Indiana Department of Insurance
National Association of Insurance Commisioner’s
Life Insurance Rates News Release: 1/17/2005
Category: Life Insurance Rate Enforcement
Washington, DC – A federal judge today ruled in favor of the
National Association of Insurance Commisioners and its efforts to recoup more than $100 million for life insurance consumers nation wide, an amount which the agency contends that a select few insurance companies may have overcharged life insurance consumers by inflating
Indiana life insurance prices and
Indiana life insurance
quotes.
The federal judicial panel and courts actions allows the NAIC to help reduce
Indiana life insurance
rates. The objective of NAIC staff throughout this action has been to provide life insurance rate relief for life insurance consumer policyholders who have been charged excessive life insurance rates.
NAIC staff, using authority granted by the federal judicial panel’s decision, ordered life insurance companies to reduce its life owners rates by 12 percent in September 2004.
Indiana life insurance companies appealed the reduction in district court, claiming that the they had been denied due process in ordering the rate reduction.
“NAIC staff’s latest action, based on a different law was designed to address the court’s concerns regarding due process,” said NAIC’s Deputy Commissioner for Policy. “Despite the insurance companies objections, the courts have allowed the debate based on the facts to move forward. In the end we believe the facts will show that their rates can be reduced.”
NAIC staff contends that life insurance companies have been overcharging its policyholders since June 11, 2003, the effective date of Senate Bill 14. NAIC is seeking a refund of the excessive premium plus 10 percent interest. The total amount will be calculated from June 11, 2003, to present.
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Indiana Facts: George Rogers Clark led American forces against the British in the area during the Revolutionary War and, prior to becoming a state; Indiana was the scene of frequent Indian uprisings until the victories of Gen. Anthony Wayne at Fallen Timbers in 1794 and Gen. William Henry Harrison at Tippecanoe in 1811. During the 19th century, Indiana was the site of several experimental communities, including those established by George Rapp and Robert Owen at New Harmony. Indiana's 41-mile Lake Michigan waterfront—one of the world's great industrial centers—turns out iron, steel, and oil products. Products include automobile parts and accessories, mobile homes and recreational vehicles, truck and bus bodies, aircraft engines, farm machinery, and fabricated structural steel. Wood office furniture and pharmaceuticals are also manufactured.
The state is a leader in agriculture with corn the principal crop. Hogs, soybeans, wheat, oats, rye, tomatoes, onions, and poultry also contribute heavily to Indiana's agricultural output. Much of the building limestone used in the U.S. is quarried in Indiana, which is also a large producer of coal. Other mineral commodities include crushed stone, cement, and sand and gravel. Wyandotte Cave, one of the largest in the U.S., is located in Crawford County in southern Indiana, and West Baden and French Lick are well known for their mineral springs. Other attractions include Indiana Dunes National Lakeshore, Indianapolis Motor Speedway, Lincoln Boyhood National Memorial, and the George Rogers Clark National Historical Park. Hoosier State Meaning “land of Indians”
The ten largest cities in Indiana are: Indianapolis, Fort Wayne, Evansville, South Bend, Gary, Hammond, Bloomington, Muncie, Anderson, and Terre Haute.
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