Columbus, Ohio-based Motorists Mutual Insurance Co. announced it is offering educational resources to commercial lines policyholders to help them comply with new federal regulations concerning data security and identity theft.
Motorists Mutual is giving commercial policyholders online access to a planning guide and frequently asked questions developed by Identity Theft 911 they can use to create “Red Flag” prevention and detection plans – essentially ID theft warning signs.
These new stipulations, part of the Fair and Accurate Credit Transactions Act of 2003, will be enforceable May 1. Identity Theft 911 is America’s leading provider of identity theft and data breach resolution and education services.
“Many small businesses just don’t have the human resources personnel to respond to this new government-mandated requirement,” says Grady Campbell, vice president of Motorists Property and Casualty Marketing. “Motorists understands it’s difficult to keep on top of these legislative changes, especially when so many business owners are concentrating on dealing with the current economic climate, so we’re here to help.”
As part of the “Red Flag regulation,” businesses that offer their customers installment payments – or “covered accounts” – will have to create a unique plan that recognizes telltale signs that a security breach has occurred and nonpublic information may be jeopardized.
The government defines a covered account as:
–An account primarily for personal, family or household purposes that involves or is designed to permit multiple payments or transactions, or;
–Any other account for which there is a reasonably foreseeable risk to customers or the safety and soundness of the financial institution or creditor from identity theft.
“Businesses that arrange financing for their customers will be subject to this regulation,” says Tamy Stephens, vice president, Motorists Commercial Lines. “That will cast a wide net, involving many different types of companies. In creating their Red Flag plan, they should still consult legal counsel or their business association to see how their business is specifically affected.”
Source: Motorists Mutual Insurance Company, www.motoristsgroup.com
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