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Hamm penalizes American National Insurance Company $275,000
Hamm penalizes American National Insurance Company $275,000
BISMARCK, N.D. – North Dakota Insurance Commissioner Adam Hamm today announced a $275,000 penalty against American National Insurance Company, also known as ANICO.
The order and administrative penalty were issued after the completion of an investigation into the claims settlement practices of American National Insurance Company. The investigation revealed that American National Insurance Company failed to follow the law regarding guaranteed issue coverage.
Guaranteed issue in credit life insurance or credit disability insurance is the minimum benefit amount an insurer must issue regardless of the policyholder’s health status. Currently, the guaranteed issue amount required by North Dakota law is $5,000 for both credit life insurance and credit disability insurance.
“This investigation found American National Insurance Company systematically failed to follow the law over the course of many years” said Hamm. “This type of unacceptable behavior is rarely seen in our state and demanded a large penalty.” 
The Department required American National Insurance Company to reimburse all affected consumers and the consent order requires the company to pay an administrative penalty of $275,000 for its violations of the North Dakota Century Code and North Dakota Administrative Code. The violations are detailed in the consent order which can be found here.
Consumers with questions about any American National Insurance Company claims are encouraged to call the Department at 1-800-247-0560.

North Dakota Insurance Department
600 E. Boulevard Ave.
Bismarck, ND 58505-0320
Phone 701.328.2440
Toll free 800.247.0560
Fax 701.328.4880

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