Privacy and consumer protection enforcement actions against insurance companies.
14
Total Actions
$42.9M
Total Fines
The FTC filed a complaint and obtained a temporary restraining order against six defendants operating a deceptive health care scheme that impersonated government and insurance carriers to sell fake comprehensive health plans. The defendants allegedly charged consumers without express informed consent, failed to disclose material terms including cancellation processes, and misled consumers into paying for inadequate coverage that left many with substantial medical debt. The FTC seeks refunds for affected consumers and alleges violations of the FTC Act, Telemarketing Sales Rule, Impersonation Rule, and Gramm-Leach-Bliley Act.
Texas Attorney General Ken Paxton issued Civil Investigative Demands to Blue Cross Blue Shield of Texas and Conduent Business Services LLC as part of an investigation into a massive data breach at Conduent that exposed the protected health information of approximately four million Texans. The breach occurred between October 21, 2024 and January 13, 2025, affecting Texas Medicaid recipients and other residents. The AG's office is investigating the security failures and compliance with Texas law.
New York Attorney General Letitia James secured $14.2 million in settlements from eight car insurance companies for failing to implement reasonable data security controls, leading to data breaches that exposed over 825,000 New Yorkers' personal information including driver's license numbers and dates of birth. Hackers exploited vulnerabilities in the companies' online quoting tools to steal the data, which was later used to file fraudulent unemployment claims during the COVID-19 pandemic. The settlements require the companies to pay penalties and implement enhanced cybersecurity measures including data inventory maintenance, multifactor authentication, and improved threat response procedures.
$14.2M
Texas Attorney General Ken Paxton has opened an investigation into Superior Insurance for allegedly using private investigators to spy on lawmakers, journalists, and private citizens with pending insurance claims. The company's CEO admitted to these actions at a legislative hearing, citing concerns about blackmail and leveraging information to secure state contracts and avoid paying legitimate claims, particularly for medical bills.
New York Attorney General Letitia James reached a $975,000 settlement with Root Insurance Company over a data breach that exposed the personal information of approximately 45,000 New York residents. The breach, discovered in January 2021, stemmed from Root’s inadequate data security measures, including unencrypted driver’s license numbers in quote PDFs and insufficient controls against automated attacks. In addition to the monetary penalty, Root must implement enhanced data security measures including a comprehensive information security program, data inventory, and monitoring systems.
$975K
New York Attorney General Letitia James filed a lawsuit against National General Holdings Corp and Allstate Insurance Company for failing to protect personal information and notify consumers of data breaches. The breaches exposed driver's license numbers of over 165,000 New Yorkers due to poor cybersecurity. The AG is seeking monetary penalties and an injunction.
New York Attorney General Letitia James filed a lawsuit against National General and Allstate Insurance Company for two data breaches in 2020 and 2021 that exposed the driver’s license numbers of over 165,000 New York residents. The AG alleges National General failed to implement reasonable data security measures, did not notify consumers or state agencies of the first breach, and left systems vulnerable to a second larger breach after Allstate took over data security operations. The AG is seeking monetary penalties and an injunction to prevent further violations.
Texas Attorney General Ken Paxton filed a lawsuit against Allstate and its subsidiary Arity for unlawfully collecting, using, and selling driving data from over 45 million consumers without consent. The data, which includes precise geolocation information, was used to justify insurance premium increases. This action alleges violations of the Texas Data Privacy and Security Act (TDPSA).
New York Attorney General Letitia James settled with auto insurance company Noblr for $500,000 over a data breach that exposed personal information of approximately 80,000 New York residents. The breach, discovered in January 2021, was caused by Noblr’s failure to implement reasonable data security safeguards, including exposing plaintext driver’s license numbers and failing to monitor site traffic for malicious activity. In addition to the monetary penalty, Noblr must enhance its data security program, implement monitoring systems, and maintain a data inventory of private information.
$500K
New York Attorney General Letitia James and New York State Department of Financial Services (DFS) Superintendent Adrienne Harris settled with auto insurers GEICO and Travelers for $11.3 million combined over data breaches that exposed over 120,000 New Yorkers’ personal information, including driver’s license numbers and dates of birth. The breaches stemmed from insufficient data security controls, allowing hackers to steal information and file fraudulent unemployment claims during the COVID-19 pandemic. The settlements require the companies to pay penalties and implement enhanced cybersecurity measures including comprehensive information security programs, data inventories, and improved access controls.
$11.3M
Connecticut Attorney General William Tong announced a settlement with Integrity Admin Group, Inc. for deceptive home warranty marketing practices. The company will pay $10,000 and cease misleading tactics such as creating false urgency and sending fake checks. The settlement includes injunctive relief to prevent future deceptive practices.
$10K
Premera Blue Cross suffered a data breach in 2014 that exposed personal and medical information of 10.5 million consumers. As part of a multistate settlement, Premera agreed to pay $10 million in civil penalties and implement security improvements and a compliance program. California will receive over $1 million from the settlement.
$10.0M
Aetna, Inc. settled with New Jersey and other states over allegations that it improperly disclosed protected health information of thousands of individuals through mailings that revealed HIV/AIDS status and AFib study participation. The settlement requires Aetna to implement policy reforms, hire an independent consultant, and pay a civil penalty of $365,211.59 to New Jersey.
$365K
Nationwide Insurance settled a multi-state investigation into a 2012 data breach that exposed personal information of 1.27 million consumers due to failure to apply a security patch. The settlement requires enhanced security practices, hiring a Technology Officer, and a $5.5 million payment to the states.
$5.5M