Unitrin agrees to pay $33 million to settle class-action bias suit. (Companies).Unitrin said it will pay $33 million in a nationwide settlement to resolve all race-based underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. class-action lawsuits. The settlement, which is pending court approval in Alabama, covers subsidiaries United Insurance Company of America, the Reliable Life Insurance Go. and Union National Life Insurance Co. Unitrin Inc. said the settlement and fines would be covered with a $48.8 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge it recorded in second quarter 2000. Also, Unitrin has agreed to pay $1 million in additional cash relief to policyholders, plus a $1.25 million fine to Illinois to resolve race-based underwriting issues. Illinois was the lead regulator Lead regulator A leading self-regulatory organization that over sees compliance with a particular section of the law, such as the NYSE, ASE, or NASDAQ. investigating the issue, but the fine will be split among participating states, including Missouri, Louisiana, Texas and Florida. The long-abandoned industry practice of using race as an underwriting factor means that blacks and other minorities paid higher premiums than whites. This practice was based on actuarial tables Noun 1. actuarial table - a table of statistical data statistical table table, tabular array - a set of data arranged in rows and columns; "see table 1" that indicated a shorter life expectancy Life Expectancy 1. The age until which a person is expected to live. 2. The remaining number of years an individual is expected to live, based on IRS issued life expectancy tables. for black Americans as a group, Unitrin said. The companies stopped using race-based underwriting 30 years ago, a spokesman said. About 300,000 policies--less than 3% of the company's life insurance business--will receive automatic relief, either by Unitrin increasing the death benefit of the policies still in force or a cash refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies . Also, future premiums, if any are due, would be reduced. Beneficiaries of heirs of such a policy would receive a supplemental cash payment. |
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