CAS3
01-28-03, 08:21 AM
Academy Life Insurance Refunds: As part of a $160 million settlement to
avoid federal prosecution for defrauding service members, Academy Life
Insurance Co. has agreed to no longer sell policies on U.S. military
installations. It also has agreed to add 6.5 percent to the face value of
any policies still in force, and to provide refunds to those who canceled
policies between 1991 and 1998. Furthermore, the company promised to trace
down service members who bought and later canceled policies. The company,
formerly affiliated with the Non Commissioned Officers Association,
admitted no wrongdoing in settling charges that had included fraud, false
statements and misrepresentation. As a result of the situation, Defense
officials have stated that they will tighten up on-base solicitations early
this year. In addition, a joint-service coordinating council will be
established as a clearing house for information about individuals and
companies that violate base access rules. [Source: Armed Forces News 3 JAN 03]
avoid federal prosecution for defrauding service members, Academy Life
Insurance Co. has agreed to no longer sell policies on U.S. military
installations. It also has agreed to add 6.5 percent to the face value of
any policies still in force, and to provide refunds to those who canceled
policies between 1991 and 1998. Furthermore, the company promised to trace
down service members who bought and later canceled policies. The company,
formerly affiliated with the Non Commissioned Officers Association,
admitted no wrongdoing in settling charges that had included fraud, false
statements and misrepresentation. As a result of the situation, Defense
officials have stated that they will tighten up on-base solicitations early
this year. In addition, a joint-service coordinating council will be
established as a clearing house for information about individuals and
companies that violate base access rules. [Source: Armed Forces News 3 JAN 03]