Georgia Insurance Commissioner John Oxendine announced that Madison National Life Insurance Company has agreed to refund premiums to soldiers who were solicited and sold term life insurance policies while they were training at two Georgia military bases.
Soldiers who received initial and advanced training courses at Ft. Benning and Ft. Gordon, and who were solicited to purchase certain life products while at those bases, will be eligible for refunds, Oxendine said. Refunds could reach a total of $250,000 for approximately 300 policies sold to Ft. Benning soldiers; while Ft. Gordon refunds could total $875,000 for approximately 830 policies.
American Amicable Life Insurance Company of Texas has already refunded approximately $412,000 to soldiers at Ft. Benning as part of an agreement to refund $1.3 million which the company reached with Oxendine’s office earlier this year. Further refunds in that case are expected.
Financial examinations are still ongoing for other insurance groups, Oxendine said. Fourteen states are following Georgia’s lead and actively participating in the exams, including Arizona, California, Colorado, Florida, Georgia, Iowa, Illinois, Kentucky, Massachusetts, Montana, North Carolina, Tennessee, Texas, and Virginia. More states are expected to join in the exam process.
“Company examinations by my office and other state insurance departments are continuing,” Oxendine said. “There are a number of other companies on our watch list which have similar products.”
Oxendine said the investigation began when allegations surfaced that certain agents of American Amicable, and other affiliated companies, violated various Department of Defense and Georgia Insurance Department regulations by identifying themselves as disinterested financial advisors while selling policies to soldiers in training.
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