State Farm Faces Class-Action Lawsuit Over Alleged Privacy Violations

State Farm, the insurance giant, is facing legal trouble from a proposed class-action lawsuit that alleges a violation of privacy laws. The lawsuit, filed in Cook County on July 19, names State Farm and Insurance Services Office Inc. (ISO) as defendants.

According to WGLT, the suit alleges State Farm and ISO with five counts, which include violations of privacy, negligence, and unjust enrichment. A hearing for this case is scheduled for November 16.

The five plaintiffs behind the legal action claim that their personal health information was improperly shared with ISO, a database company known for conducting risk-management analyses using a vast database with billions of records.

Federal law, specifically the Health Insurance Portability and Accountability Act (HIPAA), and the Illinois state constitution, establish strict guidelines concerning the privacy and disclosure of health information. According to these regulations, sharing health information without an individual’s explicit consent is prohibited.

The plaintiffs argue that ISO profited from the collection of personal data, which is utilized to serve customers in the insurance industry, including State Farm.