Your Source for Up-To-Date News and Research on the Collision Repair Industry
click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email
SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor
Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide
Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...
Feedback
Letter to the Editor
Wednesday March 19
California DMV and Allstate Insurance Reach Agreement Regarding Access to Confidential Records
Allstate Insurance Company has paid a fine of $1 million to the California Department of Motor Vehicles, and the company's access to confidential DMV records was suspended until March 17, 2003, as part of a settlement involving Allstate's failure to adhere to state laws and regulations concerning access to and use of confidential records.State audits conducted at seven Allstate claims offices throughout California determined that there was a failure to adequately monitor and regulate access to confidential DMV driver license and vehicle registration records.
Allstate has been in negotiations with DMV since their electronic access to information was inactivated on January 16, 2003. Allstate has cooperated fully with DMV to ensure that their procedures will be acceptable for safeguarding confidential information that they may lawfully request from the Department.
Under the terms of the settlement agreement:
- Allstate paid a $1 million fine and reimbursed the DMV for attorney's fees, costs related to the state audits, and will pay for additional audit costs over a four year probationary monitoring period.
- Allstate's access to DMV records was suspended until March 17, 2003, and a further period of no access will be stayed provided that Allstate complies with all DMV regulations and State laws.
- Allstate has implemented comprehensive security reforms in its offices throughout the state that meet the DMV's information security requirements.
Explaining just what the agreement with Allstate Insurance will mean, DMV Director Steven Gourley said, "These important reforms establish Allstate as a model for others to follow with respect to DMV security and confidentiality."
"Allstate takes its obligation to safeguard the confidentiality of consumer information very seriously," said Terry Lewkoski, director for Allstate's California claims operation. "We are committed to continue working with the DMV to ensure that we continue to strengthen our processes."
Gourley confirmed that "the reforms put in place by Allstate are designed to ensure that there is neither a deliberate nor inadvertent breach of confidential DMV records, thereby protecting the public's right to this confidentiality."
©2003 Collision Repair Industry INSIGHT
All Rights Reserved
FEATURED
LINKS:
INSIGHT Supports the NABC!
Do You?