I only get the password prompt when attempting a new installation such as new 
kernel images during pre-release and this is expected. Imagine a user leaves 
it's laptop for two minutes alone in a cafe or at home, anyone who immediately 
has access to it could install anything, it's much faster to reach since it's 
located in system settings on the desktop.
I can't test update-manager icon in the notification area since it never 
displayed.

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https://bugs.launchpad.net/bugs/912913

Title:
  Update-manager should not require authentication password in Precise

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