What is one primary purpose of the Gramm-Leach-Bliley Act?

The primary purpose of the Gramm-Leach-Bliley Act (GLBA), enacted in 1999, is indeed to enhance customer privacy. This legislation was designed to address concerns about the security and confidentiality of personal financial information held by financial institutions. Under the GLBA, financial institutions are required to establish privacy policies and practices, informing customers about how their personal information is collected, used, and disclosed, as well as giving them the ability to opt-out of certain information-sharing practices.

By imposing regulations that protect consumer privacy, the GLBA aims to ensure that sensitive financial data, such as credit card information and personal details, is safeguarded against unauthorized access and potential misuse. This focus on consumer privacy is significant in maintaining trust between customers and financial entities, encouraging a secure environment for financial transactions.

The other options pertain to aspects not significantly addressed by the GLBA. Reducing insurance premiums and eliminating high-risk insurance do not relate to the act's stipulations regarding privacy and customer information. Similarly, while standardizing insurance policies may relate to overall regulatory efforts in the insurance industry, it is not a focus of the Gramm-Leach-Bliley Act, which centers primarily on privacy measures.