SAN FRANCISCO, Calif. (KCBS)- A California-based health insurance company has agreed to pay the state of Connecticut $250 thousand for losing a disk drive containing private information of 446 thousand state residents.

Along with the settlement Health Net has agreed to provide services to customers including free credit monitoring.

The state sued Health Net in January after the company reported it lost a portable disk drive from its Shelton office last May, but didn’t tell customers until November.

A Health Net spokeswoman says the company has found no evidence the data has been misused and it is working to improve its security system.