Fraudulent Insurance Sales Upended

Four companies have agreed to a multi-state settlement agreement after Texas Department of Insurance investigators uncovered a pattern of deception to young troops. Under the agreements, the companies will refund more than $70 million to more than 93,000 consumers, including about 71,000 service members, according to TDI. The first settlement, on Aug. 3, followed a 20-month investigation by Texas and Georgia, together with the U.S. Department of Justice and the U.S. Securities and Exchange Commission, into the sales practices of three Waco, Texas-based companies: American-Amicable Life Insurance Company of Texas, Pioneer American Insurance Company and Pioneer Security Life Insurance Company. The second settlement was reached Oct. 17 with the Boston Mutual Life Insurance Company whose agents were misrepresenting insurance policies as savings or investment plans. For further information, call the companies’ consumer service center at (800) 736-7311.