California DMV Revokes Allstate Insurance Company's Electronic Access to Confidential Driver Records

    SACRAMENTO, Calif.--Jan. 16, 2003--The California Department of Motor Vehicles today revoked Allstate Insurance Company's electronic access to confidential driver license and vehicle registration information, because the company failed to adhere to state laws and regulations concerning access to those records.
    The DMV provides electronic access to confidential information for Allstate and other insurance companies to facilitate their investigation of automobile insurance claims and to set rates based upon a person's driving record. The Department stated the reason it revoked Allstate's requester code contract was because the company engaged in continuous and system-wide violations of the security provisions of that contract.
    A DMV audit at seven of the company's California claims offices uncovered that Allstate employees had engaged in numerous violations of the confidentiality requirement of the contract. This included using bogus or nonexistent investigative file numbers to request information from DMV files.
    The audits were triggered by a complaint that an Allstate customer's confidential address had been released, which resulted in a written threat to that person. These audits also uncovered numerous instances where Allstate employees improperly accessed records of friends, relatives, and others in addition to their own records.
    High on the list of violations was the company's refusal to allow DMV auditors access to Allstate premises as guaranteed by the company's contract with DMV, and numerous password and security lapses. There were many other types of contract violations, including failure to keep records of address inquiries, application changes, and disclosure violations. The audit also uncovered significant unauthorized use, disclosure, and distribution of the information obtained.
    DMV Director Steven Gourley said unauthorized viewing and disclosure of the department's confidential records is a very serious matter. He asserted he has "a duty and an obligation to assure that no one abuses the public's right to privacy of confidential record information."
    He added: "While I regret this may present an inconvenience to Allstate's customers, we must make a strong statement that abuse of the information held by the Department of Motor Vehicles on behalf of consumers will not be tolerated. Allstate can still obtain their customers' information, but not by electronic means."
    The revocation of Allstate's electronic access to DMV records will not have any effect on the department's highly popular system for Internet renewal of vehicle registrations. Allstate customers have not been eligible to use that service, because Allstate is the only major auto insurance company that has not signed up with the California DMV for electronic verification of insurance coverage.
    This is not the first time the California DMV has revoked a company's authorization for electronic access to DMV records because of violations.
    The California DMV licenses drivers; maintains driving records; registers and issues titles to vehicles and vessels; investigates auto and identity related fraud; licenses vehicle dealers, salespersons, vehicle dismantlers, driving schools, and traffic violator schools. The DMV is a department of the Business, Transportation and Housing Agency, Maria Contreras-Sweet, Secretary. Additional information about the DMV can be found on the department's Web site at: www.dmv.ca.gov.

    EDITORS NOTE: DMV Director Steven Gourley will be available today (Thursday) anytime after 2:00 p.m. California time in his office at DMV Headquarters, 2415 First Avenue, Sacramento, to answer any questions from the news media regarding this matter.