OIR Participates In Multi-State Settlement

 

The following information was just released by the Florida Office of Insurance Regulation (“OIR”) regarding discriminatory life insurance pricing:

-NEWS FROM THE FLORIDA OFFICE OF INSURANCE REGULATION-

For Immediate Release:                 

Contact:  Ed Domansky/Tom Zutell/Jonathon Kees  850/413-2515

               

FLORIDA OFFICE OF INSURANCE REGULATION PARTICIPATES IN MULTI-STATE SETTLEMENT OVER DISCRIMINATORY LIFE INSURANCE PRICING

TALLAHASSEE, Fla. (11/15/2007) – The Florida Office of Insurance Regulation (Office) announced today that it has joined the states of Texas, Georgia, California and Ohio in reaching a settlement <http://www.floir.com/pdf/americolifeagreement.pdf>  with Americo Life Inc. that will provide additional benefits to African-American consumers who were historically sold various types of insurance policies at higher rates than policies sold to whites.

The Texas Department of Insurance (TDI) served as the lead regulatory negotiator for the five-state group that acted on behalf of all members of the National Association of Insurance Commissioners (NAIC).

“Discriminatory pricing of insurance products in Florida will not be tolerated at any time,” said Insurance Commissioner Kevin McCarty. “I encourage all Floridians to ask family members if they know of anyone who might have been affected by this.

“The practices covered by this settlement date back many years, but I assure all Floridians that if I ever hear of such practices again, I will take the most severe action that my position allows to sanction all violators.”

The policies were not sold directly by Americo but by insurance companies that Americo subsequently acquired. A list of the companies and online claim forms are available on a special Race-Based Pricing Web site maintained by the TDI at: www.tdi.state.tx.us/consumer/rbsettlement.html <http://www.tdi.state.tx.us/consumer/rbsettlement.html> .

The settlement affects small face amount life insurance policies, commonly known as industrial life or burial policies, which were sold to African-Americans at a higher cost or with lesser benefits than policies sold to white persons. For each person who is identified as a holder of an eligible policy, the company will add 25 percent to the face amount of the policy. All valid claims under this settlement will be honored for a period of four years.

“Record keeping back then was not what it is today, so we don’t know how many Floridians are affected by the settlement,” added McCarty. “That is why I encourage everyone to talk to family members and to then visit the TDI’s special Web site.”

 

About the Florida Office of Insurance Regulation

The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. Business units within the Office are organized based on regulatory expertise and include the areas of life and health, property and casualty, specialty lines and other regulated insurance entities. It is within the Office that the mission of public protection is implemented through regulatory oversight of insurance company solvency, policy forms and rates, market conduct performance and new company entrants to the Florida market. 

For more information about the Office, please visit www.floir.com <http://www.floir.com/>. If you would like to review and compare homeowners insurance rates in Florida, go to www.shopandcomparerates.com <http://www.shopandcomparerates.com/>.

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Should you have any questions or comments regarding this information, please feel free to contact this office.