MetLife Inc. announced Friday that it will pay $19 million to resolve an investigation by the New York Attorney General's Office into payments made to brokers to steer clients to its Metropolitan Life Insurance Co. subsidiary.
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The New York company will pay $16.5 million in restitutions to policyholders and a $2.5 million fine. It also agreed in the settlement to ban contingent commissions and disclose broker payments.
According to the Attorney General's Office, MetLife instructed salespeople to "leverage" commission agreements by telling brokers how close they were to meeting certain targets for business provided to MetLife. The brokers were guaranteed additional money for hitting the targets.
