Insurance customers data compromised

By CLARE JELLICK

OF THE JOURNAL STAR

PEORIA - Employees of at least six local employers have received letters from an insurance company saying their names and Social Security numbers were on a server stolen from the company in March.
The cities of Peoria and East Peoria reported at least 1,500 employees, families and retirees have received letters from the company, Medical Excess, LLC. Some workers at District 150, the city of Pekin, Peoria County and Dental Arts Laboratory Inc. also have received letters, but it's unclear how many.

"We had people calling us saying, 'Is this legitimate?' People don't understand why some firm in California would suddenly be sending you a letter. It was very upsetting to some of our employees," said Pat Parsons, human resources director for the city of Peoria. He received a letter along with 1,350 other families and individuals who have city insurance.

Medical Excess sells excess insurance, which allows employers to protect themselves against employee medical costs above a certain amount.

Social Security numbers for about 970,000 people were lost when the server was stolen out of a Midwest office, but no one has reported misuse of data to date, said Chris Winans, a spokesman for parent company American International Group.

Employees' information had been submitted by 690 insurance brokers seeking excess insurance quotes for employers.