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July 07, 2008 at 01:11 PM
A California life insurer says it plans to fight an order revoking its right to sell life insurance in Georgia.
Georgia Insurance Commissioner John Oxendine says he has revoked the certificate that gives Trans World Assurance Company, San Mateo, Calif., the authority to sell life insurance in Georgia because of concerns about Trans World’s sales of life insurance products to active-duty U.S. military personnel in Georgia.
Oxendine also has imposed a $214,000 fine on the company and ordered Trans World to refund monies collected from active-duty members of the U.S. Armed Forces for products sold in Georgia since September 2007.
The order requires Trans World to continue to service existing contracts sold before September 2007 and to honor contracts made after Sept. 1, 2007, until refunds are made.
Trans World “was aware of the law in Georgia, and they violated the law by selling products that were prohibited by Georgia,” Oxendine says.
Trans World President Charles Royals is objecting to the disciplinary actions.
“We completely disagree with the ruling,” Royals says. “We are filing an appeal in Georgia Superior Court.”
The Oxendine decision contradicts findings by the Internal Revenue Service, the Securities and Exchange Commission, and federal and state courts, Royals says.
