In the civil actions filed against the three insurance industry giants, it was alleged the firms paid a San Diego-based brokerage firm unlawful undisclosed rebates to encourage big businesses to sign with their firms.
“The undisclosed payments that diverted business to the defendants deprived the insurance companies’ corporate customers of the benefits of fair competition,” said District Attorney Steve Cooley, who joined with San Diego District Attorney Bonnie Dumanis and Alameda County District Attorney Thomas Orloff in the civil actions filed in San Diego.
MetLife, based in New York; Prudential, based in New Jersey; and Unum, based in Maine, agreed to injunctive terms requiring that the insurers disclose contingent payments to independent brokers. The companies entered into the separate settlements without admission of wrongdoing. All three worked cooperatively with the district attorneys’ offices.
Terms of the settlements include payment for $1.1 million in civil costs and penalties, which will be divided among the three District Attorneys’ offices to cover costs of the civil actions. MetLife agreed to pay $500,000; Prudential, $350,000; and Unum, $250,000.