Davis Law Group, P.S.

Racial Discrimination - Torchmark - 9th Worst Insurance Company

Torchmark and its affiliates such as United American Insurance and Liberty National, take the ninth spot in Top 10 Worst Insurance Companies in America (provided by the American Association for Justice) for their abhorrent treatment of policyholders, including charging minorities more than whites.

Headquarters: McKinney, TX

Profits: $527.5 million

Assets: $15.2 billion

• The holding company for a variety of subsidiaries like low cost burial insurance has admitted that they were founded as little more than a scam that has exploited low-income Southerners for over 100 years.
• Charges minority policyholders more than whites and was sued for several million dollars for changing policies without telling their customers.
• Has been involved in various schemes like race-based underwriting, refusing insurance to non-English speakers and deliberate overcharging of premiums.
• Sold replacement policies that did not fully replace all of a person’s coverage, and would convince policyholders that their current coverage would be end when they turn 65, when it was actually good for life to be able to sell new policies that were not worth as much.
• Use “teaser rates” that promise a low rate, only to double the cost in less than two years without informing the policyholder.
• Torchmark’s subsidiary Liberty National Life paid $6 million to resolve a 2,000 member class lawsuit because they marketed $1 premiums to attract low-income policyholders, but blacks ended up paying 36 percent more than white policyholders.
• United American, a Torchmark affiliate, violated Minnesota state law by aggressively pressuring hundreds of seniors into buying more expensive and less comprehensive insurance than they already had. Agents were encouraged to act like they were from a senior service center or represented a federal agency.
• Have broken insurance laws in Minnesota at least three times, and ten other states have issued at least 26 enforcement actions against Torchmark.