it regulate the consumer reporting industry to ensure that credit information is reported accurately. C is incorrect because the Act is not primarily a consumer privacy law. D is incorrect because it is the purpose of the Right to Financial Privacy Act, not the Gramm-Leach-Bliley Act, to protect the financial records of individuals from unfettered access by the federal government.

7. You overheard coworkers summarizing their understanding of Title V of the Gramm-Leach-Bliley Act. Anita said, "The entire Gramm-Leach-Bliley Act is primarily a consumer privacy law." Troy stated, "Title V of the Act requires that financial institutions safeguard the security and confidentiality of customers' ''nonpublic personal information." Mona added that it "protects the financial records of individuals from unwarranted access by the federal government." Larry said, "It also regulates the consumer reporting industry to ensure accurate reporting of credit information.'' Which coworker(s) offered an accurate summary? A. Anita and Larry B. Troy C. Anita and Troy D. Mona ID:4F51230D2D444632A8DE072B0F649974

b. A, C, and D are incorrect because the conditions are that the bank has not changed its policies and practices with respect to the disclosure of nonpublic personal information since its most recent privacy notice to customers and the financial institution only shares information under one of the existing statutory or regulatory exceptions for sharing information.

8. The FAST Act, passed in 2015, modified the GLBA and allowed banks to forego sending their annual privacy notice if two conditions are met. One condition is that the bank does not share non-public personal information outside of the exceptions allowed under the act and the regulation. What is the other condition? A. The financial institution does not have affiliates B. The financial institution has not changed its policies and practices with respect to the disclosure of nonpublic personal information since its most recent privacy notice to customers C. The financial institution has posted the most current version of its privacy notice on its website D. The financial institution uses the model notice at all times ID:4DF25E4761A74DF7A3C47C592100B7E5

a. B is incorrect because a bank may permit the customer to opt out of sharing with all or just some affiliates. C is incorrect because opting out does not make the customer ineligible for products and services offered by an affiliate; it just means the affiliate may not send the customer marketing materials. D is incorrect because the FCRA does not allow a customer to opt out of sharing transactional or experience information with affiliates.

8. The Fair Credit Reporting Act (FCRA) requires that customers receive a notice regarding the right to opt out of the sharing of information with affiliates. Which statement is true regarding customer opt out rights under FCRA? A. A bank that has multiple affiliates can provide an opt out notice that allows the customer to opt out of sharing with all or just one of those affiliates B. The opt out right is ''all or nothing''; if the customer opts out of sharing with one affiliate the customer must opt out of sharing with all affiliates C. If the customer opts out of sharing for marketing purposes the customer is no longer eligible for any products for services offered by an affiliate D. A customer may opt out of sharing transactional or experience information with affiliates ID:DA5460D891F944B693F96DFEB85ECAAB

b. A is incorrect because the use of the model is optional. C is incorrect because it does provide financial institutions using it properly with a safe harbor. D is incorrect because the Model does not make it any more or less likely that a consumer will opt out.

8. Which of the statements regarding the Model Privacy notice introduced in 2010 is true? A. It was mandatory for all financial service providers to use this model effective 1/2011 B. It was created following consumer testing to provide customers with a format that makes a bank's privacy practices more understandable and more easily compared with other bank's practices C. Using the model does not provide a financial institution with a safe harbor D. It makes it less likely that a customer will opt out ID:895E12688C4940FC8EB37AEB528D6A24

b. A is incorrect because the customer can opt out at any time. C is incorrect because the opt out under GLBA lasts indefinitely or until it is revoked by the customer. D is incorrect because the bank may ask the customer to opt out every 5 years under the FCRA rules.

9. Both GLBA and FCRA contain provisions that give a customer the right to opt out of sharing some information. Which statement concerning opt outs is true? A. The customer only has one opportunity to exercise his or her opt out rights B. If the customer does not opt out—either for Privacy Rules or for FCRA information sharing or marketing rules—the bank may share information C. Under the GLBA, a customer's decision to opt out lasts for 3 years D. Under the GLBA opt out, the opt out lasts indefinitely. If, on the other hand, a customer opts out from information sharing with affiliates under FCRA, that opt out is only good for two years (the bank may extend the two years as a matter of policy) ID:77D554C254D14A4FB197099BE03B6CCB

c. A is incorrect because the right to opt out is the consumer's right and is directed at nonaffiliated third parties (not government agencies). B is incorrect because consumers do not have the right to opt out of information sharing with the institution they are directly doing business with, only nonaffiliated third parties. D is incorrect because the right to opt out is the consumer's right.

9. The (GLBA) privacy rules give consumers the right to opt out. Which description defines the right to opt out? A. A financial institution's right to deny government agencies certain consumer information B. A consumer's right to deny a financial institution certain information when applying for credit C. A consumer's right to deny a financial institution the ability to disclose to certain nonaffiliated third parties any nonpublic personal information D. A financial institution's right to deny nonaffiliated third parties access to certain consumer information ID:16F44192D4FD4C0B84F55E183EC122B5

c. A is incorrect because the right to opt out is the consumer's right and is directed at nonaffiliated third parties (not government agencies). B is incorrect because consumers do not have the right to opt out of information sharing with the institution they are directly doing business with, only nonaffiliated third parties. D is incorrect because the right to opt out is the consumer's right.

9. What is the correct definition of the term ''opt out'' as defined under the (GLBA) privacy rules? A. A financial institution's right to deny government agencies certain consumer information B. A consumer's right to deny a financial institution certain information when applying for credit C. A consumer's right to deny a financial institution the ability to disclose to certain nonaffiliated third parties any nonpublic personal information D. A financial institution's right to deny nonaffiliated third parties access to certain consumer information ID:F720B326652A4230B6CD48914BC33F6C