NU Online News Service, Jan. 8, 12:43 p.m. – The American Council of Life Insurers, Washington, is suing to overturn Vermont privacy regulations, according to Victoria Fimea, senior counsel-litigation.
ACLI will file the suit in state superior court in Washington County during the week of Jan. 14, Fimea says.
Other life insurance, property-casualty and health insurance organizations have expressed interest in joining the suit, but none has made a definite commitment, Fimea says.
The ACLI suit will address whether the Vermont Legislature has given Elizabeth Costle, commissioner of the Vermont Department of Banking, Insurance, Securities and Health Care Administration, the legal authority to establish an “opt-in” provision in the Vermont privacy regulation.
The suit will also contend that the Vermont privacy regulation goes beyond what is required in the Gramm-Leach-Bliley Financial Services Modernization Act of 1999.
An opt-in provision requires insurers to get the active permission of customers before sharing information. An insurer might, for example, ask a customer to check a box allowing the insurer to share information.
Vermont now imposes an opt-in requirement on insurers that want to share information on matters such as creditworthiness and personal characteristics with other, non-affiliated companies.