Committee hears that H.211 may exempt some insurers from deletion requirements

A committee member updated the Vermont House Committee on Commerce and Economic Development April 16 on H.211, legislation addressing data brokers and consumer deletion rights.

The member said testimony was mixed and noted a line of inquiry asking whether insurance companies should be carved out of deletion requirements because they need certain data to underwrite policies. "There was some follow-up from the chair of Parks and Google, requested information from the insurance companies regarding exactly what information they need to underwrite policies," the member reported.

Consumer Reports, the member said, provided testimony in the opposite direction, arguing that a great deal of data held by brokers is inaccurate and that state regulation would align Vermont with other regional efforts. The member described the committee conversation as leaning toward allowing an exemption in cases where federal laws such as the Fair Credit Reporting Act or the Gramm-Leach-Bliley Act regulate the data.

Members asked staff to monitor draft language for a specific user or data exemption and to track attorney general input on whether in-state distinctions are legally defensible. The committee did not take votes; members asked for additional details about which specific data elements insurers consider essential and how deletion rules would interact with financial services or underwriting needs.

Next steps: staff will collect follow-up materials from insurers, legal counsel, and Consumer Reports and circulate proposed amendment language for committee review.