What is the core function of the Insurance Information and Privacy Protection Act?

The core function of the Insurance Information and Privacy Protection Act is to regulate the collection, use, and disclosure of personal information in insurance. This legislation is essential for protecting consumers' private information as it establishes guidelines and requirements that insurance companies must adhere to regarding how they handle personal data. By implementing these regulations, the Act ensures that individuals' sensitive information is safeguarded and only used in compliance with privacy standards. Overall, it aims to enhance consumer trust in the insurance industry by promoting transparency and responsible handling of personal data.

Understanding this aspect of the Act is vital for those involved in insurance as it directly impacts how they manage customer information and the legal compliance required in their operations.