Another data breach -- May affect some of your FE customers

[LostDollar]

At Landmark Admin

Landmark is a Texas-based company that provides third-party administrative solutions for life insurance carriers

Landmark Admin Reports Data Breach, Exposing 800,000 Users' Information

Landmark Admin filed a notice of data breach last week after detecting suspicious activities on its system in May. Landmark is a Texas-based company that

www.insurancejournal.com

Bolding is mine, it is the reason I posted this here:

"Landmark said in the filing that the incident affected information from individuals who were were a producer, policyowner, insured, beneficiary, or payor of Liberty Bankers Insurance Group. LGIB subsidiaries include:

• American Monumental Life Insurance Company
• Pellerin Life Insurance Company
• American Benefit Life Insurance Company
• Liberty Bankers Life Insurance Company
• Continental Mutual Insurance Company
• Capitol Life Insurance Company"

 

[theinsuranceman]

Any company in any industry should be fined heavily for their carelessness, and forced to indemnify anyone who is hurt by this.

 

[LostDollar]

Any company in any industry should be fined heavily for their carelessness, and forced to indemnify anyone who is hurt by this.

(Caveat, not an agent)

Your post raises an interesting question.

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Please note the company where the leak occurred was not the carrier itself, it was a third party company.

This is like:

The Move-It breach which affected Social Security and many retirement financial organizations (I think I got three different notifications stemming from that one)

And the Change breach which affected UHC policyholders.

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If insurance carriers have had their own IT systems evaluated and secured and they have made reasonable inquiries about the system security of third party organizations they use to assist in the administration of their business affairs, what liability do they actually have when one of these breaches occurs?

 

[jdeasy]

They use the TPA’s to have someone to blame.

Landmark is terrible. But they are far from the worst TPA.

 

[theinsuranceman]

(Caveat, not an agent)

Your post raises an interesting question.

--------------------------------------------------------------

Please note the company where the leak occurred was not the carrier itself, it was a third party company.

This is like:

The Move-It breach which affected Social Security and many retirement financial organizations (I think I got three different notifications stemming from that one)

And the Change breach which affected UHC policyholders.

-------------------------------------------------------------

If insurance carriers have had their own IT systems evaluated and secured and they have made reasonable inquiries about the system security of third party organizations they use to assist in the administration of their business affairs, what liability do they actually have when one of these breaches occurs?

In that case the TPA should have to pay and indemnify.

 

[LostDollar]

In that case the TPA should have to pay and indemnify.

That's what I experienced with the Move-It and Change breaches and I assume it will be the same with the Landmark Admin case.

An agent with LBL clients that can see a copy of the Landmark letter would have to comment on that.