TJX Settles With Banks Over Data Breach

WSJ(12/19)

TJX Cos. settled a lawsuit brought by a group of New England banks over a data breach that resulted in the theft of millions of credit-card numbers.

Terms of the settlement weren't disclosed, but TJX said the amount paid is covered by a $107 million reserve taken in the second quarter. The Framingham, Mass., retailer will pay part of the costs and expenses the banks incurred, not including attorney fees.

Banks said numbers and personal data stored in TJX's computers on as many as 100 million cards were stolen by hackers, who remotely tapped into the computers beginning in July 2005. The case is the largest of its kind. TJX has denied wrongdoing.

The settlement, which comes about six months after the suit was filed in federal court, is expected to give a big boost to a separate agreement proposed last month between TJX and Visa Inc. That proposed settlement, under which TJX has agreed to pay as much as $40.9 million for losses incurred by banks, is contingent on acceptance by banks representing at least 80% of the Visa-card accounts involved.

It isn't known how many banks have decided to accept the Visa proposal, the deadline for which is today. Under terms of the federal lawsuit settlement, the banking associations of Massachusetts, Maine and Connecticut will recommend that their members accept the Visa proposal. The associations represent approximately 300 member banks, many of which are Visa issuers. Banks accepting the deal forfeit the right to sue TJX.

At least one bank, Alabama-based Amerifirst Bank Inc., has declined to participate in the federal-court settlement. It has the option under a federal court ruling last week to pursue its case against TJX in Massachusetts state court.

Officials of Amerifirst Bank couldn't be reached to comment last night. In an interview last week, Joseph Whatley Jr., an attorney representing Amerifirst, said it was his client's intention to continue its suit in Massachusetts. He said Amerifirst and a Tennessee bank he represents in the case would receive less than three cents for every dollar under terms of the agreement between Visa and TJX.

TJX still faces state and federal investigations into the breach.

Confused by Actual Cash Value and Replacement Cost Value?

Here is an interesting article that appeared in the Anderson-Kill Loss Advisor.

ULLICO pays UAW $2,500,000 UL Claim

We were instrumental in having Ulico Casualty pay a difficult Union Liability claim. Ulico stepped up to the plate and paid a very difficult claim and helped our client.

We are lucky to have good clients and good insurance companies to represent.

AIG's Lexington Insurance Adds Social Services Practice

Lexington Insurance Company has formed AIG Human & Social Services Risk Solutions, a new industry practice to provide insurance and risk management products to the social services sector.

The new industry practice serves for-profit and non-profit organizations in the social services industry, including alcohol and drug rehabilitation clinics, adult day care, mental health facilities, community service organizations, counseling service organizations and crisis centers.

AIG Human & Social Services Risk Solutions provides coverage for the entity, its volunteers and employees. The group's portfolio of insurance includes professional liability, general liability, directors and officers liability, workers' compensation, property, inland marine, automobile, employee benefits liability, sexual abuse/molestation liability, crime/fidelity, umbrella liability, employment practices liability, accident and health, and boiler and machinery.

Frank T. Nosek, will serve as practice leader for the new organization. In this capacity, Nosek will coordinate with AIG's Program Administrators and brokers to facilitate access to AIG's product portfolio.

Visit from AIG

Max Perkins of AIG will be stopping by our office about 2:00 on Thursday, December 13th. If you have any questions about NetAdvantage or any other AIG products, this would be a good opportunity to get some answers.

Information on Virginia's New FR-44 Requirement

Effective January 1, 2008, Virginia law requires a person convicted of certain driving violations to purchase a liability insurance policy with coverage double the minimum limits. This means those convicted of driving under the influence of alcohol or drugs or driving after the forfeiture of their drivers licenses must purchase limits of at least $50,000 for injury or death to one person, $100,000 for injury or death of two or more people, and $40,000 for property damage. In November, the Virginia Division of Motor Vehicles sent a “Notice of Requirement” to those who fit into one of these categories, advising them that they must have an insurance company file a FR44, a new form showing they have at least $50/$100/$40 coverage. (Another new form is FR46 which companies submit to the DMV when coverage is cancelled.) It is the responsibility of the driver – not the company or the agent – to see that these limits are in effect. Although it is permissible for companies and agents to advise insureds of the new requirement, it is not mandatory. Another point in which you may be interested is that you can mandate limits higher than those required, and you may want to do so, especially if your companies do not have a $50/$100/$40 filing. Some agents already have procedures that require their insureds to purchase limits higher than those required by law. Electronic copies of the DMV forms have been sent to companies, but the companies can require agents to complete the forms if they prefer.

Political Campaign Product

Looks like AIG and All Risk have finally gotten their act together. That's the good news. The bad news is that they are making it easier for our competition to market this to our prospects. Here is all the information you need to get started.

Brochure

Application

This is Why CYBER LIABILITY COVERAGE is Important

New York Appeals Court Ruling Upholds Award Of Punitive Damages For Unintentional Data Breach

A recent decision by the Appellate Division of the New York Supreme Court, upholding a jury award of punitive damages for unintentional privacy breaches, should serve as a warning flag for all companies - especially those in the health care sector - that failure to implement and maintain appropriate policies for the handling of personal data may result in liability. To read the entire article CLICK HERE.

More Changes at Chubb

Dennis Jones is our new contact for Chubb & Son’s Accident & Health Division. Dennis will be located in their NJ – Whitehouse Station office.

He will handle the following products: Basic AD&D· Voluntary AD&D· Business Travel · Special Risk· Employer Stop Loss

Dennis, can be reached at:

Chubb Accident & Health
202 Hall’s Mill Road
Post Office Box 1600
Whitehouse Station, NJ 08889-1600
(908) 572-2279 · Office
(908) 572-4039 · Fax

e-mail: dennisjones@chubb.com

Joyce Trimuel - New Chubb Marketing Manager

As you are aware, Stephen Oh was promoted and is now the Branch Manager for Chubb's Cleveland Office. He is doing well and sends his warmest regards. I am pleased to announce that Joyce Trimuel has accepted the DC Marketing Manager's role. She previously was the Underwriting Manager for Chubb Specialty residing in our Itasca, Illinois office.

Joyce began her career with Chubb Executive Protection in 1999 in Chicago, IL. Joyce served in the Itasca, IL office from 2000 to 2002 as an underwriter and agency coordinator. She then transitioned back to the Chicago office where she was a senior underwriter and unit manager for the Executive Protection Practice. In 2005, Joyce was promoted to practice leader of Itasca’s Executive Protection Practice. In January 2007 she assumed responsibility for all Itasca's specialty lines as the Chubb Specialty Underwriting Manager.

IRS Updates Standard Mileage Rates

The U.S. Internal Revenue Service (IRS) has issued Revenue Procedure 2007-70 which provides annual optional standard mileage rates for employees, self-employed individuals, or other taxpayers to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving expense purposes. This revenue procedure updates Revenue Procedure 2006-49. The new rates for 2008 are 50.5 cents per mile for business.

Interesting Article About Appalachian Healthcare

I found this article on the AFL-CIO Blog interesting. It is about the nurses strike. What would John L. Say?

Who Moved My Cheese?

Here is a brief synopsis of the book WHO MOVED MY CHEESE by Dr. Spencer Johnson.


The heart of "Who Moved My Cheese" is a lengthy fable. It concerns four characters, two mice named "Sniff" and "Scurry" and two "littlepeople" named "Hem" and "Haw." These "littlepeople" are just scaled-down humans. All four of these characters operate in the same maze. They seek cheese. Then someone, some unseen hand, moves the cheese. The mice sniff and scurry, you see, and find where the cheese has gotten to. The littlepeople hem and haw, and therefore find themselves way behind in the search for the cheese. Slowly, they learn how to find the cheese.

What type are you? Regardless of your type, change is inevitable. Here is an interesting article on DEALING WITH CHANGE.

Business Interruption in Middle East

Does anyone have a market for this?