Insurers to pay Fla. $250K, make refunds
Orlando Business Journal
American Fidelity Life Insurance Co. and Trans World Assurance Co. have agreed to pay $250,000 in penalties, costs and fees to the Florida Office of Insurance Regulation to make refunds to policyholders.
State regulators alleged the company violated Florida’s military sales practices rule in an order issued last January. According to the state, the fund connected to the companies sold polices to members of the armed forces, then failed to credit interest properly and to provide effective rates of return.
Under the agreement, American Fidelity will pay $75,000, and Trans World will pay $175,000. Regulators said the companies re-filed policies and are now in compliance with state law.