Phildelphia-United Life Insurance Co. of Bala Cynwyd has reached agreement with the Pennsylvania Insurance Dept. over claims of discrimination lodged by African-American policyholders and their families that the company charged black persons higher premiums on its life and burial policies than whites.
The existing holders of policies written between 1933 and 1948 alleged that they continued to pay higher rates following passage in 1974 of a law prohibiting setting premium rates by race. Some 23,000 people, policyholders and their survivors, sought compensation for the discrimination.
Philadelphia United has agreed, without admitting that there was any wrongdoing on its part, to reimburse the group an average of $50. It will also pay the PID $250,000 to compensate for its failure to increase benefits to blacks in Pennsylvania on the same policies.
Was this article valuable?
Here are more articles you may enjoy.
Zurich CEO Says Staff Let Go as Regulator Finma Imposes Partial Sales Ban 
Former Insurance Agent Sentenced to Jail for Fraud, Again 
Lemonade Posts $43M Loss for Q2 as it Continues to Grow Customer Base 
Mapfre to Acquire Safety Insurance for $1.54 Billion in Cash Deal 
