Prudential Insurance Settles With DOL Over Claim Denials

The US Department of Labor has settled with the Prudential Insurance Company of America after a federal investigation found the company denied claims when participants died despite collecting life insurance premiums from them for extended periods, the agency said Wednesday.

The Prudential Financial Inc. subsidiary allegedly cited the participants’ failure to provide evidence of insurability when they applied for insurance as the reason for denying their claim after their deaths, DOL said.

The settlement prohibits the company from denying a beneficiary’s claim based on the lack of evidence of insurability when premiums were collected for more than three months ...