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Cyber/Privacy Update: Federal Date Breach Bill Passes House

Administrator — Fri, 11 Dec 2009 05:50:45 +0000

Now moving on to the U.S. Senate, the Data Accountability Bill (HR.2221) establishes the Federal Trade Commission as the agency responsible for defining, establishing, and enforcing security standards. However, the FTC does not have the power to enforce regulations on government, banks, savings and loan institutions, the insurance industry, and non-profits, which include colleges and universities. These types of organizations account for the bulk of the cyber and privacy breaches reported to date.

Additional bills recently approved by the U.S. Senate Judiciary Committee and now ready for the full Senate vote include:

The Data Breach Notification Act-Bill S.139 (sponsored by Senator Dianne Feinstein). Requires U.S. agencies and businesses that engage in interstate commerce to report data breaches to victims whose personal information “has been, or is reasonably believed to have been, accessed, or acquired” without “reasonable delay.” The bill also requires that notice be provided to “major media outlets” of a state if the number of state residents affected by the breach exceeds 4,000.

Personal Data Privacy and Security Act-Bill S. 1490 (sponsored by Senator Patrick Leahy). This bill also includes notification requirements as well as tighter criminal penalties for identity theft and willful concealment of a breach. It requires businesses to implement preventive security standards against threats to their databases.

Calco Commercial Insurance Solutions Can Mitigate Your Risks. We have solutions to transfer the exposures and protect your bottom line. Obtain a cyber liability insurance quote online or call (877)225-2699. Coverage available for companies based in California.

Insurance Claims to Rise due to Global Warming

Administrator — Mon, 26 Oct 2009 15:09:27 +0000

The United States Congress places measures to curb carbon dioxide pollution, as Global Warming is imminent. An example of this is increase in hurricanes in the Gulf Coast. It is estimated that in the next 100 years, a large part of the Gulf Coast will be under water. Insurance Companies are particularly at risk to exposures and financial loses. Each time there is a Hurricane loss it makes or brakes the companies profit. Chubb Group of Insurance Companies report a profit due to a weak hurricane season.

As citizens all we can do is conserve resources that we already use. The rest is up to world leaders in determining the proper and most efficient methods in controlling Global Warming.

Insurance Company: The Hartford Agrees to pay $1.3 million for price fixing!

Administrator — Fri, 23 Oct 2009 15:03:37 +0000

This is the first anti-trust law suit of it’s kind in the re-insurance industry. Attorney General Richard Blumenthol prosecuted the case. He says “the prices of the reinsurance products were inflated by a third or more.

The suit against co-conspirator, Guy Carpenter, was filed in 2007. The Attorney General alleges that the company conspired with dozens of reinsurers to illegally increase costs for insurance companies and consumers nationwide for over 25 years.

The suit alleges that Guy Carpenter, enlisted companies in a widespread pay-to-play scheme through which Guy Carpenter would funnel lucrative business to select reinsurers in exchange for excessive fees and other benefits from these reinsurers.

Reinsurers agreed not to compete against the prices and terms set by Guy Carpenter in exchange for highly profitable business, Blumenthal alleges. Reinsurers who refused to participate were foreclosed access to potential business.

This is a problem for all of us. My question is why and how is it that Guy Carpenter or the executive at The Hartford have managed to maintain their insurance licenses. The operate nationally and globally. Isn’t there a Department of Insurance from at least one state that is willing to peruse legal action against them? All I see in California is Steve Poisner who is the commissioner, constantly going after the little guy. How about the large companies, Steve? Are you worried about the future outcome of your political career?

The lesson learned from this article is: if you have a lot of money and decide to rip off Americans for 25 years – you can!

Los Angeles Fires 42% Under Control

Administrator — Sat, 05 Sep 2009 16:57:30 +0000

The Los Angeles fire is 42% under control thanks to the brave firefighters who risked their lives. Since the fire started it has burned 148,000 acres, 64 homes, 28 out buildings and 4 commercial properties. It took 5,000 firefighters to combat the flames. Increased humidity and the slowing winds help firefighters combat the forest fire. It is believed that the fire was started by an arsonist.

The death of two firefighters and the discovery of potential excellerents have lead the authorities to launch a homicide investigation. The arsonist could face the death penalty is found guilty.

Car Insurance Fraud at its Highest Due to Bad Economy in California

Administrator — Wed, 02 Sep 2009 17:50:42 +0000

Steve Poizner, the California Department of Insurance Commissioner has announced that recently compiled statistics have shown an increase in suspected auto arson and auto theft fraud referrals last year. Financially desperate California residents and scam artists may be committing more automobile insurance fraud to cash in on insurance money. Department of Insurance investigators have seen an increase in suspected automobile arson and fraud cases. There has been an alarming 31 percent increase in suspected vehicle arson fraud cases in 2008 as compared to cases in 2007. The Department has received almost 300 additional suspected vehicle theft and vehicle arson cases statewide in 2008 than in 2007.

The California Department of Insurance receives referrals of suspected fraud cases from insurance companies. Local law enforcement agencies are directly from consumers. Department enforcement officers carefully examine every case that is brought to the Department’s attention. They are working very hard to crack down on anyone attempting to skirt the law for financial gain.

Almost 1900 insurance fraud related arrests have been made by the Department of Insurance’s enforcement division since Commissioner Poizner took office in 2007.

Chysler to Accept Product Liability Claims from “Old Chrysler”

Administrator — Tue, 01 Sep 2009 01:40:38 +0000

The Federal Government has received a declaration from the new Chrysler Group stating that product liability claims on vehicles will be honored. Chrysler was among the U.S. automakers which received tax payers funding.

Some say, it’s not fair for tax payers to bail out the auto makers for producing mediocre vehicles. What would of happened if Chrysler disappeared?

AIG, Former CEO and CFO Agree to Binding Arbitration

Administrator — Tue, 01 Sep 2009 01:17:28 +0000

The former AIG CEO and CFO have agreed to a binding arbitration. This was announced on August 31, 2009. Although, the terms have not been made public just yet. AIG is expected to make the announcement of the agreement public later today.