A life insurance company has reached an agreement with state and federal regulators in connection with allegations of improper sales of life insurance products on military base grounds.
American Amicable Life Insurance Company, Waco, Texas, has agreed to pay about $10 million in cash to 57,000 members of the armed services who bought the company’s Horizon Life product between 2000 and July 15, 2006, when the product was discontinued.
The company also has agreed to provide other compensation with an estimated value of about $60 million, by improving contract terms for current holders of the Horizon Life policies.
Service members who bought a Horizon Life policy in 2002 while assigned to a training unit at Fort Benning, Ga., are eligible to split $800,000 in refund funds remaining in an existing $1.4 million refund fund.
Regulators will be banning American Amicable and its affiliates from military bases for 5 years and impose other marketing restrictions, officials say.
The settlement includes state regulators, the U.S. Department of Justice and the U.S. Securities and Exchange Commission.