Minn. slaps 4 life insurance giants: Prudential, John Hancock, MetLife, ING

  • Article by: JENNIFER BJORHUS , Star Tribune
  • Updated: August 16, 2012 - 8:36 PM

Four of the largest life insurers in the U.S. were punished for steering death-benefit recipients away from taking lump sums.

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sunnyreaderAug. 16, 12 4:39 PM

I worked for Prudential many years ago and had access to some of their secret memos. It looks like they haven't improved their ethics any since then.

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sblodenAug. 16, 12 5:18 PM

A $200,000 fine for mismanaging $19B? The company accountants must laugh so hard when writing this huge penalty check as they get ready to fly their lobbyists off to an exclusive golf retreat.

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IHATELOGINS0Aug. 16, 1211:10 PM

Big business will self-regulate, no oversight needed, right redublicans?

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lworthy3Aug. 16, 1211:37 PM

The fine seems way too low. I would like to know why it was so low.

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hereistandAug. 17, 12 6:00 AM

While on one level, yes, insurance companies should have made it easier to get lump-sum proceeds from a death claim. On another deeper level, the industry may have done a lot of people a favor. Numerous studies have shown that most people cannot handle *overnight* wealth (see Lottery Winners); this delay allowed people to mentally and emotionally prepare for the new $'s coming into their checking account. Critics, please reread my first sentence before attacking me.

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lilmamadebAug. 17, 12 6:42 AM

IHATELOGINS0 "Big business will self-regulate, no oversight needed, right redublicans?" Yep, you're right because there has never been a Democrat in office that didn't allow this. Grow up

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ontheroadagnAug. 17, 12 8:50 AM

well I have ING policy, think I'll look around at others and maybe change

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ziggymAug. 17, 1210:10 AM

@hereistand- yes, often lottery winners mismanage money and do poorly, but at least they know their options (payout over 20 years or a lump sum). It's unethical not to let bereaved beneficiaries know that they can do different things with their money. Though I don't know, I also doubt many life insurance policies are of the caliber of millions upon millions like big lotto winnings.

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wickeywackeyAug. 17, 1212:34 PM

Stop regulating these companies and let the market decide the winners and losers! People who don't read the fine print deserve what they get! Grief is no excuse for creating a socialist nanny state! Capitalism is dying because of these unelected, union-represented bureaucrats! Unleash the job creators! Any Rand had it right! Romney/Ryan 2012!

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nabsuseaAug. 17, 12 1:44 PM

These people still had immeadiate access to their money, earning a greater interest rate than most banks pay, and have time to consult for additional financial consultants. The consumer is still the one that ends up paying for the fines as it impacts everyone's rates. Thanks Minnesota for increasing my insurance premiums!

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