LAWSUITS NEWS & LEGAL INFORMATION
Universal Underwriters Life Insurance Co. agrees to pay over $2.4 million settlement in automobile credit insurance dispute.
Austin, TX: (May-28-08) Attorney General Greg Abbott brought charges against Universal Underwriters Life Insurance Co., an automobile credit insurance company, alleging that it unlawfully withheld insurance premiums from than 12,000 Texans who paid off their vehicle loans early. Federal sources stated that the Office of the Attorney General had brought similar claims against nine auto credit insurance companies, reaching settlements with most.
The suit stated that the Overland Park, KS, company sold policies that were intended to cover vehicle payments in the event the borrower died or became disabled. Abbott said that customers who bought single-premium policies paid for the insurance in a lump sum when they purchased their vehicles. The full cost of the credit insurance policy was bundled into the buyer's vehicle loan and the coverage period lasted through the term of the vehicle loan, in some cases as long as six years.
In a recent announcement, Abbott's office stated that it has reached a settlement with Universal Underwriters Life Insurance Co., in which the company has agreed to refund insurance premiums worth $2.4 million to TX policyholders whose loans terminated between 2002 and 2006. Additionally, the company also will pay $125,000 in attorneys' fees to the state. Records indicate that of the original nine companies against whom the OAG took legal action, only one case, against Resource Life Insurance Co., remains pending.
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Published on Jun-1-08
The suit stated that the Overland Park, KS, company sold policies that were intended to cover vehicle payments in the event the borrower died or became disabled. Abbott said that customers who bought single-premium policies paid for the insurance in a lump sum when they purchased their vehicles. The full cost of the credit insurance policy was bundled into the buyer's vehicle loan and the coverage period lasted through the term of the vehicle loan, in some cases as long as six years.
In a recent announcement, Abbott's office stated that it has reached a settlement with Universal Underwriters Life Insurance Co., in which the company has agreed to refund insurance premiums worth $2.4 million to TX policyholders whose loans terminated between 2002 and 2006. Additionally, the company also will pay $125,000 in attorneys' fees to the state. Records indicate that of the original nine companies against whom the OAG took legal action, only one case, against Resource Life Insurance Co., remains pending.
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[KLTV NEWS: Universal Underwriters]Search for: Texas AG Reaches Settlement With Auto Credit Insurance Company
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