OXENDINE ANNOUNCES FINE FOR PRUDENTIAL
Editor's Note: This press release comes from the Georgia Insurance Department's Web site, although you may have trouble finding it there.
Atlanta, August 22, 1996 -- Insurance Commissioner John W. Oxendine today announced that The Prudential Insurance Company of America will pay a fine of $384,200 "for unfair and deceptive trade practices" involving life insurance policies issued by the company in Georgia.
Oxendine said that as part of an investigation into the actions of some agents employed by Prudential, he issued an order directing the company to pay the substantial fine.
The consent order was signed based on the insurance company's willingness to provide a remedy for Georgia consumers who may have been harmed by certain sales and marketing practices of Prudential.
As part of the consent order, Prudential agrees to:
- Provide free educational seminars and training materials to Georgia consumers,
- Pay the $384,200 fine,
- And implement an Alternative Dispute Resolution.
While the consent order states that Prudential neither admits nor denies any wrongdoing, the company acknowledges that some of its agents may have misrepresented life insurance policies in the course of selling them to policyholders.
Prudential policyholders in Georgia affected by this order should soon receive information from Prudential outlining their options if they choose to participate in the settlement program through which the company is compensating consumers. Policyholders with questions may call Commissioner Oxendine's Office at 404-656-2070 or 1-800-656-2298.