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Insurer Reaches Settlement with Vermont AG

PRIVACY LAW—U.S.

January 25, 2011

A Connecticut health insurance company will pay $55,000 to settle claims that it failed to inform customers about a data loss incident, the Connecticut Law Tribune reports. In a settlement reached with the Vermont Attorney General's Office, Health Net and Health Net of the Northeast agreed to the sum and to a requirement to file audit reports with the state for the next two years, the report states. In 2009, the company discovered that an unencrypted portable hard drive containing customers' sensitive information was missing. The company waited six months before informing customers.
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