WASHINGTON, Aug. 14 (UPI) -- A Texas life insurance company that sold policies to military service members fraudulently has agreed to a $10 million settlement with the government.

American Amicable Life Insurance Company, of Waco, Texas, has also been banned from selling insurance policies on U.S. military bases for five years.

According to the Pentagon and to the U.S. Justice Department, the company's agents sold life insurance disguised as savings plans to new, young recruits at financial planning seminars on military bases while they were undergoing their initial training.

About 70,000 military personnel and 22,000 other people who purchased the expensive insurance policies between January 2000 and July 20006 will share in the $10 million settlement.

The company said it is offering full refunds to affected policyholders, conducting surprise inspections of field agents, and is conducting a company-wide investigation by outside counsel of agent compliance.

American Amicable has also agreed to a $1.4 million settlement specifically at Fort Benning, Ga.

"Service members who were approached by independent agents and sold a Horizon Life policy during 2002 while assigned to a training unit at Fort Benning are eligible to receive a full refund for those policies (subject to the terms and provisions of that offer). To date, the company has paid out more than $630,000 in this program. Service members who receive the Fort Benning refund are not eligible for additional refunds," the company said.

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