1996 – Report of The Multi-state Life Insurance Task Force and Multi-State Market Conduct Examination of The Prudential Insurance Company of America

(p13-14) - Prudential's efforts to ensure that its agents understood and explained to consumers the effect of the change in dividend practices were largely unsuccessful and may have resulted in many cases, in an expectation that illustrated dividends would be paid.
(p15) - A review of company records reveals· that the company, through its internal complaint system, knew of cases of alleged misrepresentation and other improper sales practices by its agents, and in many instances failed to adequately investigate and impose effective discipline.
- Prudential is responsible for the behavior of its agents and managers and, therefore, where misrepresentations have resulted in harm to its customers, the company should provide appropriate compensation commensurate with the nature and amount of the harm and misrepresentation.
(p17-18) - Given the fact that it is difficult to ascertain who was harmed and the extent of that harm, the company concluded that the best approach to remediation would ·be to reach out to all potentially affected policyholders. Prudential, therefore, is prepared to contact 10.7 million policyholders nationwide....
(p173) - There appeared to be little if any awareness of guidelines and any consistency in agent training.
- Prudential must issue written directives to appropriate staff which would establish the following improvements to its training program:
(p222) - Training shall also cover areas of potential misrepresentation.