Life Insurance Company To Pay $360,000 Settlement For Incorrect Interest on Death Benefits

The following is a press release from the Massachusetts Attorney General’s office to SOURCE media.

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BOSTON – American General Life Insurance Company (AGLI) will pay over $360,000 to resolve allegations that it failed to calculate correctly interest payments for death claims, Attorney General Maura Healey announced today.

Under an assurance of discontinuance filed in Suffolk Superior Court, American General Life Insurance Company will pay over $180,000 to consumers and an additional $183,000 to the state.

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The AG’s Office alleged that American General Life Insurance Company violated the state’s consumer protection law when it failed to calculate the payment of interest pursuant to Massachusetts law for policies on which it had paid a death benefit since January 1, 2015.

“Life insurance issues are incredibly personal and important to consumers who need financial stability after the death of a friend or family member,” said AG Healey. “Beneficiaries need to be treated fairly and receive all the amounts to which they are entitled under the law.”

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Consumers with questions about this settlement should contact Attorney General Healey’s Insurance & Financial Services Division at 1-888-830-6277. Individuals who are eligible for a restitution payment will be contacted by American General Life Insurance Company.

This matter was handled by Assistant Attorney General Jasmine Jean-Louis of the Attorney General’s Insurance and Financial Services Division.

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