New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here


by: Reagan Schaden


Reagan Schaden
GPA 3.8


Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Class Notes
25 ?




Popular in Course

Popular in Risk Management And Insurance

This 4 page Class Notes was uploaded by Reagan Schaden on Monday September 21, 2015. The Class Notes belongs to RMI 3500 at Georgia State University taught by Staff in Fall. Since its upload, it has received 25 views. For similar materials see /class/209910/rmi-3500-georgia-state-university in Risk Management And Insurance at Georgia State University.

Similar to RMI 3500 at GSU

Popular in Risk Management And Insurance




Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/21/15
V InsZrerAgrees39 It Overcharged 3106 Restitution BiosCase Is Set at 206 Million By JOSEPH B TREASTER After decades of paying higher premiums for life insurance than white customers more than two mil lion black customers and their tam ilies nationwide are going to be com pensated in a settlement reached yesterday with one of the nation39s biggest insurers The insurance company Ameri can General said that it was making restitution of 206 million mainly to the black customers and their heirs who until as recently as April paid as much as 33 percent more than white customers for small policies intended to cover burial expenses American General also agreed to pay fines of 75 million to regulators in five Southern states where most of the insurance was sold and to contribute 2 million to the National Association for the Advancement of Colored Peoples One black policyholder Bessie Jones a 71yearold grandmother in Sarasota Fla told state insurance regulators who uncovered the ra cially biased practices that over 40 years she bought at least a dozen policies with face values of about 1060 from a company now owned by American General On one of saw eral policies she cited she said she i paid premiums of 90 cents a week and had paid in more than 1600 for 39 the 9000 death bene t Bill Nelson the insurance commis sioner in Florida who along with 4 private classaction lawyers negoti ated the settlement on behalf of all 50 states called the long history of dis crimination tragic And he added it s incomprehensible that this practice continued up until recent daysquot The company said it had begun to take steps to end the practice as soon as it became aware of it The settlement was the first step In setting things right with millions of poor blacks who paid more for their insurance because the compa nies calculated that they would have shorter life spans than white custom ers While regulators say millions of these policies remain in effect the twotiered policy was outlawed in the now acknowledges that poverty rath er than race led to shorter lives for manyoftboseagainstwhomthe companies discriminated Regulator Saar individual policy holders ma their heirs are liker In rocelve a law hundred dollars BIC h in cash and I111pmimioi39emge with 39 I39mfinnaAanLDnnn 9 1960 s And the insurance industry I up to 115 percent of the 206 million 1 a C22 YNE Insurer Agrees to Repay 206 Million in Bias Case Continued From Page A1 going to the lawyers led by the New York firm of Milberg Weiss Ber shad Hynes 8 Lerach which special izes in classaction suits About 50 million of the money has been designated for both black and white customers who regardless of the rates they were charged paid more over the years in premiums than the few hundred dollars that these policies would pay More than 30 companies have low oost burial policies on their books Florida isalready investigating four of these companies that it suspects charged higher rates to poor blacks and in some cases Hispanics Those four companies are all subsidiaries of bigger companies the United In surance Company of America a unit df Unitrin Inc the Monumental Life Insurance Company a unit of Ae gon the Liberty National Life lnsur39 ance Company a unit of the Torch mark Corporation and the Life In surance Company of Georgia a unit of NC Group Both Aegon and ING are Dutch companies with growing operations in the United States This is huge step in the right direction said the Rev Jesse J ack son whose Rainbow Coalition Wall Street project concentrates on equal ity in financial services He said he had no doubt that mil lions of other cases awaited resolu tion My grandmother had these kinds of policies when I was growing 7 up in Greenville SC he said They would pay 25 cents a week The insurance man and the rent man would come by every week and when you could only pay one you paid the insurance man because all the old folks wanted a dignified burial American General said that nearly 5 million discriminatory policies on the lives of more than 2 million peo ple plus 43 million other policies held by both black and white custom ers were sold by companies it had acquired over the last 20 years as it was becoming one of the nation s largest insurers On about 400000 of these other policies the company said customers have paid or would have paid premiums that exceeded the face value of the policy Even though the policyholders were making regular monthly pay ments to an American General sub sidiary American General Life and Accident in Nashville American General said it discovered the two tiered system only after Florida in surance regulators subpoenaed com pany records last October The Florida investigators had be gun looking into the sales of small burial policies sometimes referred to as industrial policies because they were originally designed for lowpaid industrial workers after receiving complaints from some customers that they had paid more in premiums than the policies were worth Florida officials said that Ameri can General executives began nego tiations on settling the state s con 80 rM J 1 1m I J 39l xenop s39n Jedl Aeuoo uenpeuei THE NEW YORK TIMES THURSDAY JUNE 22 2000 Rick Flagg Bessie Jones with Bill Nelson F lorida s insurance commissioner said she had paid 1600 for a policy with 1000 in death benefits cems earlier this year but that the insurer kept collecting higher premi ums from blacks than whites until April when Florida demanded that the practice stop Talks between the state and the insurance company had broken off but they resumed after the so called ceaseanddesist order was issued We do not condone this practice American General said in a state ment when it stopped collecting the premiums In a statement yesterday Robert M Devlin the chief executive of American General said it was im perative that we move swiftly and responsibly to correct an unfortu nate historical practice Larry Mayewski a senior vice president at A M Best the insur ance rating agency said the settle ment would not have a major finan cial effect on American General which has assets of about 110 bil lion making it the nation s fourth largest life insurer Referring to potential harm to sales Mr Mayewski said There s always some impact when you re in the news for something that is not overly favorable I think the organi zation has decided right or wrong that the best thing to do is settle this and put it behind them and move on Mr Jackson said he hoped that other companies that followed biased practices would settle rather than wage long court battles Mr Jackson said his Rainbow Co alition had been independently re viewing the records of insurance companies during the days of slav ery and segregation His group has reported that some companies sold life insurance policies on slaves with their masters as the beneficiaries The twotier pricing system he said quot is a concrete documented ex ploitation and violation and we now need a commitment to heal the breach Mr Jackson said he had a very good meetingquot With American Gen eral executives at their headquar ters in Houston after they announced the settlement It39s no secret we had a slavery systemquot he said It s Increase in fataLpileups de es safety trends M of3 main ategorles News hri Fa States World More News Hca I ih in ice 0 Luis Dl lheul newgg f39lilumnims Lotteries MGIIE httpwwwusatodaycomusatonlineZOO1032931865 l7shtm F M Newspaper stories Page 5A Increase in fatal pileups de es safety trends By Scott Bowles USA TODAY LOS ANGELES Deadly crashes involving 10 vehicles or more are increasing on the nation39s highways one of the few fatality statistics to rise in the past decade a new federal study of transportation data shows Fatal pileups happen most often in California and usually occur in bad weather according to a study for USA TODAY by the National Highway Traf c Safety Administration On average they claim two lives and involve 14 cars The pileups occurred 80 times in the 1990s compared with 74 in the 1980s That39s an 8 increase The government de nes a deadly pileup as a crash that involves at least 10 vehicles and at least one fatality There was a 16 drop in all fatal accidents in the 3990s quotWe39re not looking at an epidemic but it certainly bucks the trend and conventional wisdomquot Los Angeles traf csafety engineer William Leavy says quotWhen highways become congested traf c generally slows down That39s supposed to cut down on the number of major pileupsquot Last month in the Virginia suburbs Washington DC a weatherrelated crash tangled 119 vehicles one person died and two dozen were injured In Syracuse NY this week a snowstorm during rush hour caused a 23car pileup No one died ve people were hurt According to the study there were 173 fatal accidents involving at least 10 vehicles from 1975 to 1999 They claimed 365 lives The NHTSA study examined Where they occur California led the country with 40 more than three times as many as the No 2 state Texas which had 12 Pennsylvania had 11 New York nine Why they occur Bad weather played a role in 119 of the pileups Fog contributed to 36 snow was a factor in 25 Nearly a third however occurred under no adverse conditions Roads were dry and visibility 32901 612 PM Increase in fatal pileups de es safety trends 4 20f3 I was good How dangerous they are The average fatal pileup claimed two lives The worst killed 10 Although the study did not examine nonfatal pileups federal officials say that deadly wrecks account for about 05 of all crashes every year quotThat means you39re looking at between 200 to 400 pileups every year involving 3000 to 5000 carsquot Leavy says Officials say about 90 of multivehicle collisions occur on interstates Leavy says that helps explains California39s high number of accidents quotLos Angeles is a freeway city so it makes sense that the state would have the mostquot he says quotStill it doesn39t have four times the number of roads of say Texas You have to look at behaviorquot as a contributing factor Michael Manser a research scientist specializing in driving behavior at the Texas Transportation Institute says cellular phones the popularity of sportutility vehicles and aggressive driving contribute to the pileups that occur in good weather conditions quotThose are obviously due to human errorquot he says quotPileups usually occur because drivers aren39t watching far enough down the road or aren39t allowing enough space between vehiclesquot In addition Manser says cellphones take attention off the road And SUVs make it harder for motorists behind them to see conditions ahead quotA pileup can come up pretty quickly if you can39t see much road in front of youquot he says Marie Hidalgo knows the feeling She was involved in the 119vehicle crash on Interstate 95 south of Washington DC on Feb 22 By the time she saw the junkyard of cars and trucks in front of her it was too late to do anything but brace for the wreck A snowstorm limited visibility and coated the interstate in a thin invisible layer of quotblack icequot The pileup turned the highway into miles of twisted metal Motorists abandoned their vehicles in the road certain they would be smashed from behind quotThere was nothing you could doquot Hidalgo 38 says of the pileup which shut down the highway for more than eight hours quotYou could watch car after car slide into the pile It just kept getting biggerquot Hidalgo escaped with only 800 worth of body damage to her car but says she39s sworn off winter driving on interstates quotIt39s the scariest thing I39ve ever seenquot she says quotYou know you39re going to hit the car in front of you and you know the car in back is going to hit youquot


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Anthony Lee UC Santa Barbara

"I bought an awesome study guide, which helped me get an A in my Math 34B class this quarter!"

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.