The head of a California benefits firm has agreed to pay $2 million in restitution to resolve an investigation started by New York regulators.
Douglas Cox, president of Universal Life Resources, San Diego, has agreed that he and affiliated companies will pay the restitution to policyholders throughout the United States who allegedly were harmed by the companies’ actions, according to New York Attorney General Eliot Spitzer and New York Insurance Superintendent Howard Mills.
The companies also have agreed to adopt new business practices and fees to avoid conflicts of interest, New York officials say.
Brian Maddox, a spokesman for Cox, says his client has no immediate comment on the settlement agreement.
The terms of the settlement agreement appear to prohibit Cox from using proceeds from an insurance policy to make the restitution payments.