Special Committee on Metropolitan Life - NAIC

  • "Special Committee on Metropolitan Life" - NAIC (Executive Committee)
  • Upon motion duly made and seconded, the Executive (EX) Committee voted to add a charge to the Life Insurance (A) Committee as follows:
    • Receive and consider recommendations from other NAIC committees (such as the (EX) Special Committee on Metropolitan Life) for action to enhance review and regulation of life insurance products, disclosure, and sales practices to ensure compliance with such regulation and to improve consumer protection.

1994-1, NAIC Proceedings

  • (p19) - Upon motion duly made and seconded, the Executive (EX) Committee voted to add a charge to the Life Insurance (A) Committee as follows:
    • Receive and consider recommendations from other NAIC committees (such as the (EX) Special Committee on Metropolitan Life) for action to enhance review and regulation of life insurance products, disclosure, and sales practices to ensure compliance with such regulation and to improve consumer protection.
  • (p23) - (EX) Special Committee on Metropolitan Life
    • 1. Coordinate the investigation and dissemination of information of allegations of consumer fraud against Metropolitan Life Insurance Company.
  • (p29) - 6. Receive and consider recommendations from other NAIC committees (such as the (EX) Special Committee on Metropolitan Life)
    • for action to enhance review and regulation of life insurance products, disclosure and sales practices to ensure compliance with such regulation and to improve consumer protection .
  • (p38) - Metropolitan Life (EX) Special Committee March 7, 1994, Minutes (Attachment Seven) ... 124
    Metropolitan Life Special Committee March 2, 1994, Minutes (Attachment Seven-A) ... 124
    Metropolitan Life Special Committee Jan. 28, 1994, Minutes (Attachment Seven-Al) .... 125
    Metropolitan Life Special Committee Jao. 20, 1994, Minutes (Attachment Seven-Ala) ... 126
    Metropolitan Life Special Committee Dec. 17, 1993 Minutes (Attachment Seven-Alai) ... 127
  • (p44) - 3. Heard that Massachusetts had recently reached a consent agreement with Metropolitan, which includes restitution to policyholders and that a fine had earlier been paid by Metropolitan.
  • (p127) - 2. Discovery and Description of Problem
    • Mr. Kummer described the problem as one where agents have been found to be marketing a life insurance product as an annuity/retirement product, particularly targeting consumers from business and professional associations, such as nurses and cosmetologists.
  • (p127) - 3. Course of Action
    • Mr. Kummer noted that since the advent of Florida's investigation, the Metropolitan home office assured the Florida Commissioner that the practice had ceased.
    • But in fact Florida regulators had found evidence to the contrary.
    • Mr. Kummer added that Florida was exploring alternatives for exerting influence on Metropolitan officers to stop the practice.
    • In addition to taking action against the company, Florida recommended that action be sought against the agents involved.
  • (p128) - Commissioner Tom Gallagher (Fla.) assured the committee members that Florida would continue to investigate on their behalf, with goals of finding out by whom and how such marketing was authorized.
    • He added they hoped to be ready to seek depositions within 45 days.

1994-1, NAIC Proceedings

  • (p39) - Metropolitan Life (EX) Special Committee June 15,1994, Minutes (Attachment Eight) - p141
  •  (p45) - (EX Special Committee on Metropolitan Life) - June 15. 1994 - Baltimore. Maryland
    • 1. Heard a status report on the states' settlement actions against Metropolitan Life, including that 48 states plus the District of Columbia had signed a memorandum of intent with the company and 30 of those states had completed their consent agreements, seven states are in the process of finalizing agreements, and the remaining jurisdictions are in discussion phases.
    • 2. Adopted a motion to dissolve the (EX) Special Committee on Metropolitan Life and recommended to the NAIC Executive Committee that the committee be reappointed to coordinate state efforts and responses to any multistate issues of unlawful sales activities of life insurers brought forward by any NAIC member.

(p141) - 

  • 1. Discuss Status of States' Settlement Actions
    • Mr. Sumner reported that the Met Life restitution plan is being administered by federal court through a class action suit.  Restitution claim forms have been mailed to more than 63,000 policyholders.
  • 2. Formal Action Against Met Life Agents
    Mr. Sumner reported that the Florida Insurance Commissioner had charged approximately 100 insurance agents in connection with the Met Life investigation.
  • 4. Recommendation to Executive Committee and Dissolution of Committee
    • the committee voted to recommend that the (EX) Special Committee on Metropolitan Life be discharged.

1994-2, NAIC Proceedings