Date: July 21, 1999
For more information contact: Eileen Mallow (608) 266-7843 or eileen.mallow@wisconsin.gov

Madison, WI--Numerous Wisconsin consumers have been enrolled this year in credit insurance policies without their permission and complained to the state's Office of the Commissioner of Insurance (OCI), according to Insurance Commissioner Connie O'Connell.

In a rash of recent cases, the complainants said that they had not requested credit insurance, yet they received notification from Fleet Credit Card Services that a policy was in effect. An investigation by the OCI found the financial company had contacted 73,000 credit card holders who had not asked for insurance, using policy information from American Bankers Insurance Group of Miami, Florida.

In November, American Bankers Insurance Group was forced to pay a forfeiture, including $110,857 to the State of Wisconsin, after being accused of deceptive marketing practices involving credit insurance in at least 35 states.*

People should be careful about checking boxes or signing forms they find in their credit card statements, O'Connell warns. Monthly statements from the credit card companies often include advertisements for credit insurance that is intended to pay the minimum monthly payment in the event the cardholder is disabled or cannot work.

"People really have to pay attention when they make out their bills," O'Connell said. "Sometimes agreeing to credit insurance is as simple as writing one's initials on the payment stub that is returned with the check." She also suggested that Wisconsinites regularly check their monthly credit card statements for unauthorized deductions.

The OCI provides the following additional tips:

1. Be sure you give some thought about whether you need credit coverage. Find out the amount of insurance provided and the cost of the insurance. A number of different insurance companies sell such protection and the premium is usually added to your credit card balance each month.

2. Be sure you understand the limitations of the coverage and how it really applies to credit card balances. It pays only the minimum monthly payment that is due--the coverage does not pay off the individual's total monthly credit card balance.

3. When solicited over the phone, be sure you ask for the name of the caller, as well as the name of the company the caller represents. If you do not want the coverage, simply inform the solicitor of your wishes and hang-up.

4. If you have a problem regarding credit insurance or any other insurance, file a complaint with the OCI. Consumers can file complaints by calling 1-800-236-8517 or by printing a copy of the complaint form from OCI's Internet website at http://oci.wi.gov/com_form.htm

Other tips can be found in the "Consumers Guide to Insurance," published by the OCI. For a copy of this booklet and a list of other OCI publications, call the above phone number, search the Internet site, or write:

The Office of the Commissioner of Insurance is responsible for overseeing the operations and marketing of insurance companies and agents in Wisconsin. OCI annually investigates over 9,000 complaints about insurance companies and agents, and recovered $3.5 million last year for Wisconsin insurance consumers.

*For more information on OCI's investigation of American Bankers Insurance Group, or to obtain a copy of the November 23, 1998 press release, please contact OCI Public Information at (608) 267-9336