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Regulators take aim at American General

 by Tampa Bay Biz Journal
 Mar 19,2008

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The Florida Office of Insurance Regulation is seeking to suspend or revoke American General Life Insurance Co.'s authority to write insurance policies in Florida.

The office filed an administrative complaint that would require American General, which is based in Houston, to cease and desist from unfair trade practices, according to a release.

The complaint specifically cites multiple counts of American General refusing to provide policies or limiting the amount, extent or kind of life insurance based solely on the individual's future lawful travel plans, the release said.

The most high-profile incident, according to regulators, involved U.S. Rep. Debbie Wasserman Schultz, D-FL, who in 2005 submitted a life insurance application to American General seeking to increase her current life insurance policy. She had indicated on her application that she had future plans for international travel.

While Wasserman Schultz did not address specifics in the application, American General later called and spoke with her husband who indicated that there was a possibility that she may plan future travel to Israel.

American General later told Wasserman Schultz it would deny her application for an increase in coverage because of her potential travel to Israel, an action described as unfair discrimination in the complaint.

This is the first time state insurance regulators have sought to suspend or revoke a life insurance company's license for violating the Freedom to Travel Act, the release said.

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© American City Business Journals Inc. All rights reserved.



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