State to get money to compensate blacks who paid more for insurance

COLUMBIA, S.C. - South Carolina has joined a settlement agreement with two Georgia life insurance companies that are accused of charging black customers more than white customers for insurance policies. <br> <br> More than 500,000 policies in South Carolina could be affected by the agreement with Life Insurance Co. of Georgia and Southland Life Insurance, said John O&#39;Neal, associate general counsel for the South Carolina Insurance Department. <br> <br> O&#39;Neal did not have details on how much money policyholders would receive or how they would get their money. The premiums were for small insurance policies often used to pay burial expenses. <br> <br> In February, the two companies agreed to pay more than $60 million to settle claims they charged blacks in 12 other states higher premiums than whites. South Carolina is expected to get more than $700,000 in the settlement, O&#39;Neal said. <br> <br> Last year, Liberty Life Insurance Co. was fined $2 million and given a one-year suspension from selling life insurance in South Carolina for charging black customers more than whites for similar life insurance. <br> <br> The Greenville-based company is contesting the fine and suspension.