Florida has been authorized to negotiate a nationwide settlement with American General Corp., which has admitted to charging nearly 350,000 African-American policyholders higher premiums on industrial life insurance policies. The resolution was signed at the National Association of Insurance Commissioners’ summer convention in Orlando. The resolution also calls for individual investigations to be performed by each state on all life insurers. Several states, including Texas, have already begun the process.
It is yet to be seen how many additional companies may still be charging higher premiums to African-American customers. Florida has been negotiating with American General since April when the department of insurance ordered the company to stop its practice of charging race-based premiums. American General estimated that as many as 350,000 customers were still paying excess premiums totaling roughly $500,000 annually.
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