Class-action Lawsuit
Unitrin agreed to settle a class-action lawsuit and repay $27 million to clients overcharged for life insurance because they were African-American. The settlement came after two years of investigation and negotiations among the companies, insurance regulators and attorneys representing policyholders. The money went to about 467,000 people who held policies sold from the Depression era through 1970. Insurance companies during that time often charged African-American customers more than Caucasian customers on the grounds that they were perceived to have a shorter life span and were a higher insurance risk.
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