The California Department of Insurance has announced an agreement with a firm that sells life insurance products to active-duty members of the U.S. armed forces.
Trans World Assurance Company, San Mateo, Calif., has agreed to a settlement that calls for it to sell only life insurance policies that comply with California’s new Military Insurance Sales Regulation, officials say.
Trans World also has agreed to recalculate and pay interest as required by law and to repay withdrawal charges, officials say.
Before the regulations were adopted, Trans World sold universal life policies designed so that insurance premiums were deducted automatically from a savings account. The new regulations no longer allow the use of the automatic payment mechanism.