Friday, July 02, 2010

Friday Updates: Privacy and Solvency

FoIB Rick B tipped us that Anthem's recent security breach may have been a bigger deal than originally thought. Now comes word from California insurance blogger David Fluker that "more than 200,000 affected so far by the security breach of the Anthem Blue Cross Online Application Tracker."

Indeed, he points us to an article in the Orange County (CA) Register that reports "the confidential information was briefly accessed, primarily by attorneys seeking information for a class action lawsuit against the insurer." Ironically, these erstwhile "officers of the court" apparently jiggered the system in support of their own lawsuit against Anthem's (WellPoint's) online privacy standards.

Meanwhile, Mr Fluker (who's also an agent), tells us (and his clients) that, while "this security breach does not impact HIPAA applications (nor small group) ... This PDF file contains the full application information including PHI and financial information." Kinda scary. Interested parties should plan to check for updates at David's blog.

On the other side of the continent. FoIB Jeff M reports that Virginia's Department of Insurance has been hammering out a "negotiating agreement ... for the potential purchase of Shenandoah Life Insurance Company ... The 90-day exclusivity agreement with Prosperity Life Insurance Group, LLC, which may be extended, will afford the parties the opportunity to negotiate a definitive purchase agreement."

This is potentially a great outcome, because it puts the interests of the policyholders first (unlike some others).

The sale, and subsequent recapitalization, isn't yet a "done deal," but the sign are encouraging.
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