Melvyn Weiss leads $1.7B settlement over MetLife insurance sales practices
1. 9/17/15, 3:17 PMMetLife reaches settlement in lawsuit over alleged improper sales | CJOnline.com
Page 1 of 3http://cjonline.com/stories/081999/bus_metlife.shtml#.Vfs74elhPHg
MetLife reaches settlement in
lawsuit over alleged improper
sales
Posted:Posted:Thursday, August 19, 1999
By PAULA STORY
The Associated Press
PITTSBURGH -- MetLife would pay at least $1.7 billion to settle allegations it duped customers into buying questionable policies,
according to a preliminary agreement announced Wednesday.
The class-action litigation in U.S. District Court in Pittsburgh was Pled four years ago on behalf of about 7 million current and
former customers of Metropolitan Life Insurance Co. between 1982 and 1997.
The settlement must be approved by the court.
"This settlement provides a fair resolution to issues that have been the subject of protracted litigation and that have affected
much of our industry," said Robert H. Benmosche, chairman and chief executive ofPcer of MetLife.
Melvyn L. Weiss, co-lead counsel for the plaintiffs, said the settlement is one of several in recent years involving reimbursement
for alleged deceptive insurance sales practices.
The allegations include:
A practice known as "churning," in which an agent sells a customer a new, larger policy using the cash value of an existing policy
to purchase it. When the cash value of the old policy is exhausted, the customer must pay the larger premium or let the policy
lapse.
Sales of policies with so-called "vanishing premiums." Customers were told that after a certain number of years, they wouldn't
have to pay their premium anymore, but in some cases that never happened.
Insurance policies were portrayed as investment products but didn't earn the kind of money that customers believed they would
for retirement.
MetLife paid a $25 million Pne in Tampa, Fla., and an $800,000 Pne in Connecticut over similar allegations.
MetLife plans to mail information about the settlement to about 4 million current and 3 million former customers beginning Aug.
27.
"These practices were common in the industry since the early '80s. MetLife was not alone," Weiss said.
Prudential Insurance Co. of America has already paid $70 million in penalties and set aside $2.6 billion to pay policyholders who
sued over similar sales practices.
Copyright 1999 The Topeka Capital-Journal
Related SearchesRelated Searches
Trending this week:Trending this week:
Broker escapes tower's collapse
(http://cjonline.com/stories/091301/com_brokerescape.shtml#a
1.0&at_ab=-
&at_pos=0&at_tot=10&at_si=55fb3be1f54f5fd4)
The Watertower Debate
(http://cjonline.com/stories/060400/bus_watertower.shtml#at_p
1.0&at_ab=-
&at_pos=1&at_tot=10&at_si=55fb3be1f54f5fd4)
Troops patrolling streets of Washington as
federal government reopens after attack
(http://cjonline.com/stories/091201/ter_washtroops.shtml#at_pc
1.0&at_ab=-
&at_pos=2&at_tot=10&at_si=55fb3be1f54f5fd4)
Wendy Offerman
(http://cjonline.com/stories/091201/obt_offerman.shtml#at_pco
1.0&at_ab=-
&at_pos=3&at_tot=10&at_si=55fb3be1f54f5fd4)
Suspected killer accused in murder-for-hire
plot
(http://cjonline.com/stories/073099/kan_jonesarrest.shtml#at_p
1.0&at_ab=-
&at_pos=4&at_tot=10&at_si=55fb3be1f54f5fd4)
Killing near river described
(http://cjonline.com/stories/081606/loc_homelessadvocate.shtm
1.0&at_ab=-
&at_pos=5&at_tot=10&at_si=55fb3be1f54f5fd4)
Wrestling rankings
(http://cjonline.com/stories/011400/pre_wrestlingranks.shtml#a
1.0&at_ab=-
&at_pos=6&at_tot=10&at_si=55fb3be1f54f5fd4)
Killer Pghts death, says doctors didn't tell him
he was ill
2. 9/17/15, 3:17 PMMetLife reaches settlement in lawsuit over alleged improper sales | CJOnline.com
Page 2 of 3http://cjonline.com/stories/081999/bus_metlife.shtml#.Vfs74elhPHg
MELVYN L. WEISS (http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-
related-search&&querystring=%22MELVYN L. WEISS%22) CO-LEAD COUNSELCO-LEAD COUNSEL
(http://cjonline.com/search-results?(http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-
related-search&&querystring=%22CO-LEAD COUNSEL%22)related-search&&querystring=%22CO-LEAD COUNSEL%22) ALLEGED DECEPTIVE INSURANCE SALESALLEGED DECEPTIVE INSURANCE SALES
PRACTICESPRACTICES (http://cjonline.com/search-results?(http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-
related-search&&querystring=%22ALLEGED DECEPTIVE INSURANCE SALES PRACTICES%22)related-search&&querystring=%22ALLEGED DECEPTIVE INSURANCE SALES PRACTICES%22)
CHAIRMAN AND CHIEF EXECUTIVE OFFICER (http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-related-
search&&querystring=%22CHAIRMAN AND CHIEF EXECUTIVE OFFICER%22) TAMPA
(http://cjonline.com/search-results?utm_source=cjonline.com&utm_medium=link&utm_content=related-
searches&utm_campaign=mead-related-search&&querystring=%22TAMPA%22) METLIFE
(http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-
searches&utm_campaign=mead-related-search&&querystring=%22METLIFE%22)
USDUSD (http://cjonline.com/search-results?(http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-utm_source=cjonline.com&utm_medium=link&utm_content=related-
searches&utm_campaign=mead-related-searches&utm_campaign=mead-related-
search&&querystring=%22USD%22)search&&querystring=%22USD%22) CONNECTICUT (http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-related-
search&&querystring=%22CONNECTICUT%22) THE TOPEKA CAPITAL-JOURNALTHE TOPEKA CAPITAL-JOURNAL (http://cjonline.com/search-results?(http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-related-utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-related-
search&&querystring=%22THE TOPEKA CAPITAL-JOURNAL%22)search&&querystring=%22THE TOPEKA CAPITAL-JOURNAL%22) BUSINESS_FINANCEBUSINESS_FINANCE
(http://cjonline.com/search-results?(http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-utm_source=cjonline.com&utm_medium=link&utm_content=related-
searches&utm_campaign=mead-related-searches&utm_campaign=mead-related-
search&&querystring=%22BUSINESS_FINANCE%22)search&&querystring=%22BUSINESS_FINANCE%22) U.S. DISTRICT COURTU.S. DISTRICT COURT
(http://cjonline.com/search-results?(http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-utm_source=cjonline.com&utm_medium=link&utm_content=related-
searches&utm_campaign=mead-related-search&&querystring=%22U.S. DISTRICT COURT%22)searches&utm_campaign=mead-related-search&&querystring=%22U.S. DISTRICT COURT%22)
INVESTMENT PRODUCTS (http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-related-
search&&querystring=%22INVESTMENT PRODUCTS%22) ROBERT H. BENMOSCHE (http://cjonline.com/search-
results?utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-
related-search&&querystring=%22ROBERT H. BENMOSCHE%22) METROPOLITAN LIFE INSURANCE
CO. (http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-
searches&utm_campaign=mead-related-search&&querystring=%22METROPOLITAN
LIFE INSURANCE CO.%22) INSURANCE POLICIES (http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-related-
search&&querystring=%22INSURANCE POLICIES%22) TOPEKA CAPITALTOPEKA CAPITAL (http://cjonline.com/search-results?(http://cjonline.com/search-results?
utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-related-utm_source=cjonline.com&utm_medium=link&utm_content=related-searches&utm_campaign=mead-related-
search&&querystring=%22TOPEKA CAPITAL%22)search&&querystring=%22TOPEKA CAPITAL%22) PITTSBURGHPITTSBURGH (http://cjonline.com/search-results?(http://cjonline.com/search-results?
Home Insurance
Quotes
We Shop For You. Average Savings
of $437/year! Get Your Free Quote
Now.
(http://cjonline.com/stories/080501/new_killer.shtml#at_pco=cfd
1.0&at_ab=-
&at_pos=7&at_tot=10&at_si=55fb3be1f54f5fd4)
Dean: Multiple sclerosis can't slow this racing
mom
(http://cjonline.com/stories/070205/aut_sutton.shtml#at_pco=cf
1.0&at_ab=-
&at_pos=8&at_tot=10&at_si=55fb3be1f54f5fd4)
Family torn apart in wake of Columbine
(http://cjonline.com/stories/062999/new_colofamily.shtml#at_pc
1.0&at_ab=-
&at_pos=9&at_tot=10&at_si=55fb3be1f54f5fd4)
Powered by AddThis (//www.addthis.com/website-
tools/overview?
utm_source=AddThis%20Tools&utm_medium=image&utm_campaign=%5Bobject%20
