Connecticut department issues new data breach rules

Life insurance providers in Connecticut, along with other businesses in the state, now have to comply with new regulations regarding data breaches.

The Connecticut Insurance Department is requiring its licensees and registrants to report data breaches no later than five days after they happen. One reason is to make sure these businesses act quickly in resolving the matter while also informing affected consumers.

"The department also wants to make sure that there is an opportunity for the department to actively monitor the situation and guarantee those consumer protections throughout the process," CID said.

Data breaches are dangerous for a number of reasons, including identity theft. Crooks can use the information to open fraudulent accounts, which can damage a consumer's credit score.

One way consumers can make sure their accounts are safe is to closely monitor their savings account and credit card statements. Any unusual activity should be flagged and discussed with their financial service provider.

Consumers also have a right to check their credit report with each of the three national bureaus once a year. Doing so can show if an unauthorized account was opened in their name.

Posted in: Life Insurance

Life Insurance News: This article was published on 9-21-2010 at 9:29 am.

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