Attorney General files suit against insurance companies
The four companies listed in the suit, American Heritage Life Insurance Company, Protective Life Insurance Company, Old United Life Insurance Company and Resource Life Insurance Company, have been accused of defrauding customers who purchased "credit insurance." The insurance was supposed to cover the purchaser for the duration of that person's auto loans. If the insured incurred disability or died during the loan period, the insurance would pay off the balance of the auto loan. The companies listed promised to return the unearned premiums if the consumer paid off their car loan early as required by the Texas Insurance Code.
The lawsuit seeks to refund money to approximately 27,000 Texas residents who purchased the insurance. If approved, the consumers affected would get back an average of $222 plus interest.
