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Augusta, Maine -

Superintendent of Insurance Mila Kofman joined the National Association of Insurance Commissioners (NAIC) on Thursday to announce the posting of a new tool at www.naic.org that helps military service members research and recover compensation they are entitled to receive, according to a 2006 multistate regulatory settlement agreement over life insurance sales practices to the military.

More than 14,000 service members who purchased life insurance products from American-Amicable Life Insurance Company of Texas or its two affiliates — Pioneer American Insurance Company and Pioneer Security Life Insurance Company — are owed more than $2.3 million from the multistate settlement. The online tool makes it easier for military members to determine if they are eligible for compensation by simply entering an individual’s first and last name in the search engine.

“Members of the military are encouraged to make use of the research tool to determine if they’re entitled to compensation,” Superintendent Kofman stated. “State insurance regulators work each day to protect consumers from inappropriate sales practices and seek to return money to consumers whenever possible and appropriate. I’m pleased that many men and women who serve and defend our nation will receive compensation.”

The multistate agreement was signed by Maine and 45 other states, as well as the District of Columbia and Guam. Service member policyholders (or a named beneficiary) of a “Horizon Life” policy issued between Jan. 1, 2000, and July 28, 2006, might be entitled to compensation and/or increased policy benefits. Policyholders who have been paid a death benefit or who have received a full refund are not eligible to receive compensation.

The settlement agreement was the culmination of a 20-month investigation involving the U.S. Department of Justice and the U.S. Securities and Exchange Commission. The investigation followed allegations by state insurance regulators and federal agencies that the American-Amicable companies violated insurance and consumer protection statutes in the sale and marketing of certain life insurance products to U.S. military service members.

The NAIC Military Sales Working Group continues to monitor the marketplace for inappropriate sales activities to the military. For more information, visit www.naic.org/committeesexmilitary.htm.

The Bureau of Insurance is part of the Department of Professional and Financial Regulation which encourages sound ethical business practices through high quality, impartial and efficient regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine. Consumers can reach the Bureau through its web site at www.maine.gov/insurance; by calling 800-300-5000 in state; or by writing to Bureau of Insurance, 34 State House Station, Augusta ME 04333.

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Last Updated: October 28, 2009 1:27 PM