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Insurance provider USAA settles with state over coverage for same-sex military widows

AG Martha Coakley looked into USAA’s practices.
AG Martha Coakley looked into USAA’s practices.Associated Press/file

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United Services Automobile Association has agreed to pay the Commonwealth $50,000 as part of a settlement with the attorney general, promising to provide insurance coverage and membership to widowed or divorced same-sex spouses of current and former military customers.

Attorney General Martha Coakley’s office investigated USAA’s practices after a widower alleged that the company dropped his insurance after his spouse, a USAA member, died.

“We have marriage equality in Massachusetts,” Coakley said in a press release. “USAA will now offer equal insurance benefits to all of those who are eligible, including to same-sex widows of service members.”

The settlement, filed in Suffolk Superior Court this week and announced Friday, “does not constitute an admission by USAA of any unlawful or wrongful conduct or unfair or deceptive trade practices,’’ according to the court document.

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