The Utah Department of Insurance announced a multistate and federal settlement agreement with American-Amicable Life Insurance Co. and its affiliates, resolving allegations of improper sales practices.
Under the terms of the agreement, about 92,000 customers, including 70,000 U.S. military service members, will receive cash or other benefits totaling $70 million.
About 377 insurance policies were sold to military personnel claiming Utah residency, according to the insurance department.
The allegations included claims that American-Amicable targeted young military recruits and misled them into believing they were buying an investment product, when they were really buying an expensive term life policy coupled with a side fund. The customers included in the settlement purchased a Horizon Life insurance policy between January 2000 and July 2006.
The settlement agreement can be found at www.gainsurance.org. For more information, call 800-736-7311.