Topic: Privacy/Data Security/Cyber Risk

11th Circuit Asks Florida Supreme Court to Decide Whether Liability Policy Covers Injury Caused by Faxing Unsolicited Advertisements

The United States Circuit Court of Appeals for the Eleventh Circuit has asked the Florida Supreme Court to decide if liability insurance policies cover damages for violations of a federal law prohibiting the transmission of unsolicited advertisements by facsimile. 

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Urgent Information on Security Policies for Companies with Employee, Customer or Other Relationships with Massachusetts Residents

Edwards Angell Palmer & Dodge LLP has recently drafted two Client Advisories related to Massachusetts data security requirements.  Click here and here to view the Advisories.  They describe new requirements imposed by Massachusetts to be effective May 1, 2009 mandating procedures to be put into effect to protect personal information (defined below) of Massachusetts residents. 

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Adopted Proposal Aims to Collect and Aggregate Insurance Company Market Conduct Information into a Centralized Database

Last month the National Association of Insurance Commissioners (“NAIC”) adopted a proposal to develop a uniform system for collecting the market conduct information of insurance companies.  Market-conduct information includes, for example, how often a company cancels policies, delays claim payments or is in litigation. 

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Information Security Breaches and Appropriate Responses – New Mandatory Security Rule in Massachusetts and Privacy Policy in Connecticut

An increase in data breaches affecting various  industries, including banking, insurance and other financial services, has been profiled recently.  These developments require companies to anticipate problems, develop new responsive policies and protective procedures, and react quickly to near-crisis situations resulting from data breaches. 

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Michigan Court of Appeals Reinstates Regulations Prohibiting the Use of Credit Scoring in Home and Auto Insurance

In Insurance Institute of Michigan, et al. v. Commissioner, No. 262385, 2008 WL 190394 (Mich. Ct. App., Aug. 21, 2008), the appellate court opinion of Presiding Judge Helen N. White vacated a lower court’s permanent injunction against regulations prohibiting the use of credit scores in home and auto insurance. 

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Connecticut Passes Law on the Confidentiality of Social Security Numbers

On June 10, 2008, Connecticut Governor M. Jodi Rell signed into law “An Act Concerning the Confidentiality of Social Security Numbers,” Public Act No. 08-167 (the “Act”).  The Act, which becomes effective October 1, 2008, requires any person who collects Social Security numbers in the course of business to create a privacy protection policy. 

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Aggressive New Massachusetts Data Breach Law and Proposed Security Rules Require Company Action

Massachusetts has become one of the most aggressive states in the country regarding protecting personal data. It has adopted a new data breach law, a new document destruction law and proposed regulations that may represent one of the most far-reaching information security requirements anywhere in the U.S. Taken together, these will have major compliance implications and will likely require more rigorous, written security policies for any company doing business in Massachusetts or holding Massachusetts personal data, wherever located. 

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