Attorney General Andy Beshear today announced that Kentucky’s General Fund will receive $80,000 from a settlement with the Nationwide Mutual Insurance Company and its subsidiary, Allied Property & Casualty Insurance Company, concerning an October 2012 data breach.
The data breach was allegedly caused by the failure to apply a critical security patch. It resulted in the loss of personal information belonging to 1.27 million consumers.
Beshear said the company collected the personal data to provide insurance quotes to consumers applying for insurance.
Beshear said the settlement requires Nationwide to take a number of steps to both generally update its security practices and to ensure the timely application of patches and other updates to its security software.
The settlement involved 33 attorneys general. Neighboring states participating in the settlement include Illinois, Indiana, Missouri and Tennessee.
A total of 720 Kentuckians were affected by the data breach and received letters from the company. There is currently a private consumer protection class action lawsuit.