American General To Pay $360K For Miscalculating Interest On Death Benefits

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, AGLI will pay over $180,000 to consumers and an additional $183,000 to the state. The AG’s Office alleged that AGLI 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.”

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 AGLI.

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