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Cyberattack Halts Life Insurance Payouts for Months
17 Oct
Summary
- Cyberattack disrupted insurance operations for months.
- Customer waited over 80 days for life insurance claim.
- Company continued premiums after policyholder's death.
A cyberattack on TruStage significantly disrupted its operations, leading to prolonged delays in processing life insurance claims. Stephanie McWoods experienced this firsthand when attempting to access her late father's policy, facing an over 80-day wait for a claim number. During this period, TruStage continued to withdraw insurance premiums from the deceased's account.
While insurance companies in Illinois typically acknowledge claims within 15 business days, the cyberattack presented extenuating circumstances. TruStage stated that McWoods' claim was being processed when external inquiries were made and has since been resolved. The company acknowledged the disruptions caused by the cyberattack and the resulting frustration for customers.
Illinois law mandates that insurance companies generally have two months to pay a life insurance claim after proof of death. Families may be entitled to interest for delayed payments. Those experiencing similar issues are advised to seek updates in writing, maintain communication records, and consider filing a complaint with their state's insurance department if necessary.
