Minnesota Criticizes Three Credit Life Insurers

Minnesota regulators say they have also requested information from 24 other companies that sell credit insurance policies with very low loss ratios.

Representatives for JMIC, Universal and Union Security could not be reached for comment.

The Minnesota department has scheduled the credit life hearings because it wants to send a message to credit insurance companies “that the product that is being sold needs to be marketed fairly with full disclosure and priced appropriately,” department spokesman Bruce Gordon says. “As long as insurance companies comply with Minnesota insurance law, this won’t be a problem for them.”

The hearings also reflect the legislative interests of Minnesota Commerce Commissioner Jim Bernstein.

Bernstein brought a credit insurance reform bill to the Minnesota Legislature late last session and again this session, and he will continue to work on issue, Gordon says.