University of Virginia Library

Williams Labels Insurance
As 'Extremely Misleading'

By PAT PARTRIDGE

An "extremely misleading"
life insurance policy is being
offered to parents of
University students, Student
Affairs Vice President D. Alan
Williams has revealed.

In a solicitation letter to
parents, Beneficial National
Life Insurance Company of
New York has implied that
their program is sponsored by
the University when in fact it is
not, Mr. Williams said.

He warned that the
company's cover letter, from
"Stephen M. Dearholt,
Administrative Director of the
Center for Student Services,"
suggests by this title that it is
affiliated with or equivalent to
the University's Office of
Student Affairs.

There is no "Center for
Student Services" at the
University, however, and the
name of the Beneficial
National insurance company
does not appear on the cover
letter's heading.

Charles E. Davis III, a local
insurance agent, received
information about the
insurance offer from the parent
of a second-year University
student. He informed
University President Edgar F.
Shannon Jr., who referred the
matter to Student Affairs.

Mr. Williams and Mr. Davis
both contacted the Bureau of
Insurance of the State
Corporation Commission for
further investigation. W.B.
Flournoy, the Bureau's
assistant commissioner of
consumer services and
marketing, reported that Mr.
Dearholt is not licensed to sell
insurance in Virginia.

Representative Not Licensed

Mr. Flournoy also said that
Gary L. Sorensen, to whom the
insurance policy replies were to
be sent, is not licensed with
Beneficial National Life, but
with Old Line Life Insurance
Company of America. He also
noted that Beneficial National
Life has made similar
solicitations to the parents of
Emory and Henry College
students.

Mailing list sources for the
insurance company have not
been determined. University
officials suggest that last year's
student directory may have
been used. Since parents of
first-year students have been
contacted, however, Mr.
Williams stressed that he
"wants very much to find out"
the address source.

No List Issued

No official or comprehensive
address lists including those of
first-year students have been
issued so far this year.

Mr. Williams said he wishes
to warn parents against buying
the insurance under the
supposition that it is
University-sponsored. He
stated, "we have not solicited
any life insurance plan nor
contacted Beneficial National
Life Insurance Company."