New York State
Insurance Department


ISSUED: 8/29/2002

FOR IMMEDIATE RELEASE

STATEMENT BY NEW YORK STATE INSURANCE SUPERINTENDENT GREGORY V. SERIO ON METLIFE’S REGULATORY AND CLASS ACTION SETTLEMENTS

          "The Department is both pleased and gratified that a settlement has been reached to compensate policyholders of MetLife that were in the past treated differently because of their race. Although the insidious practice of race-based underwriting can never truly be remedied, approximately 1.8 million policies are likely to receive benefits in the form of cash payments, increased policy death benefits or special settlement death benefits.

          The Department conducted a thorough and far-reaching examination with the assistance of legal and actuarial consultants. The Department focused their efforts on achieving the ultimate goal of reparations for all those affected by race-based underwriting guidelines. We insisted that relief reach back to 1901, and fully compensate those who paid more because of race-based underwriting. We also insisted that MetLife pay interest with respect to certain policies that have matured or terminated, and that MetLife provide relief automatically to the extent possible.

          The Department is also actively involved in and continues to pursue other investigations involving additional New York licensees." 

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