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NY Life to refund race-based payments.(Companies)(New York Life)(The New York Insurance Department )(Brief Article)
- Article from:
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National Underwriter Life & Health-Financial ServicesEdition
- Article date:
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July 5, 2004
- Author:
- Thomas, Trevor
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Copyright informationCOPYRIGHT 2004 The National Underwriter Company. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NEW YORK LIFE INSURANCE Company has agreed to refund as much as $10 million to African-American policyholders who it acknowledges were charged higher premiums in the past because of their race.
Under an agreement with New York state regulators, New York Life will pay the refunds to African American owners of endowment policies sold during a period stretching from 1920 to 1948, or to surviving members of their families.
Endowment policies were term life contracts that paid back the premium, plus interest, to policyholders at the end of their terms, ranging from 10 to 20 years. New York Life no longer sells this type of policy.
The New York Insurance Department ...