LTD requesting passport information

My LTD is now requesting every page of my passport, including the sensitive ID page, for ‘verification of identity’. This seems so wrong to me. I do not feel comfortable sharing that. I sent them a copy of every single OTHER page (I think they’re looking for stamps from travel). I don’t understand why they need my passport information for identity. Can’t they accept a drivers license? Seems like maybe they’re trying to track me if they have the passport information? Am I in the right by telling them I can’t sent them my ID page as it’s a security /identity theft risk?

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I have no advice to offer with respect to that, however it doesn’t seem reasonable to ask for all that for proof of identity. I’d be suspicious that they think you are leaving the country for more than their allowable time periods.