Florida Insurance Commissioner Kevin McCarty has given national life insurer Liberty National three weeks to prove it has not discriminated against the state’s Haitian population, or it will lose its license to operate in the state.
McCarty issued an order June 4 that the Birmingham, Ala.-based insurer respond to allegations of unlawful discrimination based on national origin or potential travel plans.
A five-month, on-site investigation by Florida’s Office of Insurance Regulation found 1,149 alleged violations, of which 1,053 were for discriminatory practices, including specific violations regarding individuals and improper company business practices, according to McCarty. More than 7,000 life insurance applications were reviewed, officials said.
The allegations are linked to the state’s unfair practices law, including refusal to issue life insurance policies based on national origin, potential lawful travel and based on citizenship. One aspect of the law, generally referred to as the Freedom to Travel Act of 2006, places strict limitations on the ability of an insurance company to deny life insurance based on past or future lawful foreign travel, according to the state’s insurance office.
A “significant number” of consumers affected by Liberty National’s allegedly illegal practices were of Haitian origin or descent, McCarty’s office said.
The life insurer did not respond to requests for comment from IFAwebnews.com.
Liberty National is a subsidiary of McKinney, Texas-based Torchmark Corp., “a holding company specializing in life and supplemental health insurance for ‘middle income’ Americans marketed through multiple distribution channels,” according to the company’s website.
“Discrimination of any kind by an insurance company will not be tolerated by this office,” said Mary Beth Senkewicz, deputy commissioner for the state’s insurance office, in a statement. “We will do everything within our power to ensure that Florida consumers are protected from such unconscionable practices.”
The Florida Office of Insurance Regulation’s investigation reviewed items including Liberty National’s underwriting practices, agent-training materials, forms and its new-business issue process, revealing instances of improper notice and failure to maintain adequate records.
Liberty National has 21 days to show why its license should not be suspended or revoked. The insurer has about 182,000 policies in Florida, according to McCarty’s office.
Correction: An earlier version of this article identified the company involved in the lead paragraph as Liberty Mutual and not Liberty National. IFAwebnews.com regrets the error.
Liberty National could lose Florida license over alleged discrimination via IFAwebnews.com .