Insurer Reaches Settlement with Texas Over Racial Bias in Rates

A life insurance company has reached a settlement with state regulators over discrimination in rates charged to black policyholders.

A statement issued by the Texas Department of Insurance said Austin-based Citizens National Life Insurance Co. settled the complaints against two companies Citizens subsequently acquired. The statement stressed that Citizens, itself, was not accused of discriminating against black policyholders.

The statement says the predecessor companies historically sold various types of insurance policies to black consumers at rates higher than those charged white policyholders.

Under the settlement, the company will add 23 percent to the face values of eligible policies.

There was no comment from the company.