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November 29, 2001 at 07:00 PM
NU Online News Service, Nov. 29, 4:33 p.m. – Insurers are weighing a legal challenge to privacy regulations recently established by the Vermont Department of Banking, Insurance, Securities & Health Care Administration.
Insurers argue that the rule exceeds the department’s authority and the dictates of the Gramm-Leach Bliley Act of 1999 because an opt-in would be required for non-affiliates sharing information such as credit worthiness and personal characteristics.
The department has maintained that it is trying to establish standards similar to those the state requires for banks.
The American Council of Life Insurers, Washington, says that an initial decision to legally challenge the decision has been made and a final decision should be made by the end of the first week in December. Among the options that need to be considered are whether the challenge would be a federal or state legal challenge. If a legal challenge is pursued, it would seek a temporary restraining order or an injunctive relief.
At press time, the American Insurance Association, Washington, was scheduled to hold a conference call for members Nov. 29, to determine whether to sue to prevent implementation of the regulation with a final decision also expected at the end of the first week in December.
