Enterprise Life Insurance

Enterprise Life Insurance

San Antonio, TX: (May-14-07) Texas Attorney General Greg Abbott brought charges against Irving-based Enterprise Life Insurance Co., accusing the company of not refunding unused insurance premiums to auto loan customers. Abbott sued Enterprise Life and eight other credit insurance companies whose investigations are ongoing. The suit alleged that Enterprise customers bought policies in a lump sum through dealerships when they purchased their vehicles. The coverage period lasted through the term of the vehicle loan. Under the Texas Insurance Code, if the customers paid off their loans ahead of schedule they were to receive a refund of the unearned portion of the insurance premium, but Enterprise did not issue the refunds. In a settlement reached, Enterprise Life agreed to refund $4.9 million in unearned credit insurance premiums to more than 21,000 Texas vehicle owners. The average payout is expected to be about $230 per customer. Though Enterprise did not admit any wrongdoing, it agreed to settle to avoid the costs of protracted litigation. [BIZJOURNAL: ENTERPRIZE LIFE INSURANCE]

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Published on May-15-07