More Refunds For Auto Credit Insurance Buyers
Settlement with American National Insurance Co. to benefit 17,000 Texas consumers
AUSTIN - Attorney General Greg Abbott today reached the
second settlement this month that protects auto credit insurance
purchasers. The $6.5 million settlement with American National
Insurance Co. of Galveston provides an average of $313 in premium
refunds to more than 17,000 Texas vehicle owners.
“Vendors who benefit from doing business in Texas must comply with Texas law,” Attorney General Abbott said. “Today’s settlement ensures that affected credit insurance purchasers receive the refunds they deserve. The Office of Attorney General will continue aggressively working to protect auto credit insurance purchasers in Texas.”
|Assurance of Voluntary Compliance with American National Life Insurance|
|Agreed Order Approving the AVC|
Under the Texas Insurance Code, the company was obligated to refund the unearned portion of the insurance premiums to those customers who paid off their loans ahead of schedule. American National, however, retained the unearned premiums from customers who paid off their loans early between 2002 and 2006.
The Attorney General has taken legal action against several credit insurance companies. Earlier this month, Enterprise Life Insurance Co. of Irving was the first company to settle with the Attorney General and offer refunds to eligible customers.
American National Life Insurance Co., the largest life insurance company domiciled in Texas, will make settlement information available within 30 days on its Web site at www.anico.com. Consumers may also speak to American National about the settlement at (800) 899-6502, or call the Office of Attorney General toll-free at (800) 252-8011.