AMS settles class-action lawsuit News-Chronicle American Medical Security Group Inc., based in Howard, has settled a class-action lawsuit in Florida over a rating system for policies and termination of policies. The amount of the settlement was not announced. AMS reached the agreement in Palm Beach, Fla., County Circuit Court in the case of Addison vs. American Medical Security Inc. and United Wisconsin Life Insurance Company, which is an AMS subsidiary. The agreement was expected to be approved by the court Thursday. The lawsuit, filed in 2002, covers issues relating to discontinuation of health insurance policies in 1998 and a rating methodology for clients the company used at the time. AMS won an appeal in April 2003 in Florida saying it did not violate any laws when it canceled coverage of customers taking their health into account. The Florida Department of Insurance had suspended AMS's license to sell insurance in the state, but that suspension was overturned in the 2003 decision. AMS has since dropped the tier rating system and added a block rating system. Under terms of the agreement, AMS is not admitting liability or wrongdoing, while claims in the suit will be dismissed "in exchange for consideration from AMS," according to a company release. AMS officials say they are adequately funded for the settlement. AMS president and CEO Samuel Miller said the settlement "allows us to remove a considerable distraction and expense from our business." He said the company felt its actions had been "fair, lawful and in the interest of our customers." AMS was bought earlier this month by PacifiCare of Cypress, Calif.