American-Amicable Life Insurance Co. has agreed to provide cash refunds and increased policy benefits totaling $70 million in a settlement with Florida, 41 other states, the District of Columbia and Guam.

The settlement followed an investigation involving the improper sales of insurance and investment products to U.S. military personnel, according to a release from the Florida Office of Insurance Regulation.

The settlement alleges that Waco, Texas-based American-Amicable and its affiliates violated insurance and consumer protection statutes in the sale and marketing of certain life insurance products to U.S. service members. The term life policies, marketed as "Wealth Builder" or "Horizon Life," were sold primarily to military personnel and were often represented as investment products, the release says.

Nearly all the soldiers already had $250,000 in low-cost life insurance provided and partially subsidized by the federal government, so it was doubtful whether they needed even more insurance, according to the release.

As a result of the settlement, about 57,000 current and former service members will receive refunds and modifications to their existing insurance policies, and an additional 13,000 services members and 22,000 civilians will receive increased cash surrender benefits, the release says. More than 5,000 consumers who purchased their policies in Florida will be covered under the agreement.

In addition to the penalties, the American-Amicable companies are banned from military bases for five years, and are prohibited from any military personnel membership listings for sales or solicitation purposes, as well as other restrictions on sales and contacts with military personnel.

Details of the settlement agreement can be found at www.floir.com.

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