LAWSUITS NEWS & LEGAL INFORMATION
American National Insurance Co.
Houston, TX: (May-24-07) The state of Texas filed a lawsuit against American National Insurance Co. (ANICO) over vehicle related insurance policies. The suit discussed the policies sold through auto dealerships for new vehicles by Galveston-based American National. The policies cover payments owed to financing institutions in the event the borrower dies or becomes disabled. The cost of the credit insurance policy was bundled into the buyer's vehicle loan for a period of as much as six years.
Under the Texas Insurance Code, ANICO was obligated to refund the unearned portion of the premiums to customers who paid off their loans early. Instead, the company retained the unearned premiums from customers who paid off their loans between 2002 and 2006. In a settlement reached, American National agreed to pay $6.5 million to settle the federal claims. Attorney General Greg Abbott, who spearheaded the lawsuit, claimed that the settlement will provide an average of $313 to more than 17,000 Texas vehicle owners. [HOUSTON BUSINESS JOURNAL: CAR INSURANCE FRAUD]
Published on May-25-07
Under the Texas Insurance Code, ANICO was obligated to refund the unearned portion of the premiums to customers who paid off their loans early. Instead, the company retained the unearned premiums from customers who paid off their loans between 2002 and 2006. In a settlement reached, American National agreed to pay $6.5 million to settle the federal claims. Attorney General Greg Abbott, who spearheaded the lawsuit, claimed that the settlement will provide an average of $313 to more than 17,000 Texas vehicle owners. [HOUSTON BUSINESS JOURNAL: CAR INSURANCE FRAUD]
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