Pacific Life Agrees to Pay $250,000 Fine and Improve Practices for Long-Term Care and Life Insurance Policies in Consent Order With the Minn. Commerce Dept.

ST. PAUL, Minnesota, Nov. 29 -- The Minnesota Department of Commerce issued the following news release:

Pacific Life Insurance Company has agreed to pay a $250,000 fine and improve its practices for life insurance, long-term care insurance, and annuity contracts that it sells and services for Minnesota consumers, under a consent order with the Minnesota Department of Commerce.

The consent order is the result of an examination by Commerce's Enforcement Division, which alleges that Pacific Life violated several state insurance laws.

"Policies for long-term care and life insurance and annuities offer ways for consumers to reduce their and their families' financial risks. Because these are complex financial tools, consumers rely on insurers to follow state laws, to be consistent, and to clearly explain the benefits and costs for policies," said Jacqueline Olson, Commerce Assistant Commissioner of Enforcement. "Commerce is working to ensure Minnesota consumers are protected in dealing with these kinds of complex financial decisions. We are also working to ensure a fair and equitable marketplace. That helps build trust for consumers and businesses."

Pacific Life, directly or through its appointed insurance agents, is alleged to have:

* Failed to follow its own review guidelines to determine whether the life insurance, long-term care insurance, and annuity contracts applied for by Minnesota consumers were suitable.

* Failed to take appropriate action against its appointed insurance producers when they did not comply with Pacific Life's guidelines on suitability.

* Failed to ensure, in some instances, that the insurance policy and any riders sold to Minnesota consumers met those consumers' financial goals.

* Failed to appropriately consider the fees charged for insurance policy riders and/or the loss of other benefits when Pacific Life, directly or through its appointed agents, recommended the replacement of existing policies.

The consent order includes a civil penalty of $250,000 along with ongoing monitoring to ensure compliance. The consent order can be viewed here (https://mn.gov/commerce-stat/pdfs/news/2023/2023-11_Pacific-Life-Consent-Order-and-MN-Corrective-Action-Plan-signed.pdf).

Minnesota Consumer Complaints and License Look-up

Minnesotans can file complaints about insurance companies: File a complaint online (https://mn.gov/commerce/consumer/file-a-complaint/) or contact the Minnesota Department of Commerce Consumer Service Center: consumer.protection@state.mn.us or at 651-539-1600.

Consumers can also verify that an insurance company is licensed to do business in Minnesota with our License Lookup (https://mn.gov/commerce/licensing/license-lookup/) or view past enforcement actions (https://www.cards.commerce.state.mn.us/).

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Original text here: https://mn.gov/commerce/news/#/detail/appId/2/id/601670