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States Still Looking At Race-Based Sales Issue

By Jim Connolly

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NU Online News Service, March 19, 5:36 p.m. — Atlanta

Examinations have found life policies sold using race-based underwriting or pricing practices on the books of at least 40 U.S. life insurers, according to Texas Insurance Commissioner Jose Montemayor.

Montemayor told regulators and others here for the spring meeting of the National Association of Insurance Commissioners, Kansas City, Mo., that regulators working on the race-based sales issue have completed examining 35 companies.

The completed exams have led to $11 million in fines, $418 million in restitution payments, and adjustments or refunds for holders or beneficiaries of 5.5 million policies, Montemayor said.

Montemayor noted that regulators were still examining 28 other life insurers, and he predicted that regulators would schedule more exams.