American General Corp. expects to make a $175-million second-quarter aftertax charge to settle a lawsuit claiming one of its subsidiaries charged customers racially-based insurance premiums. The proposed resolution will settle class-action claims and regulatory issues relating to the pricing and sale of industrial life insurance policies. An inquiry by the Florida Department of Insurance led to American General’s discovery that certain policies written in the mid-1900s were priced in part on the policyholder’s race. American General said it stopped collecting differential premiums immediately upon the discovery.
Topics Lawsuits
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