Investigations by the state's Department of
Financial Services and the Manhattan District Attorney's Office
found that MetLife subsidiaries ALICO and DelAm, bought from AIG
in 2010, misrepresented their business activities to regulators.
An investigation is ongoing into violations by AIG and its
subsidiaries on conduct before the MetLife purchase, Benjamin
Lawsky, the state's top financial regulator, said in a
Manhattan District Attorney Cyrus Vance said in a statement that
the two subsidiaries used Manhattan-based staff to solicit
insurance business even though neither company was licensed to
do so in New York.
Metlife will pay a $50 million fine to Lawsky's agency. Another
$10 million will go to the Manhattan District Attorney's office
as part of a deferred prosecution agreement.
AIG disagrees that the conduct violates the law, according to a
statement from the company.
"A New York license is required only where a foreign insurer
issues policies covering New Yorkers," the statement said,
adding there was no evidence anyone was harmed.
(Reporting by Luciana Lopez and Karen Freifeld;
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