DOT Workers Still Paying Into Insurance Cancelled In 2001

It turns out dozens of state highway workers have been paying for a life insurance policy that was cancelled more than eight years ago. Now the state is refunding thousands of dollars in payroll deductions.

The DOT told 93 employees the deductions would immediately stop and refund money for the policies to CIGNA. The Employee Insurance Committee cancelled the policy in 2001 but never notified employees. Only after a review by the new Transportation Secretary did they discover the mistake.

"We regret that this lapse in coverage occurred, and we'll do all that we can to help the affected employees," said Secretary of Transportation Gene Conti, who learned of the problem after he came into office last year and directed an investigation. "We are taking steps to ensure that it does not happen again."

The DOT says another 641 employees had their policies cancelled at the same time, but they have not been paying premiums. They too will get some cash back because of the cancelled policies.

They're also is notifying another 390 employees who participated in the program that their policies also were cancelled, but their policies were fully paid up before the cancellation, and their coverage is in force.


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