Ms. Cogswell's draft of regulations is expected to be ready for review within two weeks.

Public Act No. 02-40, was approved by the Legislature on May 8.

The department's privacy regulation is expected to be reviewed by the Assembly's Legislative Review Committee May 28, according to Leslie Wolfgang, counsel for the department.

Last year, the department had proposed a regulation to conform to privacy requirements under GLB, but research by the committee determined that the commissioner lacked the power to implement such regulations.

The regulation would track the National Association of Insurance Commissioners' privacy model regulation. It covers privacy of financial information but does not include privacy of health information.

The American Insurance Association, Washington, issued a statement saying that it supports the proposed regulation because it will help create uniform privacy regulations.

In a separate but related matter, Michael Moran, an AIA spokesman, said that pre-trial depositions are underway in a suit filed by insurance trade groups against Vermont privacy regulations.

The trade organizations contend the Vermont Department of Banking, Insurance, Securities, and Health Care Administration, exceeded its authority in promulgating privacy regulations that exceed the requirements of GLBA.