UPDATE 1-Florida seeks to suspend American General license

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MIAMI, March 19 (Reuters) - Florida's Office of Insurance Regulation said on Wednesday it was trying to suspend the license of American General Life Insurance because it had violated the right of life-insurance policy holders to travel.

In what the office called the most high-profile incident of unfair trade practices, American General, part of American International Group Inc (AIG.N: Quote, Profile, Research), had rebuffed an application by a U.S. congresswoman, Democratic Rep. Debbie Wasserman Schultz of Florida, to increase her life insurance in 2005.

"She had indicated on her application that she had future plans for international travel. While Wasserman Schultz did not address specifics in the application, American General later called and spoke with her husband who indicated that there was a possibility that she may plan future travel to Israel," the office said in a statement.

Florida General Counsel Steve Parton said the office did not take lightly the decision to seek to suspend the company's license through an administrative complaint.

"The office has warned American General in the past but they have refused to change their practices," he said.

Florida Insurance Commissioner Kevin McCarty said it was the first time his office had sought to revoke an insurance license for a violation of the Freedom to Travel Act. (Reporting by Michael Christie; Editing by Mark Porter)