Race-Based Insurance Claims
The Insurance Commissioner has announced a settlement with a life insurance group that will offer additional benefits to African-American consumers who bought life insurance policies at higher rates than policies sold to whites.
The settlement applies to policies issued between 1938 and 1960 that were still in force after December 31, 1959. Though race-based pricing was discontinued in policies sold afer 1960, death and surrender benefits for many older policies were never adjusted.
The settlement is with Americo Life, Inc., which now owns the 55 insurance companies that originally sold the policies. For each person who is identified as a holder of an eligible policy, the company will add 25% to the face amount of the policy. All valid claims under this settlement will be honored for a period of four years.
If you have one of these policies or are the beneficiary of such a policy, you may be entitled to additional free insurance or a cash payment, even if the policy has already been terminated.
A web page has been established in order to assist individuals who believe that they may be eligible for additional benefits as part of the settlement. The settlement and a list of the companies are available HERE.