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They’re in the MONY
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Business New Haven
11/27/2000
By: BNH
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HARTFORD - State Attorney General Richard Blumenthal and Insurance Commissioner Susan Cogswell announced November 14 that they had reached a settlement with the MONY Life Insurance Co. over alleged misrepresentations of benefits and costs of its life-insurance plans sold to several Connecticut municipalities.
The investigation, which began after Killingworth First Selectman David LeVasseur filed a complaint with the AG's office, focused on the sale of a “financial security plan” to towns and municipal organizations in the state from 1988 to '93. The plan purported to offer retirement, disability and life-insurance benefits as an incentive for volunteer firefighters. The investigation revealed that MONY agents misrepresented costs and benefits of the plan to the towns, which include Old Lyme, Bethany, East Haddam, Haddam, Guilford, Madison, Orange and Valley Shore Emergency Communication Inc. of Westbrook.
Killingworth settled in May with MONY for $595,000. Under terms of this settlement, MONY must offer Old Lyme and Bethany a return of premium plus eight percent compounded interest. Guilford, Haddam, Madison, Orange and Valley Shore will receive the difference between previous settlements and a return of premiums plus eight percent compounded from the date of the sale to the date the policies were cancelled. The towns have 90 days to decide whether to accept the offer.
In addition to restitution to the towns, MONY agreed to pay the state a fine of $250,000.
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