Hamm announces new tool to help military members recover life insurance compensation
Posted on 4/23/2009
BISMARCK, N.D.-North Dakota Insurance Commissioner Adam Hamm announced today that the National Association of Insurance Commissioners (NAIC) released a new tool at www.naic.org to help military service members research and recover compensation they are entitled to receive. More than $2.3 million remains unclaimed under a 2006 settlement agreement over life insurance sales practices to the military.
More than 14,000 service members who purchased life insurance products from American-Amicable Life Insurance Company of Texas or its two affiliates-Pioneer American Insurance Company and Pioneer Security Life Insurance Company-are owed more than $2.3 million from the multistate settlement. By entering their name in the search field, military members can determine if they are eligible for compensation.
"This tool provides an important consumer service that helps identify and locate those who were targeted by inappropriate sales practices and are now owed compensation," Hamm said.
The multistate agreement was signed by 46 states, the District of Columbia and Guam. Service member policyholders (or a named beneficiary) of a "Horizon Life" policy issued between Jan. 1, 2000, and July 28, 2006, might be entitled to compensation and/or increased policy benefits. Policyholders who have been paid a death benefit or who have received a full refund are not eligible to receive compensation.
The settlement agreement was the culmination of a 20-month investigation led by the Texas and Georgia insurance departments, the U.S. Department of Justice and the U.S. Securities and Exchange Commission. The investigation followed allegations by state insurance regulators and federal agencies that the American-Amicable companies violated insurance and consumer protection statutes in the sale and marketing of certain life insurance products to U.S. military service members.
The NAIC Military Sales Working Group continues to monitor the marketplace for inappropriate sales activities to the military. For more information, visit www.naic.org/committees_ex_military.htm or call the North Dakota Insurance Department at 1-800-247-0560.