MetLife Inc. will pay $60 million for insurance law and other violations at its American Life Insurance Co. and Delaware American Life Insurance Co. subsidiaries, New York State Superintendent of Financial Services Benjamin M. Lawsky said Monday.
Investigations by the New York State Department of Financial Services and the Manhattan District Attorney's Office found that both ALICO and DelAm, which MetLife acquired from American International Group Inc., in 2010, solicited insurance business in New York without a license and made intentional misrepresentations and omissions to the department about those activities, said a statement from the New York State Department of Financial Services.
Of the $60 million, a $50 million fine will be paid to DFS and $10 million will be paid to the Manhattan District Attorney's Office, the statement said.
MetLife has also agreed to fully cooperate with DFS’ ongoing investigation concerning insurance law violations by AIG, ALICO and DelAm, and other AIG subsidiaries and affiliates related to conduct prior to MetLife’s acquisition. DFS is further requiring that MetLife take immediate steps to come into compliance with New York insurance law.
“Our department will continue to aggressively investigate and pursue wrongdoing within this industry wherever we uncover it. MetLife did the right thing by stepping up to resolve this matter,” Mr. Lawsky said in the statement.
Although ALICO informed the department that the company “does not solicit business in New York,” the DFS investigation concluded that ALICO and other insurers collected approximately $900 million in premiums, including renewals, from multinational corporations involving contact with its New York sales representatives from 2007 to 2012.