State Farm accused of violating privacy laws

Lawsuit claims the insurer improperly shared personal information

State Farm accused of violating privacy laws

Insurance News

By Ryan Smith

A proposed class-action lawsuit has accused State Farm of violating privacy laws.

The lawsuit claims that State Farm improperly shared the personal health information of five Illinois plaintiffs with Insurance Services Office (ISO), a company that conducts risk management analyses, according to a report by WGLT, a National Public Radio affiliate station.

All five plaintiffs were injured in accidents involving drivers covered by State Farm, WGLT reported. The lawsuit was filed on July 19 in Cook County, Ill. It accuses State Farm and ISO of violation of privacy, negligence and unjust enrichment.

Both federal law and the Illinois state constitution prohibit the sharing of an individual’s personal health information without permission, WGLT reported.

“The filing of a lawsuit does not substantiate the allegations within the complaint,” a State Farm spokesperson told WGLT. “State Farm will not comment on the specifics of what is alleged except to say we believe the litigation is without merit.”

A hearing on the litigation is scheduled for Nov. 16, WGLT reported.

The lawsuit’s accusations aren’t the only controversy currently impacting State Farm. The insurer has also drawn criticism for recently announcing that it would no longer write new homeowners policies in California. State Farm also recently hiked its auto insurance rates in Louisiana.

Have something to say about this story? Let us know in the comments below.

Related Stories

Keep up with the latest news and events

Join our mailing list, it’s free!