Sunshine State regulators say they want to revoke the authority of a life insurer to write new policies in Florida because the insurer has considered lawful travel plans when selling life insurance in the state.
The Florida Office of Insurance Regulation has filed an administrative complaint in connection with “travel underwriting” allegations against American General Life Insurance Company, a unit of American International Group Inc., New York.
Florida now has a law that prohibits insurers from using lawful travel plans as a reason to deny life insurance applications or limit coverage, unless the insurers can show that they have actuarial justification for their approach.
The Florida complaint seeks to require American General Life to “cease and desist from unfair trade practices as defined” by Florida’s Freedom to Travel Act, officials say.
Florida regulators have asked American General Life to change its approach to travel information, but the company has refused, officials say.
AIG has issued a statement noting that it has just received a copy of the Florida complaint.
“We take it seriously and are giving it immediate attention,” AIG spokesman Michael Arcaro says in the statement. “It is and has been the intent of AIG American General to comply fully with the Florida Freedom to Travel Act. We have put in place policies, procedures and controls to ensure compliance with this and other applicable regulations, and we are continually looking for ways to enhance those measures.”
AIG American General will cooperate with Florida insurance regulators, Arcaro says.