October 15, 2019

October 15, 2019

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October 14, 2019

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South Carolina’s Insurance Breach Notice Requirements Now In Effect

South Carolina now has specific breach and security requirements for insurance companies. The law applies to those licensed under the state’s insurance laws and went into effect January 1. Under the law, companies must tell the insurance regulator within 72 hours of determining that a breach occurred. Other breach requirements include conducting investigations and keeping records of incidents for at least five years. This new notice requirement does not exempt companies from South Carolina’s general breach notice law, which requires notice to impacted individuals.

The law also includes several security requirements, which will become effective July 1. Among those are having a written information security program, understanding potential risks, and taking steps to manage the risks. The law also requires entities to take care when choosing vendors or other third parties. Companies must certify compliance with the law annually, beginning in February 2020.

Putting it Into Practice: Insurance companies with general breach notice plans should keep in mind the need to notify the insurance regulator in South Carolina, as well as the upcoming security requirements. Among these is not only a written information security program, but also taking care when working with third parties.

Copyright © 2019, Sheppard Mullin Richter & Hampton LLP.

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About this Author

Liisa Thomas, Sheppard Mullin Law Firm, Chicago, Cybersecurity Law Attorney
Partner

Liisa Thomas, a partner based in the firm’s Chicago and London offices, is Co-Chair of the Privacy and Cybersecurity Practice. Her clients rely on her ability to create clarity in a sea of confusing legal requirements and describe her as “extremely responsive, while providing thoughtful legal analysis combined with real world practical advice.” Liisa is the author of the definitive treatise on data breach, Thomas on Data Breach: A Practical Guide to Handling Worldwide Data Breach Notification, which has been described as “a no-nonsense roadmap for in-house and...

312-499-6335
Shanna Pearce, Sheppard Mullin, San Diego, litigation, class action, intellectual property, IP, copyrights, false advertising, commercial litigation, lanham act, unfair competition
Associate

Ms. Pearce represents businesses in the areas of intellectual property and commercial litigation, from trademark and copyright matters to consumer class actions. She has represented Fortune 500 companies in complex actions involving allegations of copyright violation, breach of contract, fraud, and unfair business practices. She has also defended retailers and financial institutions in class actions alleging violations of statute and federal laws relating to false advertising, unfair competition, pricing practices, and lending disclosures. Ms. Pearce’s litigation experience ranges from pre-suit strategy and advice to post-trial proceedings, with a special focus on appellate issues. She also has significant experience in private domestic and international arbitrations.

Ms. Pearce co-chairs the Bench-Bar Committee of Lawyers Club of San Diego, and is an active member of both the San Diego County Bar Association Appellate Section and the San Diego Appellate Inn of Court. She is a member of Sheppard Mullin’s own Pro Bono Committee and coordinates pro bono training and case placement in the Del Mar office. Ms. Pearce’s pro bono practice focuses on asylum and other immigration matters for victims of persecution, torture, and domestic violence.

858-720-7475