Developments of Note
OCC Issues Opinion that Finds that Certain Provisions of West Virginia Insurance Sales Statute Should be Preempted
The OCC published a preemption opinion (OCC 01-22, the "Opinion"), in which it concluded that certain provisions of the West Virginia Insurance Sales Consumer Protection Act (the "WV Act") are preempted by Section 104 ("Section 104") of the federal Gramm-Leach-Bliley Act of 1999 (the "GLBA"). The Opinion responds to a request by the West Virginia Bankers Association, described in the June 13, 2000 issue of the Alert, that requested that the OCC determine that 8 provisions of the WV Act were preempted by Section 104. Section 104 bars state action that prevents or significantly interferes with insurance sales by depository institutions or their affiliates. Section 104, however, does not preempt state laws that are "substantially the same as but no more burdensome or restrictive than" any of 13 safe harbors described in the GLBA.
