Allstate Settles With DMV
Allstate Insurance has paid a one million dollar fine as part of a settlement with the Department of Motor Vehicles over privacy violations.
With the settlement, the DMV will now allow the insurance company to have electronic access to confidential drivers license and registration information. Allstate´s access to those records was cut off in January after audits found Allstate had failed to adequately monitor access to the records.
The settlement also calls for Allstate to implement new security procedures. Insurance companies routinely request driver and vehicle information when investigating accidents or signing up customers for good driver discounts.
The DMV audits found employees of the Illinois-based insurance company continuously and improperly looked up driver´s license and vehicle registration records. Allstate spokeswoman Lisa Wannamaker says the company was conducting its own investigation. She says that when notified of the security breaches, Allstate began using more rigorous procedures for handling confidential data.