| My response:
In California, and prior to litigation, policy limit information is generally protected by the Insurance Information and Privacy Protection Act, Ins C §§791 et seq.
Therefore, an insurance company has no duty, prior to the filing of a lawsuit by a third party (the other person involved in the accident), to tell a third party claimant information concerning policy limits of the insured. [Griffith v State Farm Mut. Auto. Ins. Co. (1991, 2nd Dist) 230 Cal App 3d 59, 281 Cal Rptr 165] However, in a third party case, if a policy limits demand is made or the insured can be released from the action within policy limits, the insurance company has an obligation to its insured under the covenant of good faith and fair dealing to make that kind of settlement. Thus, if the plaintiff’s attorney demands to see the policy to make sure that the demand is appropriate in circumstances where an aggregate limit or a per occurrence limit may affect the demand, the insurance carrier ought to produce the policy.
This is why your insurance company is asking you for your permission to divulge your insurance policy limits information - - in an effort to not involve you in the litigation process, and in an attempt to settle.
In summary, it won't hurt you to allow your insurance company to divulge this information, and it could keep you out of litigation by doing so - - where, by the way, the law then allows for discovery of this information anyway.
IAAL | 
I recieved a letter from my insurance it says.
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