Approximately 14,000 servicemembers who purchased certain life insurance products have yet to claim more than $2.3 million from a 2006 multistate settlement agreement with American-Amicable Life Insurance Company and its two Texas affiliates. The National Association of Insurance Commissioners (NAIC) released a website on April 23, 2009, to help servicemembers recover their money. Military Servicemember Policyholder Search
For answers to general insurance questions or for information on filing an insurance-related complaint, visit our website or call the Consumer Help Line between 8 a.m. and 5 p.m., Central time, Monday-Friday
1-800-252-3439 463-6515 in Austin www.tdi.state.tx.us
Shopping for Coverage
Get quotes from several companies. Each insurance company uses its own underwriting guidelines. One company may sell you a policy at a substantially lower premium than another. Life insurance agents are “captive,” meaning they can only issue policies for the insurance company they work for. Brokers, on the other hand, are “noncaptive” independent contractors who can sell policies for multiple insurers. A broker may therefore be able to provide you with price quotes from several companies during a single visit.
Compare “apples to apples.” Be sure the policies you compare offer similar levels of coverage. The more features, options, and added benefits a policy includes, the more it will typically cost. A policy that’s substantially cheaper than another may have fewer features or provide a substantially lower death benefit. A more expensive policy might actually prove to be a better value when you calculate the amount of the death benefit per premium dollar charged. However, don’t just decide on price; decide if the features are worth it.
Buy the policy that’s right for you. The more a policy costs, the more an agent or broker typically earns as a commission. When shopping for life insurance, keep in mind that the policy that’s best for your agent or broker might not be the best for your insurance needs.
Make sure your company and agent are licensed. It is illegal for an agent or company to sell insurance in Texas without a state license. The Life, Accident, Health, and Hospital Insurance Service Guaranty Association pays some or all of most claims for Texas-licensed companies that go bankrupt or become insolvent. If your company is unlicensed and goes bankrupt, your death benefit could go unpaid.
Research your company. An insurance company’s financial strength and customer service record can be good indicators of the level of service you can expect. You can learn a company’s financial rating by calling TDI’s Consumer Help Line. You can learn information about the frequency of a company’s customer complaints against a company by calling the Consumer Help Line or by using the Company Lookup feature on our website.
Shop for a low-load policy. You may save money, particularly on cash value life insurance, if you buy a policy with low commissions and administrative fees, collectively known as “the load.” Financial planners who are licensed insurance counselors often sell these policies. Generally, financial planners charge clients a flat service fee as opposed to earning commissions, meaning they receive no benefit from a high load. Since low load policies have fewer initial fees, your risk of losing money is also reduced if you cash out early from a cash value policy.
Use your “free-look” period. Most Texas policies will provide you with a “free look” or “right to examine” period of at least 10 days, during which you may cancel the policy for a full refund for any reason. Use this time to read your policy carefully to be sure the coverage is right for you.
Read about TDI's consumer complaints process in the Helping You With Your Insurance Complaint publication. You may also e-mail, mail, or fax your complaint along with copies of your supporting documents to
Texas Department of Insurance Consumer Protection Program (MC 111-1A) P.O. Box 149091 Austin, TX 78714-9091 Fax: 512-475-1771 E-mail: ConsumerProtection@tdi.state.tx.us
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