§ 146c.10. Determined violation.
(a) Violations of § § 146c.3 and 146c.4 (relating to information security program; and objectives of information security program) are deemed and defined by the Commissioner to be an unfair method of competition and an unfair or deceptive act or practice and shall be subject to any applicable penalties or remedies contained in the Unfair Insurance Practices Act (40 P. S. § § 1171.1—1171.15).
(b) A licensee has violated this chapter when the licensee knew or reasonably should have known of a pattern of activity or a practice of a service provider that constitutes either a violation of Chapter 146a (relating to privacy of consumer financial information), Chapter 146b (relating to privacy of consumer health information) or this chapter or a material breach of the contract or other arrangement between the licensee and the service provider, unless the licensee took reasonable steps to cure the breach or end the violation, as applicable, and, if the steps were unsuccessful, did the following:
(1) Terminated the contract or arrangement with the service provider, if feasible.
(2) If termination is not feasible, reported the violation or breach to the Department.
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