Nov. 2, 2006
By Pfc. Ethan Hoaldridge, Marine Forces Pacific

U.S. MARINE CORPS FORCES, PACIFIC, CAMP H. M. SMITH, Hawaii (Nov. 2, 2006) -- Certain insurance agencies got caught with their hand in the cookie jar, now having to pay back more than $70 million to 70,000 service members after allegedly using misleading business practices.

According to the Marine Administration Message 514/06, American Amicable Life Insurance Company of Texas and its affiliates, Pioneer American Insurance Company and Pioneer Security Life Insurance Company, allegedly committed violations of insurance protection laws, while selling their Horizon Life and Wealth Builder insurance policies.

After legal claims were settled by federal and state agencies, approximately 70,000 service members who purchased these policies from Jan. 1, 2000 - July 28, 2006, are eligible for cash refunds totaling $70 million and increased policy benefits. This includes former and current customers.

Now, American Amicable companies are no longer allowed to solicit or sell any of their products on a military installation for five years.

Marines and dependents who purchased life insurance products from an American Amicable Company should call the companies’ customer service center at (800) 736 – 7311 and give their current mailing address.

The company will contact each policyholder by mail with information regarding their refund, and will send a check payable to current and former customers.

“This is why we offer legal assistance,” said retired Lt. Col. James O’Donnell, the MARFORPAC attorney advisor. “If in doubt, bring the life insurance policy in, or any contract for that matter, to the legal office, and we will interpret the document for you.”

There are many other forms of deceptive business practice out there as well.

“Out of my 24 years of service, I’ve seen almost every type of scam out there. It’s better to come to us for help, than ask the insurance agent that works off of commission,” said O’Donnell.

There are many government agencies that offer assistance as well.

“The State Department of Insurance is here to protect the consumers’ rights,” said J.P. Schmidt, the insurance commissioner of Hawaii. “Any time the consumer feels something improper is happening, dealing with a life insurance policy, it is very important to contact the insurance department in your state of residence or where the policy was sold immediately.

“Our main duty is taking policyholders’ calls and explaining the situation to them,” said Schmidt. “Then we will investigate whether or not there is a violation of insurance or consumer protection laws.”

The Hawaii State Department of Insurance and the National Association of Insurance and Financial Advisors are two good resources to contact with questions about insurance policies, according to Schimdt.

The Hawaii State Department of Insurance can be contacted by calling (808) 586 – 2790.

On the Net:
National Association of Insurance and Financial Advisors:
http://www.naifa.org

U.S. Department of Justice:
http://www.usdoj.gov/usao/pao/news/pr/2006/aug/americanamicablepress.p

Marine Administration Message 514/06:
http://www.usmc.mil/maradmins/maradmin2000.nsf