Dover – Insurance Commissioner Matt Denn said that some military personnel in Delaware are eligible for refunds or increases in the cash surrender value of policies they bought from American-Amicable Life Insurance Co. of Waco, Texas. Nationally, a multi-state settlement with the company over improper sales to military personnel totals $70 million.

The settlement includes life insurance policies – often represented to military personnel as investment products – by American-Amicable, Pioneer American Insurance Co. and Pioneer Security Life Insurance Co.  The settlement requires the companies to:

• Make cash payments to former and current service members who were issued a “Horizon Life” policy between January 1, 2000 and July 28, 2006; and
• Increase the cash surrender value for all in-force “Horizon Life” and “Wealth Builder” policies regardless of when the policy was issued or military status.

In addition, the multi-state settlement requires the companies to stop selling any insurance product on military bases for five years; to stop selling “Horizon Life” after Dec. 1, 2006; to not accept any insurance application for lower ranking enlisted Army personnel without proof the applicant has been counseled on the purchase by a superior officer; and other stipulations.

The investigation of American-Amicable was led by the insurance commissioners of Texas and Georgia, and 41 states, including Delaware, have signed on to the settlement. The settlement affects 77 policies issued in Delaware.

“Members of the military in Delaware who believe they are affected by this settlement should call our office at 1-800-282-8611 or American-Amicable Life Insurance at 1-800-736-7311,” Commissioner Denn said. “This settlement – as well as a recent law passed in Congress to clarify that state insurance departments have jurisdiction over insurance companies doing business on military bases – illustrates the commitment of insurance commissioners to looking out for military personnel in our states every bit as much as other residents.”

Commissioner Denn is currently developing a guide to insurance issues for military personnel, with advice on special issues service members may face in life, auto, homeowners and health insurance.