Texas Department of Insurance

TDI negotiating race-based pricing settlements

Since 2000, the Texas Department of Insurance and a number of other state insurance departments have been investigating a large number of life insurance companies to determine whether any of them historically have charged non-white individuals more in premium than similarly situated white individuals, a practice known as race-based pricing. While the TDI has determined that the race-based pricing ceased altogether regarding the sale of new policies in the early 1970s, premiums currently being collected or death benefits paid on old policies issued before the early 1970s may not have been adjusted to eliminate the effects of this practice.

As a result of these investigations, the TDI along with several other states are the lead negotiators in a multi-state effort to settle claims against insurers who they believe may have historically engaged in race-based pricing. The policies involved are commonly known as industrial premium policies, small-amount life policies, industrial life and burial policies, or penny policies. Typically, these policies provide life insurance coverage. However, they might also provide accident and health or disability coverage.

The TDI has established this website in order to assist individuals who believe that they may be eligible for additional benefits pursuant to one of the settlements negotiated by the TDI. If you have one of these policies or are the beneficiary of such a policy, you might be entitled to refunds, additional free insurance, or a cash payment, even if the policy has already been terminated. To determine whether your policy is covered under one of these settlements, please begin by searching through the drop-down menu below to determine if the company that issued your insurance policy is listed. If so, simply click on the company´s name, and click the go button next to the drop-down menu.

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