Trans World Assurance

At the hearing in May, Trans World argued that its policy, called the Flexible Dollar Builder, was not subject to the military protection features in Georgia’s law. Its lawyers argued that the savings fund was part of the policy’s cash value, which made it exempt from rules governing “side funds” set up in tandem with insurance policies.
That view was supported by the tax-free treatment of the cash that accumulates in the fund, the lawyers said.
Mr. Oxendine rejected that reasoning, saying it was inconsistent with both Georgia court decisions and the insurer’s own financial statements and sales materials.
In one brochure, for example, the company distinguished a policy’s “accumulation fund” from its “cash value.”
And in its financial filings, it described the money in the funds as “deposits.”

2008 0703 – NYT – Georgia Bars Insurance Firm Over Violations Regulators in the state say Trans World Assurance, by Diana B. Henriques – [link]

1998 0717 – Tampa Bay Times – Insurers Accused of Bilking Recruits – [link]
- The problem, investigators and prosecutors say, is that customers did not read the pamphlets, simply taking the word of persuasive sales agents.
- “American Fidelity obviously is not in a position to know exactly what is said at each point-of-sale,” the companies’ lawyers argued in motions to prevent a temporary injunction.

2009 1229 – FLOIR – Press Release – Florida Office of Insurance Regulation Resolves Military Sales Litigation – Insurers to Pay $250,000 and Give Refunds to Policyholders – [link] – <Bad Link>
2009 0107 – FLOIR – Trans World – Consent Order – 9p — <Bad Link>

2010 – NP – Ledger-Enquirer – Trans World Assurance ordered to cease operations in Georgia, By Lily Gordon – [link]