Prudential Agrees To Expensive Restitution

Sat., July 6, 1996

From Staff And Wire Reports

Prudential Insurance Co. of America has agreed to pay more than $20 million and create a multimillion-dollar restitution plan to help settle complaints it misled policyholders, officials said Friday.

The fine was proposed by a task force of state insurance regulators investigating sales practices at the nation’s largest life insurer. The group is scheduled to issue a report on its findings next week.

Citing unidentified sources, The Wall Street Journal said Friday that the report will contend sales abuses were more widespread than Prudential has acknowledged and that the company could have done more to stop them.

Executives previously have acknowledged only instances of wrongdoing by individual agents and managers, saying such instances violated the policy of the Newark-based company.

The Journal said the company would be fined a record $35 million.

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Prudential Agrees To Expensive Restitution

Jesse Tinsley

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