New York regulators say a life insurer failed to meet state disclosure requirements when selling life insurance policies and annuities in their state.
The New York State Insurance Department has imposed a $1.25 million fine in connection with the allegations on Allstate Life Insurance Company of New York, a unit of Allstate Corp., Northbrook, Ill.
The New York department also is requiring the company pay $17 million in restitution to about 6,500 current and former customers.
New York department examiners found evidence that Allstate Life had failed to provide complete and accurate disclosures, or had failed to document the fact that it had provided such disclosures, for about 4,500 annuity customers and 2,000 life insurance policy customers who did business with the company from Jan. 1, 2001, to Dec. 31, 2003, officials say.
The disclosure problems were violations of New York Regulation 60, which requires insurers to inform customers who are thinking about replacing existing annuity contracts or life insurance policies about the potential costs and risks of replacing the existing products, officials say.