AAA Life Insurance Co. of Livonia, MI is making offers of term life insurance to those who are AAA members. The offering contains a table of monthly premiums sorted by age group and by the coverage desired, and separates the premium amounts based on whether or not the applicant uses nicotine. The offering states "Send no money" with the application, and, if approved, no money is due unless you wish to keep the coverage after a 31 day trial period. I sent the application, which was approved, and my CREDIT CARD WAS CHARGED FOR ONE MONTH PREMIUM IMMEDIATELY at the inception of coverage.

That, however, is not the BIG problem with this apparent scam. You are not told until AFTER you have signed up and your credit card has been charged that the monthly premiums shown in the offer are valid ONLY for the first year, and that premiums can be jacked up for everyone in your insurance class each and every year thereafter. There is NO LIMIT to the amount of increase that can be imposed.

It is apparent that the premiums shown in the original offer are simply "teaser" rates, in the same category with offers of "zero percent interest" credit cards or "150 channels of cable TV for $19.95 a month." The difference is that at least the credit card and cable companies specify in their original offers that the prices are in effect only for a limited time. AAA Life Insurance doesn't do this. They notify you only AFTER you've signed up. They say they'll refund my money if I cancel the coverage within 31 days. I'll do that, and we'll see...

This is DEFINITELY not "your father's AAA." I remember when AAA was a well run, highly respected company.