MetLife will pay $13.5M to end probe of 'improper' broker payments

MetLife Inc., the biggest U.S. life insurer, agreed to pay the government $13.5 million to resolve an investigation into “improper” payments to a San Diego-based broker that sold the company's coverage.
JUL 06, 2010
By  Bloomberg
MetLife Inc., the biggest U.S. life insurer, agreed to pay the government $13.5 million to resolve an investigation into “improper” payments to a San Diego-based broker that sold the company's coverage. “MetLife made millions of dollars in improper payments to obtain the business of the brokerage firm's clients,” the Department of Justice said in a statement today. “These hidden fees were, in turn, generally included in the rates charged by MetLife” to the insurance customer. MetLife failed to report the payments as required by the Employee Retirement Income Security Act, U.S. Attorney for the Southern District of California Karen Hewitt said in the statement. The payments helped the insurer, led by Chief Executive Officer Robert Henrikson, bid for business with “major corporate clients,” the department said. “This settlement relates to contingent compensation and other payments made to a particular broker more than 5 years ago,” Christopher Breslin, a spokesman for New York-based MetLife, said in an e-mailed statement. “We are pleased to put the matter behind us.” MetLife cooperated in the probe and will continue help government officials as the investigation continues, the Department of Justice said. The insurance broker wasn't named in the statement.

Latest News

The power of cultivating personal connections
The power of cultivating personal connections

Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.

A variety of succession options
A variety of succession options

Whichever path you go down, act now while you're still in control.

'I’ll never recommend bitcoin,' advisor insists
'I’ll never recommend bitcoin,' advisor insists

Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.

LPL raises target for advisors’ bonuses for first time in a decade
LPL raises target for advisors’ bonuses for first time in a decade

“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.

What do older Americans have to say about long-term care?
What do older Americans have to say about long-term care?

Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound