American-Amicable Life Insurance Company of Texas has been sued and sanctioned in several major matters: a coordinated 2006 SEC and multi-state settlement worth roughly $70 million over deceptive life insurance sales to U.S. military personnel, an earlier nationwide class action known as Poore v. American-Amicable, and more recent Telephone Consumer Protection Act (TCPA) cases over telemarketing. Individual policyholders have also disputed claim denials and rescissions.
The 2006 Military Sales Settlement
The largest legal action against the Waco-based insurer targeted two products, “Wealth Builder” and “Horizon Life.” Both were 20-year term life policies packaged with a side fund pitched as an investment. Starting around 2000, American-Amicable ran a sales program called “Building Success” aimed at young service members, most of whom already had access to low-cost government-sponsored life coverage.
The SEC’s complaint alleged that agents introduced themselves as “financial advisers,” “financial coaches,” or “financial planners” rather than insurance agents. They used compound interest tables to suggest recruits could become millionaires in 20 years, disparaged mutual funds, bonds, and bank savings, and told buyers the life insurance was essentially free because of a “Moneyback Bonus” feature that most would never qualify for since their policies typically lapsed early. Early premiums went largely to insurance costs, and most purchasers earned little or nothing on the supposed investment.1SEC. SEC Complaint, SEC v. American-Amicable Life Insurance Company of Texas et al.
Solicitation tactics on bases drew separate scrutiny. Agents ran meetings at installation reception stations, provided meals during presentations, and misled soldiers into thinking they were attending mandatory financial management or retirement seminars.2WTOC. Amicable Life Insurance Companies Settlement Premiums were collected through automatic payroll allotments from military pay. A Department of Defense report cited in related litigation identified that allotment system as a target for “unethical insurance practitioners” because it produced an uninterrupted payment stream without effective safeguards.3CaseMine. American-Amicable Life Insurance Company of Texas
The SEC Action
On August 3, 2006, the SEC filed a civil complaint against American-Amicable Life Insurance Company of Texas, Pioneer American Insurance Company, and Pioneer Security Life Insurance Company in the U.S. District Court for the Southern District of California. The agency charged the three companies with violating Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933, antifraud provisions barring the use of material misstatements to obtain money and transactions that operate as a fraud on purchasers.4SEC. Litigation Release No. 19791
The companies settled without admitting or denying the allegations. They agreed to pay $10 million in disgorgement, distributed among roughly 57,000 military personnel who bought the products from 2000 onward. American-Amicable also agreed to stop selling “Horizon Life” and to shut down the “Building Success” program.4SEC. Litigation Release No. 19791
The Multi-State Settlement
The SEC case was part of a coordinated push. Georgia Insurance Commissioner John Oxendine and Texas Insurance Commissioner Mike Geeslin led a roughly 20-month multi-state investigation alongside the U.S. Department of Justice and the SEC.5U.S. Air Force. Insurance Companies to Pay Back GIs for Deception Their work produced a Multi-State Regulatory Settlement Agreement dated June 8, 2006, then adopted state by state through consent orders.6South Carolina Department of Insurance. American-Amicable Insurance Companies Consent Order
About 42 states, the District of Columbia, and Guam signed on, along with the DOJ and SEC. The combined settlement was valued at approximately $70 million.2WTOC. Amicable Life Insurance Companies Settlement
What Policyholders Got and What Changed
Beyond the $10 million cash refund to service members, the settlement required:
- Increased cash surrender values for in-force “Horizon Life” and “Wealth Builder” policies held by more than 53,000 policyholders.
- A five-year ban on selling any insurance products on military installations.
- Discontinuation of “Horizon Life” sales after December 1, 2006.
- An end to using military membership listings for solicitation, mandatory termination of agents caught selling on bases, and a bar on participating in or assisting with financial training seminars on installations.
Those terms were carried into consent orders across the participating states.2WTOC. Amicable Life Insurance Companies Settlement In Texas, the Department of Insurance approved release of a $10.9 million special deposit in October 2006 so that verified policyholders could be paid.7Texas Department of Insurance. Commissioner’s Order No. 06-1083
The Poore Class Action
Before regulators settled, private plaintiffs had already sued over the same type of conduct. In October 1998, Michael Poore and Bruce Bias filed a nationwide class action in the Superior Court of Liberty County, Georgia, alleging a fraudulent scheme in the sale of American-Amicable life insurance and seeking compensatory and punitive damages, rescission, restitution, and injunctive relief.8FindLaw. Poore v. American-Amicable Life Insurance Company of Texas
American-Amicable removed the case to federal court on diversity grounds. After the plaintiffs amended their complaint to drop punitive damages and cap individual recoveries below the federal threshold, the district court remanded. The Eleventh Circuit reversed, holding that federal jurisdiction is fixed at the time of removal and cannot be defeated by later amendments, and sent the case back for the district court to decide whether the amount-in-controversy requirement was met when the case was first removed.8FindLaw. Poore v. American-Amicable Life Insurance Company of Texas
Recent TCPA Telemarketing Suits
More recently, American-Amicable has been sued under the Telephone Consumer Protection Act, the federal statute restricting unsolicited calls and texts.
In January 2022, Stewart Smith filed suit in the U.S. District Court for the Eastern District of Pennsylvania. The initial complaint was dismissed with leave to amend; an amended complaint followed in April 2022, filed by attorney Anthony Paronich. A notice of resolution was filed in May 2022 and the court dismissed the case with prejudice.9CourtListener. Smith v. American-Amicable Life Insurance Company of Texas
In January 2025, a plaintiff named Costa filed a similar TCPA suit in the U.S. District Court for the District of South Carolina. The court dismissed one claim with prejudice in February 2025, and the parties filed a stipulation of dismissal without prejudice on the remaining claims in April 2025. Terms of any resolution were not publicly disclosed.10PACER Monitor. Costa v. American-Amicable Life Insurance Company of Texas
Claim Denials and Consumer Complaints
Individual policyholders have also fought the company over denied claims. In a Virginia matter handled by BenGlassLaw, a mother identified as Ava bought a life insurance policy on her medically fragile child, who used a wheelchair and supplemental oxygen. The agent met the child in person and told Ava no medical information was required and that the application would be accepted despite the child’s pre-existing conditions. When the child died at age four, American-Amicable denied the claim, saying medical information had not been disclosed, and moved to rescind the policy and return the premiums. Ava’s attorneys argued the agent’s personal knowledge of the condition should be imputed to the insurer and that the application form did not ask for medical information about the child. After the appeal was submitted, the company reversed course and paid the benefit in full.
As of June 2026, the Better Business Bureau lists 115 complaints against American-Amicable. Recurring grievances include agents describing life insurance as “mortgage protection insurance,” charges processed immediately after cold calls despite assurances they would not be, and aggressive conduct by phone agents.11Better Business Bureau. American-Amicable Life Insurance Company of Texas
Who American-Amicable Is Today
American-Amicable Life Insurance Company of Texas was founded in 1910 and is headquartered at 425 Austin Avenue in Waco, Texas. It sells life insurance and annuities nationwide and is regulated primarily by the Texas Department of Insurance.12iA Financial Group. Group of Companies13PR Newswire. Industrial Alliance Concludes Acquisition of American-Amicable14Insurance Portal. iA Financial Group Acquires 115,000 Policies