“MetLife, one of the world’s largest insurers, is paying a $60 million penalty to the authorities in New York for permitting two subsidiaries to operate without first obtaining the required license to sell insurance.
“New York officials reached the settlement after finding that the MetLife subsidiaries had solicited business in the state without having a license and also misled state insurance officials about their activities. MetLife acquired the subsidiaries from American International Group in 2010 and the improper conduct dates back as far as 2007, according to New York officials.
“In settling with New York authorities, MetLife agreed to pay a fine of $50 million to the New York State Department of Financial Services and a $10 million fine to the Manhattan district attorney’s office. The settlement with New York prosecutors included a deferred prosecution agreement, which was a recognition of the fact that MetLife cooperated with the investigation.
“State regulators found that the two former AIG subsidiaires, American Life Insurance and Delaware American Life Insurance, generated about $900 million in premiums from selling and renewing insurance policies sold by New York sales representatives to multinational companies from 2007 to 2012. State officials said the violations ended in 2012. New York requires insurers entities to obtain a license to sell insurance if they solicit business within the state.”
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Read full NY Times article here.
