Statement from the Prudential Insurance Company of America
(Editor's note: Prudential and Florida reached a settlement agreement Feb. 19, 1997)
Prudential has sought to reach agreement with Florida. We have already reached agreements with 46 other states and with plaintiffs' counsel representing policyowners throughout the country. Florida's announcement today does not bring us closer to providing remedies to policyowners in that state.
Prudential is anxious to begin our Remediation Program in Florida, and has offered numerous times to resolve all the complaints of Florida policyowners. We have, to date, been unable to learn from the department what additional relief to policyowners they would like us to provide.
The Remediation Plan accepted by 46 states and the plaintiffs' counsel is fair and equitable. It allows people who were misled to receive remedies specific to the circumstances of their individual cases. It does not limit the number of people who can receive remedies or the amount of money Prudential would spend to provide those remedies. Customers do not have to present written evidence of deception to obtain relief.
Prudential's sales activities have been the focus of a nationwide Multi-State Task Force of state insurance commissioners. Prudential produced thousands of records and hundreds of witnesses during that investigation and in connection with Florida's inquiry.
We have accepted the findings of the Multi-State Task Force that deceptive sales practices did occur. We also accept the finding that the company's attempts to correct those problems were not effective enough. Those sales practices and our failure to be more effective are clearly unacceptable and we are taking aggressive steps to ensure they are not repeated.
Prudential is committed to Florida and its policyowners in that state. We remain open to discussions with state officials on finding a solution that would help our policyowners in Florida.