ACLI Planning To Sue Vermont

The Vermont department says it established the opt-in provision to make standards for insurers similar to those set for banks, but ACLI argues that Vermont should follow the example set by other states and adopt on "opt-out" provision for personal financial information.

An opt-out provision would require a customer opposed to sharing of information to take active steps to get out of any information-sharing arrangements.

If an opt-out provision were in effect, an insurer would automatically be able to share information, unless a customer checked a box, wrote a letter, or took some other action to prevent sharing of information.

Depending on court dockets, the ACLI suit could take about a year to move through the judicial process, Fimea says.

ACLI is watching closely as California establishes its privacy guidelines, but the group has not decided whether to file suits in states other than Vermont, Fimea says.

The decision to sue is based entirely on the ACLI understanding of Vermont laws and not on any personal disagreement with Vermont regulators, Fimea notes.

In fact, the ACLI is now in contact with the department to seek guidance on how to meet the requirements of the regulation, Jack Dolan, an ACLI spokesman, says.