New search tool created for insurance refunds - Army News | News from Afghanistan & Iraq - Army Times

New search tool created for insurance refunds

A new search tool will help current and former service members determine if they are owed some of the $2.3 million that is still unclaimed as a result of a 2006 multi-state settlement agreement concerning life insurance sales practices to the military.

The tool, launched April 23 by the National Association of Insurance Commissioners, allows a simple search by first and last name.

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 still owed more than $2.3 million, according to the NAIC. Refund amounts vary according to type of policy and other factors.

There is no deadline for claiming the funds, said NAIC spokeswoman Vanessa Sink. Unclaimed money will stay in the state where the service member bought the policy, in whatever fund is required by the state’s laws.

The 2006 settlement agreement was signed by 46 states, Guam and the District of Columbia. Service member policyholders, or a named beneficiary of a “Horizon Life” policy issued from Jan. 1, 2000, to July 28, 2006, may be eligible to receive compensation and/or increased policy benefits. Those who have been paid a death benefit or who have received a full refund are not eligible.

At the time the agreement was announced, officials said more than 70,000 current and former service members were expected to get about $70 million in refunds or potential policy enhancements. Information was not immediately available on how many people have actually received refunds or policy enhancements from the settlement.

The settlement agreement was the result of a 20-month investigation led by the Texas and Georgia insurance departments, the Department of Justice and the Securities and Exchange Commission. State insurance regulators and federal agencies alleged that American Amicable often targeted its sales pitches at young trainees, and instructed its agents to market the “Horizon Life” policy as a savings plan rather than an insurance policy.

The settlement did not require American Amicable to admit to or deny the allegations.

Those who use the search tool must agree to “Terms of Use” stating that they have a legitimate reason for using the lookup system and understand that using the system for fraudulent activity is prohibited.