Electronic Privacy Lapses Can Cause Fines, Bad Press Million-dollar fines get insurance executives' attention, especially when accompanied by adverse publicity requiring concerted damage control.
Allstate Insurance Company recently paid a $1 million fine to the California Department of Motor Vehicles for violating electronic privacy standards relating to driver information. Allstate employees improperly accessed the DMV records of friends and relatives, and committed multiple password and security breaches.
Insurers, brokers, agents and insurance-related service providers face electronic privacy concerns on two fronts.
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