Kemper Insurance has proposed to settle a class action stemming from two data breaches in a deal valued at about $17.6 million.
The dual breaches could have compromised the personal information of an estimated 6.1 million customers and employees. The breach incidents occurred on December 14, 2020 and March 25, 2021 and were announced by the insurer in March and May 25, 2021.
The class action and settlement also involve Infinity Insurance Co., a subsidiary that sells nonstandard auto policies and was acquired by Kemper in 2018. Kemper offers home, life, auto, business, property and umbrella insurance.
The settlement has been accepted by the plaintiffs but must still be approved by Judge Martha M. Pacold of the federal court for the Northern District of Illinois.
Under the terms of the negotiated settlement, all affected customers will be provided automatic access to 18 months of credit monitoring and financial account protection without the need to file a claim.
Additionally, every class member has the opportunity to make a claim for up to $10,000 in reimbursement for out-of-pocket losses, including for up to six hours in lost time. Additional benefits in the amount of up to $50 are available for California members of the class settlement who alleged violations of California’s Consumer Privacy Act.
Those eligible for the settlements include all citizens who were sent letters by the insurers notifying them that their personal data was compromised. The personal information at risk included names, addresses, Social Security numbers, driver’s license numbers, medical leave information, and workers’ compensation claim information.
*This story ran previously in our sister publication Insurance Journal.