NU Online News Service, May 31, 8:11 p.m. – The Minnesota Department of Commerce is accusing three credit life insurance companies of charging rates that are too high.
Minnesota regulators have ordered the three companies to appear at separate hearings to determine whether approval of the policies should be withdrawn.
The insurers are JMIC Life Insurance Company of Deerfield Beach, Fla.; Union Security Life Insurance Company, Atlanta; and Universal Underwriters Life Insurance Company, Overland Park, Kan.
The percentage of premiums the three companies pay out in benefits is significantly lower than the loss ratios for most other life and disability insurance products, officials say.
Minnesota department actuaries estimate agent compensation eats up about half of the premiums collected by JMIC and Universal Underwriters, officials say.