For Immediate Release
December 17, 2004

Office of Financial and Insurance Services Commissioner Linda A. Watters today announced that Michigan consumers will benefit from the multi-state settlement with New York Life Insurance Company concerning past discriminatory underwriting practices against African-American policyholders from 1920 through 1948.

"Insurance should be based on risk factors, not race factors," said Watters. "Basing rates on race is just plain wrong. Michigan consumers discriminated against by New York Life deserve this refund with interest."

Under the settlement, which includes 166 Michigan policyholders (or their descendants), New York Life will pay refunds on endowment policies issued to African-American policyholders between 1920 and 1948 where the policyholder was charged higher premiums due to race. Refunds of the extra premiums will be made with interest.

In June of 2000, the New York State Insurance Department announced an investigation into allegations of race-based underwriting of life insurance by its licensees. Through the National Association of Insurance Commissioner, Michigan was included in the settlement negotiations with New York Life. The investigation focused on different premium rates, compensation rates, risk classifications and unequal treatment with regard to dividends, benefits of other policy terms or conditions that were based solely on race as evidence of race-based underwriting. The Department continues to pursue other investigations involving New York licensees

New York Life will be engaging in an outreach initiative including mail, print and Internet communication to notify affected parties. For more information on the settlement, please call 1-866-891-0614 or 1-800-420-8141 (TTY) or visit www.outreachprogram.info.