Opinion ID: 1265857
Heading Depth: 2
Heading Rank: 3

Heading: Insurer's Duties Under the West Virginia Unfair Trade Practices Act

Text: The remaining question before us poses the issue of whether the Privacy Rule and the GLBA privacy provisions affect the duties of an insurance company under the West Virginia Unfair Trade Practices Act (hereinafter referred to as UTPA). W.Va.Code §§ 33-11-1 to 33-11-10 (Repl. Vol. 2003). Mr. Martino asserts that the provisions of UTPA require a free and open exchange of information between a claimant and an insurance company in the area of insurance claim settlement. As a result, Mr. Martino contends, state law requires disclosure of otherwise protected information because release of such information [t]o comply with Federal, State or local laws is an exception under the Privacy Rule and the GLBA. 16 C.F.R. § 313.15(7)(i), 15 U.S.C. § 6802(e)(8). This argument overlooks the following express provision of the UTPA regarding treatment of consumer information by insurer's: (12) Failure to maintain privacy of consumer financial and health information. Any licensee who violates any provision of the commissioner's rule relating to the privacy of consumer financial and health information shall be deemed to have violated the provisions of this article: Provided, That any licensee who complies with the provisions of this subsection, a commissioner's rule, or a court order shall not be deemed to be in violation of any other provisions of sections three [§ 33-11-3] and four [§ 33-11-4] of this article by their compliance with this subsection, the rule or court order. For purposes of this subsection, licensee means all licensed insurers, producers and other persons licensed or required to be licensed, or authorized or required to be authorized, or registered or required to be registered pursuant to this chapter. W.Va.Code § 33-11-4 (2002) (Repl. Vol. 2003). The standards of the Privacy Rule, as discussed earlier in this opinion, limit disclosure of otherwise protected information to specific exceptions, which include compliance with judicial process. West Virginia Code § 33-11-4(12) makes it explicit that compliance with court orders is an additional exemption to those encompassed within the Privacy Rule. When presented with such clear legislative intent, this Court is duty bound to apply the statute as written. Syl. Pt. 5, State of West Virginia v. General Daniel Morgan Post No. 548, V.F.W., 144 W.Va. 137, 107 S.E.2d 353 (1959). Thus, an insurance company is obliged to release nonpublic personal information in response to discovery pursuant to the judicial process exception of the Privacy Rule and in compliance with court order pursuant to West Virginia Code § 33-11-4(12), provided that the insurance company has had the opportunity to inform the court when the information is unnecessary or nondisclosure is warranted on other legal grounds.