{"id":88673,"date":"2018-02-16T15:33:19","date_gmt":"2018-02-16T20:33:19","guid":{"rendered":"http:\/\/madisoncountycourier.com\/?p=88673"},"modified":"2018-02-16T10:24:19","modified_gmt":"2018-02-16T15:24:19","slug":"schneiderman-announces-settlement-with-trustage-over-misleading-solicitations","status":"publish","type":"post","link":"https:\/\/madisoncountycourier.com\/?p=88673","title":{"rendered":"Schneiderman announces settlement with TruStage over misleading solicitations"},"content":{"rendered":"

\"Attorny_General_Eric_T_Schneiderman\"Schneiderman announces settlement with TruStage over misleading solicitations<\/strong><\/p>\n

Trustage Insurance Agency Mailed Solicitations for Insurance Policies that Appeared to Come from New Yorkers\u2019 Credit Unions — Prompting Many Consumers to Sign Up without Necessarily Understanding They Were Doing So and that Premiums Would be Automatically Deducted from their Credit Union Accounts<\/em><\/p>\n

Company Must Reform Its Business Practices, Pay $75,000 in Restitution, Penalties, Costs, and Fees<\/em><\/p>\n

ALBANY \u2014 Attorney General Eric T. Schneiderman today announced a settlement with Iowa-based Trustage Insurance Agency, which mailed solicitations for Accidental Death and Dismemberment policies that appeared to come from New Yorkers\u2019 credit unions. Trustage is a wholly owned subsidiary of CMFG Life Insurance Company, which markets a variety of insurance products to credit union members, including Accidental Death and Dismemberment policies. The settlement requires Trustage to make a number of changes to its solicitations based on concerns raised by the Attorney General\u2019s office, and pay $75,000 in restitution, penalties, costs, and fees.<\/p>\n

The Attorney General\u2019s investigation revealed that Trustage\u2019s Accidental Death and Dismemberment policy solicitations mailed to consumers prominently featured the logo of consumers\u2019 credit unions and did not make clear that the solicitations were from Trustage. The solicitations contained other features that, coupled with the credit union logos, may have caused consumers to sign, complete, and return the policy enrollment form without fully understanding that they were signing up for a policy and were agreeing to have premiums deducted automatically from their credit union savings or checking account. For example, the solicitations featured prominent language advising consumers that their signature was requested on the enclosed \u201cSTATEMENT OF BENEFITS\u201d and directed consumers to \u201cSIGN and RETURN\u201d in large red letters at the top of the page.<\/p>\n

\u201cNew Yorkers have a basic right not to be misled by those seeking their business,\u201d said\u00a0Attorney General Schneiderman<\/strong>. \u201cThis settlement ensures full restitution for impacted consumers, as well as key reforms to Trustage\u2019s business practices.\u201d<\/p>\n

The settlement requires Trustage to make a number of reforms to its solicitations for insurance products, including:<\/p>\n