More than 37,500 Delaware agents, policyholders, beneficiaries impacted

Following the receipt of additional data breach reports from insurers, including those related to the breach of the MOVEit file transfer services system used by third-party vendors, the Delaware Department of Insurance is updating this consumer alert and will be updating the online posting as information is received.

Residents who may be agents, policyholders, or beneficiaries of the following insurers should be aware that their personal data may have been compromised, and should watch for contact:

As shared during a June 26 consumer alert, the MOVEit data breach and other data security events trigger Delaware’s Insurance Data Security Act, which in addition to proactive data security measures and other requirements, mandates the following occur:

• Investigation of a cybersecurity event and correction of compromised information systems
• Detailed reporting to the Insurance Commissioner
• Notification to consumers within 60 days, except in cases where federal law or law enforcement agencies require or request modified timelines
  Consumers must be provided credit monitoring services at no cost for a period of at least one year in addition to receiving information regarding freezing one’s credit

Insurance Commissioner Trinidad Navarro encouraged consumers to protect their identities and reassured residents that the breach will be investigated thoroughly. “I take any breach of personal information very seriously, and encourage consumers affected to utilize the identity and credit protection services offered. Our Market Conduct staff, likely alongside investigators across the country, will work to investigate the situation and assess if appropriate safeguards were in place for the handling of data.”

The department worked with the General Assembly in 2019 to pass the Insurance Data Security Act and was one of the first states to implement the National Association of Insurance Commissioner’s model law. The law is an effort to fortify security measures and protect consumer data. It requires insurance companies and their vendors to follow certain data protection and breach protocols, including notification. The department may investigate violations of the Act and levy penalties accordingly.

Consumers should consider freezing their credit report due to the incident.

[Last Update: August 16, 2023 – Insurer and Producer added; Impact counts amended]

Insureds, agents, and beneficiaries should watch for notification

On June 16, PBI Research Services, a third-party vendor for Genworth Financial, disclosed a data breach that impacted the personal information of an estimated 2.5-2.7 million individuals, including about 8,000 Delaware residents. At this time, the company has indicated that the potentially compromised information may include agents, policyholders, and beneficiaries’ data including names, contact information, dates of birth, social security numbers, and policy numbers. Consumers are urged to be vigilant in protecting their data, as beneficiaries may not be aware of policies that contain their information, particularly in regard to life insurance benefits.

This event triggers Delaware’s Insurance Data Security Act, which in addition to proactive data security measures and other requirements, mandates the following now occur:

• Investigation of a cybersecurity event and correction of compromised information systems
• Detailed reporting to the Insurance Commissioner
• Notification to consumers within 60 days, except in cases where federal law or law enforcement agencies require or request modified timelines
• Consumers must be provided credit monitoring services at no cost for a period of at least one year in addition to receiving information regarding freezing one’s credit

Insurance Commissioner Trinidad Navarro encouraged consumers to protect their identities and reassured residents that the breach will be investigated thoroughly.

“I take any breach of personal information very seriously, and encourage consumers affected to utilize the identity and credit protection services offered. Our Market Conduct staff, likely alongside investigators across the country, will work to investigate the situation and assess if appropriate safeguards were in place for the handling of data.”

The department has received a relevant policyholder list, including consumers of long-term care, life insurance, and annuities lines, which investigators may use to check company compliance with the Act. Consumer service representatives may also use this information to help concerned agents, policyholders, and beneficiaries who contact the office.

This incident was a part of a significant cybersecurity attack involving the MOVEit file transfer system, with the breach likely occurring May 29-30 before a corrective action was implemented on June 2. The department has not at this time been notified of additional insurer or insured information being accessed as part of this breach.

The department worked with the General Assembly in 2019 to pass the Insurance Data Security Act and was one of the first states to implement the National Association of Insurance Commissioner’s model law. The law is an effort to fortify security measures and protect consumer data. It requires insurance companies and their vendors to follow certain data protection and breach protocols, including notification. The department may investigate violations of the Act and levy penalties accordingly.

Consumers can visit Genworth.com/MOVEit for updates and should consider freezing their credit report due to the incident.

Over $1 million claimed by Delaware residents in 2019, More than $400,000 in early 2020

The Delaware Department of Insurance has released new data about local use of the Life Insurance Policy Locator, a free tool offered in conjunction with the National Association of Insurance Commissioners (NAIC). In total, 1,116 requests have been submitted, and 387 matches have been reported since the tool’s implementation – a match rate of nearly 35%. Throughout Delaware’s use of the tool, a total of $3,504,850 has been claimed by beneficiaries through located policies, and $1,071,516 during 2019 alone. In the first five months of 2020, residents were able to access $402,574 as a result of successful searches.

“The Life Insurance Policy Locator is a great tool for Delawareans to be aware of. When a loved one passes, there isn’t always a will or a detailed plan for the family’s future financially. Using the Policy Locator, it is easy to find out if a life insurance policy or annuity contract existed, and simple to claim the policy if there was one in place,” said Insurance Commissioner Trinidad Navarro. “This is just one of the many ways our department is offering a consumer-friendly insurance experience.”

Simplifying what can often be a long and frustrating process, only a nominal amount of information is needed to begin a search in the Life Insurance Policy Locator. After a request is submitted by a beneficiary, executor, or legal representative, dedicated NAIC liaisons take on the task of asking participating companies to search their records to identify any policies or annuity contracts in the name of the deceased. Then, if a participating company does have policy information on file, they will respond to the requester if they are authorized to receive information or are the designated beneficiary. Data is typically made available within 90 business days.

Delaware implemented the Life Insurance Policy Locator in November of 2016. Requestor preference and beneficiary specification may result in more matches than claimed policies.

Visit insurance.delaware.gov/services/missingpolicy to access the tool.

Commissioner Karen Weldin Stewart Announces New Search Service

Dover, DE – Do you believe your deceased loved one has a life insurance policy that you cannot find? The Delaware Department of Insurance can help you try to locate it.

Commissioner Karen Weldin Stewart today announced that the Department now provides Delaware residents and their families with a free search service that can help locate missing life insurance policies or annuity contracts left behind by loved ones who have passed away.

“I’m happy that the Department has set up this new service to help Delawareans locate lost insurance policies that were purchased in our state,’ said Commissioner Stewart. “Our search will enable eligible persons to contact every life and annuity insurer licensed in Delaware in order to look for a lost policy or contract. I’m always fighting for consumers and this new service should help many of them find the benefits to which they are entitled.”

The service works like this: An executor, beneficiary or legal representative of a deceased resident or former resident of Delaware may file a search request with the Department of Insurance. To submit a request, print out the Missing Life Insurance/Annuity Search Request Form on the DOI website at

http://www.delawareinsurance.gov/services/missingpolicy.shtml.

The form should be filled out, then signed before a Notary Public. Be sure to attach a copy of the decedent’s certified death certificate. Then place the documents in an envelope marked “Confidential” and mail it to the address printed on the form.

Please note that the Department of Insurance does not guarantee that every requested policy will be found. Upon receipt of the request form, the Department will send the search request and any attachments to all Delaware-licensed life insurance companies for review. An insurance company must process a policy and/or contract if they have information about a life insurance policy or annuity contract on the deceased person’s life. The insurance company will contact the requestor directly if money is to be paid to them.

Call the Consumers Division at 1-800-282-8611 if you need additional information.

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Dover, DE – National Retirement Planning Week runs from April 11 to 15, and Insurance Commissioner Karen Weldin Stewart joins with the National Retirement Planning Coalition to recommend that Delawareans of all ages take time to review their existing retirement strategy, or to formulate a plan if they don’t already have one. It’s important to have a plan for financial stability in retirement besides relying on Social Security alone. While there’s no right or wrong way to plan for retirement, taking no action could be a recipe for disaster.

The Government Accountability Office’s May 2015 report, Retirement Security: Most Households Approaching Retirement Have Low Savings, found that more than half of people age 55 and up don’t have any money saved for retirement. And about half of that group won’t be getting a pension, leaving them with little to no retirement income outside of Social Security benefits. The report states, “[C]ompared to current retirees, workers age 55 and older expect to retire later and a higher percentage plan to work during retirement. However, one survey found that about half of retirees said they retired earlier than planned due to health problems, changes at their workplace, or other factors, suggesting that many workers may be overestimating their future retirement income and savings.”

Commissioner Stewart says, “Planning for retirement can seem like a daunting task but the earlier you start saving, the easier it will be to actually reach your goals. National Retirement Planning Week serves as a great reminder for people to see if their retirement planning strategies are going to provide the best benefits for their future needs. After completing a self-analysis or working with a professional, consumers should redefine their goals and take action to make necessary changes. Consulting with your life insurance agent or broker should be part of this analysis.”

The National Retirement Planning Coalition is a group of prominent education, consumer advocacy and financial services organizations. The goal of the initiative is to demonstrate that it is possible to “Retire On Your Terms” if comprehensive retirement plans are properly developed and managed. To support these education efforts, the coalition has collected the latest resources to help consumers and financial professionals focus on long-term financial goals. These tools are available year-round at www.retireonyourterms.org, which features life-stage specific resources to help Americans focus on their long-term financial goals.

For more information on topics related to retirement planning, consumers are also encouraged to visit the Delaware Department of Insurance website, www.delawareinsurance.gov, and the National Association of Insurance Commissioners’ consumer website, www.InsureUonline.org.

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For more information:

Jerry Grant 302-674-7303