NU Online News Service, Feb. 20, 4:10 p.m. – Life Insurance Company of Georgia and Southland Life Insurance Company, both in Atlanta, have agreed to settle claims they once charged race-based premiums to millions of minority customers, according to Georgia Insurance Commissioner John Oxendine.
The settlement calls for Life Insurance Company of Georgia and Southland Life Insurance Company, both of which are now subsidiaries of the ING Groep N.V., Amsterdam, to provide $51 million in relief to minority policyholders around the country.
The settlement follows an examination ordered by the commissioner after allegations emerged that the company historically charged African-Americans higher premiums than whites for similar or identical life insurance coverage.
Some 2.5 million policyholders nationwide will be affected by the settlement, including some 677,000 in Georgia, Oxendine says.
The final value of the settlement may increase if additional policyholders are located after relief is actually granted to policyholders, Oxendine says.