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Motorists helping businesses guard against identity theft, comply with new federal regulations

COLUMBUS, Ohio (April 22, 2009) - Motorists Mutual Insurance Co. is on the leading edge in helping businesses respond to and recover from...
April 22, 2009

COLUMBUS, Ohio (April 22, 2009) - Motorists Mutual Insurance Co. is on the leading edge in helping businesses respond to and recover from data security breaches, and now the company will offer educational resources to commercial lines policyholders to help them comply with new federal regulations concerning data security and identity theft.

Motorists Mutual (www.motoristsgroup.com) 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."

"Motorists is the industry leader in helping businesses protect customer information," Campbell says. "Our efforts began when we were the first to offer our Security Breach Response service and have continued to grow with our Security Breach Reimbursement and now this assistance with putting a plan in place to identify warning signs of identity theft."

About Motorists Mutual Insurance Company

Motorists Mutual is the lead company in The Motorists Insurance Group based in Columbus, Ohio. The group of companies is composed of nine property and casualty, life and brokerage companies that operate in 38 states. At year-end 2007, the group of companies had $622 million in net written premium and $702 million in policyholder security funds. For more information, visit www.motoristsgroup.com.

Motorists Mutual was established in 1928. It is a major regional insurer that writes property and casualty lines of business. Motorists' products are sold by a network of more than 4,000 independent agents in a market of more than 46 million people.

About Identity Theft 911®

Protecting over 12 million households, Identity Theft 911 is a leader in identity theft resolution, providing innovative, enterprise-level fraud solutions and consumer education to Fortune 500 companies, many of America's largest insurance companies, corporate benefit providers and a wide spectrum of financial institutions. For more information, visit www.identitytheft911.com.

For more information, contact:
Paul Richards
Assistant Vice President, Corporate Communications & Advertising
(614) 225-8205 (W) (740) 881-0203 (H)
paul.richards@motoristsgroup.com

 

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