American General Corp. expects to make a $175-million second-quarter aftertax charge to settle a lawsuit claiming one of its subsidiaries charged customers racially-based insurance premiums. The proposed resolution will settle class-action claims and regulatory issues relating to the pricing and sale of industrial life insurance policies. An inquiry by the Florida Department of Insurance led to American General’s discovery that certain policies written in the mid-1900s were priced in part on the policyholder’s race. American General said it stopped collecting differential premiums immediately upon the discovery.
Topics Lawsuits
Was this article valuable?
Here are more articles you may enjoy.
NAIC Victim of Cyber Incident Via PeopleSoft System 
US P/C Rebounds to Post Q1 Underwriting Gain; Net Income Doubles 
Need Wind Mitigation? New Florida Insurer Wants to Help With That 
‘Ghost Broker’ Who Procured 1,120 Policies Through Fraud Arrested From This Issue
